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For each of the utility functions below Draw the indifference curves for u 8 u 12 and u 16 showing all necessary work Briefly explain in words what the indifference curves look like

For each of the utility functions below, (i) Draw the indifference curves for u = 8, u = 12, and u = 16, showing all necessary work. Briefly explain in words what the indifference curves look like. (ii) Find the marginal rate of substitution. (iii) Note if any of our usual assumptions about preferences are violated. If (and only if) there are violations of our usual assumptions about preferences, briefly explain why the indifference curves look the way that they do, if the preferences represented by the utility function are rational, and what sort of scenario might justify the use of such a utility function. (a) u(x, y) = x + py (b) u(x, y) = xay1??a, where a = 1/3 (c) u(x, y) = 2x ?? y2

May 02 2020 View more View Less

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