Question: (a) What is the difference between a normal good and an inferior good? (b) What is the difference between an iso-cost curve and an isoquant

(a) What is the difference between a normal good and an inferior good?

(b) What is the difference between an iso-cost curve and an isoquant curve in the producer's optimization graphs drawn in class?

(d) Consider the utility functionu(x, y) =x+ 2y. Write down any other utility function that represents the same preferences. andwhythe preferences are the same?

(e) Imagine that a slice of pizza costs $2 and a bottle of beer costs twice as much as a slice of pizza. Tim tells you that his MUbeeris always equal to 20. If Tim behaves optimally, what will his MUpizzabe?

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