Consider the following utility functions:Eleanor Rigby !" #, % = #%/10Father McKenzie !* #, % = 100#2%2;where # is one kilogram of apples and % one kilogram of bananas.1) Sketch all the bundles that Eleanor finds indifferent to having 8kg of apples and 2kg of bananas.2) Sketch all the bundles that Eleanor finds indifferent to having 6kg of apples and 4kg of bananas.3) Sketch all the bundles that Father McKenzie finds indifferent to having 8kg of apples and 2kg of bananas.
Consider the following utility functions:Eleanor Rigby !" #, % = #%/10Father McKenzie !* #, % = 100#2%2;where # is one kilogram of apples and % one kilogram of bananas.1) Sketch all the bundles that Eleanor finds indifferent to having 8kg of apples and 2kg of bananas.2) Sketch all the bundles that Eleanor finds indifferent to having 6kg of apples and 4kg of bananas.3) Sketch all the bundles that Father McKenzie finds indifferent to having 8kg of apples and 2kg of bananas.
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.2P
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Question
Consider the following utility functions:
Eleanor Rigby !" #, % = #%/10
Father McKenzie !* #, % = 100#2%2;
where # is one kilogram of apples and % one kilogram of bananas.
1) Sketch all the bundles that Eleanor finds indifferent to having 8kg of apples and 2kg of bananas.
2) Sketch all the bundles that Eleanor finds indifferent to having 6kg of apples and 4kg of bananas.
3) Sketch all the bundles that Father McKenzie finds indifferent to having 8kg of apples and 2kg of bananas.
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