= (a). What kind of preferences are represented by a utility function of the form u(x1, x₂) √x₁ + x₂? What about the utility function v(x₁, X2) = 13x₁ + 13×₂? Compute the slope of the two indifference curves. Do their slopes depend on the bundle? (b). What kind of preferences are represented by a utility function of the form u(x1, x₂) = x₁ + √√x₂ ? Compute the slope of the indifference curve. Does it depend on the bundle? In which way? (c). Consider the utility function u(x₁, x₂) = √√x1x2. What kind of preferences does it
= (a). What kind of preferences are represented by a utility function of the form u(x1, x₂) √x₁ + x₂? What about the utility function v(x₁, X2) = 13x₁ + 13×₂? Compute the slope of the two indifference curves. Do their slopes depend on the bundle? (b). What kind of preferences are represented by a utility function of the form u(x1, x₂) = x₁ + √√x₂ ? Compute the slope of the indifference curve. Does it depend on the bundle? In which way? (c). Consider the utility function u(x₁, x₂) = √√x1x2. What kind of preferences does it
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.2P
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