Hella the Greek's preferences can be described by the utility function U(x, y) = (x^1/2 + 3^1//2)^2. (a) What is the indifference curve for a utility of 49? (b) By how much does utility increase when Hella increases consumption of good y by one (small) unit, when initially U = 49 and x = 1? (c) Holding utility constant at 49, if initially x = 1, how many additional (small) units of y does Hella have to consume if her consumption of x drops by 6 (small) units?
Hella the Greek's preferences can be described by the utility function U(x, y) = (x^1/2 + 3^1//2)^2. (a) What is the indifference curve for a utility of 49? (b) By how much does utility increase when Hella increases consumption of good y by one (small) unit, when initially U = 49 and x = 1? (c) Holding utility constant at 49, if initially x = 1, how many additional (small) units of y does Hella have to consume if her consumption of x drops by 6 (small) units?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Hella the Greek's preferences can be described by the utility function U(x, y) = (x^1/2 + 3^1//2)^2.
(a) What is the indifference curve for a utility of 49?
(b) By how much does utility increase when Hella increases consumption of good y by one (small) unit,
when initially U = 49 and x = 1?
(c) Holding utility constant at 49, if initially x = 1, how many additional (small) units of y does Hella have
to consume if her consumption of x drops by 6 (small) units?
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