Question: 2. Make 5 graphs. On each graph, draw the following budget constraints. Label the axes, intercepts, and slope. (a) 23:1 + 43:2 = 12 (b)


2. Make 5 graphs. On each graph, draw the following budget constraints. Label the axes, intercepts, and slope. (a) 23:1 + 43:2 = 12 (b) 4161 + 4332 = 16 3. For each of the following utility functions, calculate the MRS. Solve for the optimal choice for each budget constraint in question 2. Add an indifference curve for each optimal choice to your graphs in question 2 (2 indifference curves and 1 utility function for each graph). Label your indifference curves, the optimal choices, and the MRS (if it is dened). (a) M131, 232) = (1:1 + 21132 (b) u(21, 2) = min {2x1, 2x2} (c u(x1, 202) = 122 (d) u(x1, 202) = 1+4x2 (e) u(x1, 2) = 4in(21) + 4x2
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
