Suppose that the utility function for two goods X and Y is given by U = xy2,
Question:
(a) If the consumer purchases 9 units of Y, how many units of X must be purchased to retain the same level of utility?
(b) If the consumer purchases 81 units of X, how many units of Y must be purchased to retain the same level of utility?
(c) Graph the indifference curve for the utility level found in parts (a) and (b). Use the graph to confirm your answers to parts (a) and (b).
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Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
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