Suppose the consumer has preferences that can be represented by the utility function U(x,y) xy (a)On a graph draw the indifference curve associated with the utility level U 1 120 (b)On the same graph draw an indifference curve associated with the utility level U 2 200 ( Hint Please go to Microeconomics by Besanko to help you with the answer to this question )

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Question: Suppose the consumer has preferences that can be represented by the utility function U(x,y) =xy. (a)On a graph draw the indifference curve associated with the

Suppose the consumer has preferences that can be represented by the utility function U(x,y) =xy.

(a)On a graph draw the indifference curve associated with the utility level U₁=120.

(b)On the same graph draw an indifference curve associated with the utility level U₂=200. (Hint: Please go to Microeconomics by Besanko to help you with the answer to this question)

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