Question: Problem 1. The preference relation is defined as follows: (x1, x2) E (y1, Y2) if 1 +2x2 > Y1 + 2 y2. Draw indifference

Problem 1. The preference relation is defined as follows: (x1, x2) E

Problem 1. The preference relation is defined as follows: (x1, x2) E (y1, Y2) if 1 +2x2 > Y1 + 2 y2. Draw indifference curves for bundles (2, 2), (3, 3), (4, 4). Show that E is strictly monotonic. Show that is convex.

Step by Step Solution

★★★★★

3.43 Rating (153 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a x1x2 will be indifferent to y1y2 if and only if x12x2y12y2 This is because if x12x2y12y2 then xy a... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

1. The function T: R R is defined as follows 0 -2 -1 2 1 T(v) = Av = V -2 0 4 (a) Show that T is a linear transformation from R to R'. (b) Find the kernel of T. (c) Find a basis for the range of T....

The preference relation is convex if and only if the upper preference sets (y) are convex for every y.

Show that if y1 (t) and y2 (t) are solutions of y' + p(t)y = 0 then so are y1 (t) + y2(t) and cy1 (t) for any constant c.

Below figure shows a uniform block of mass M and edge lengths a,b and c. Calculate its rotational inertia about an axis through one corner and perpendicular to the large face of the block

exercise 2 Exercise 1. (12 points) As we mentioned in class, a utility function U :X C 1R" > R represents the preference relation 2 when it agrees with the relation in the sense that: a > b (Eb u(a)...

Question 1. We postulate the utility function u! :L : u!(x) = a x - [1/2] x B x , (1.1) where a = (a1,..., aL ) ++ L , and B is an LL symmetric, positive definite matrix. 1.1. Compute the gradient...

Task.2. 2) If the price of automobiles were to increase substantially, the demand curve for gasoline would most likely A) shift leftward. B) shift rightward. C) become flatter. D) become steeper. 3)...

Question one. Chepa's utility function is given by U (x, y) = ln x + 4 ln y. Assume that Chepa has endowments (10, 10) and that Py = 10 throughout the problem. I need help with questions G) and H)...

Please answer all the required questions in detail I hope the answer is not copy-paste I hope that the answer will be according to the concepts in the chapter 3 The following article summarizes the...

ECO670...... 1. "Deriving the Envelope Thoerem: Consider the more general problem M(o, ) = max, f(x, a, 8) subject to g(r, a, 8) = 0. Show that: dM(a, B) _ Of(x', a, b) ag(x*, a, b) da da da 2. For...

Rewrite the equation in exponential form. log4 (127) = a log_4 (127) Preview log, (127) syntax error: this is not an equa

Amelie is setting up in business importing French cheeses. She could open up a small shop, a large outlet, or no shop at all if she decides to sell online only (which she won't be able to do for...

Describe the wicked problem in detail - when did it become an issue for the organization; which aspects of the problem are you most concerned about; who is affected; etc. Your Initial thought about...

This is a "critical thinking" Partnership project. Perform some Internet research and read about the Diffusion of Innovation (Rogers, 1962) and the 5 types of Human Adopter Groups that must be...

Based on the WCDM screen, how can we compare Italy and Japan in terms of overall default risk on their debt? Japan has over 3x the total debt of Italy, and a worse credit rating, so its credit...

Briefly explain Feeding America (an organization) Operational Model Based on the various operational models (e.g., entrepreneurial support model, market intermediary model, market linkage model,...

The company quickly acquired $42,000 in inventory, 40% of which was paid for in cash. The rest was acquired on open accounts that were payable after 30 days. Account: Account: Account: Account:...

Calculate Total Contribution Margin for the same items. Total Revenue Total Variable Costs Total Contribution Margin $50.00 a. $116.00 $329.70 b. $275.00 $14,796.00 $7,440.00 c. $40,931.25 d....

Show that the rectangle with maximum perimeter that can be inscribed in a circle is a square.

You suspect that the xy-data that you collect lie on either an exponential curve y = Abx or a power curve y = Cxd. To check, you plot ln y against x on one graph and ln y against ln x on another...

Prove that if f(x) ¤ g(x) for all x in some deleted interval about a and if Then L ¤ M. limf(x) = L and lim g(x)= M.

5.53. When subjectsin a recent GSS were asked whether they agreed with the following statements, the (yei1 , no) counts under various conditions were as follows:

5.44. You randomly sample five students at your school to estimate the proportion of students who like tofu. None of the five students say they like it. (a) Find the sample proportion who like it and...

5.22. A GSS asked, "What do you think is the ideal number of children for a family to have?" The 497 females who responded had a median of 2, mean of 3.02, and standard deviation of 1.81. (a) Report...