Question: She is indifferent between bundle (6, 5) and bundle (12, 3). What is the utility function for goods x and y? Hint: What is the
She is indifferent between bundle (6, 5) and bundle
(12, 3). What is the utility function for goods x and y? Hint: What is the shape of the indifference curve?
A consumer is willing to trade 4 units of x for 1 unit of y when she is consuming bundle (8, 1).
She is also willing to trade in 1 unit of x for 2 units of y when she is consuming bundle (4, 4). She is indifferent between these two bundles. Assuming that the utility function is Cobb–Douglas of the form U(x, y) = x α y β, where α and β are positive constants, what is the utility function for this consumer?
Was there a redundancy of information in part (b)?
If yes, how much is the minimum amount of information required in that question to derive the utility function?
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