Question: Suppose Jerry's utility function is U = x1 x2. a) a) Find two more utility functions which represent Jerry's preferences. b) Determine which of the

Suppose Jerry's utility function is U = x1 x2. a)

a) Find two more utility functions which represent Jerry's preferences.

b) Determine which of the following bundles (x1, x2) bundles is Jerry's favorite bundle: A = (20, 5), B = (9,12), C = (10,10), D = (4,25), E = (5, 20)

c) State the equation of Jerry's indifference curve through bundle A, plot it and identify on the graph the "better than" set and the "worse than" set.

d) Find and interpret the slope of the indifference curve, dx2/dx1, at point A.

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