Question 1. Suppose Barry only drinks coffee with 1/2 teaspoon of sugar. That is, if he is consuming more coffee or more sugar in a different ratio, it does not increase his utility. Let x₁ represent coffee and x2 represent teaspoons of sugar. a) What is Barry's utility function? b) Draw two indifference curves for Barry given the utility function you outlined above. Label two points on each indifference curve.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Can you help me answer this macroeconomics theory question
Question 1. Suppose Barry only drinks coffee with 1/2 teaspoon of sugar. That is, if he is consuming more
coffee or more sugar in a different ratio, it does not increase his utility. Let x₁ represent coffee and x2 represent
teaspoons of sugar.
a) What is Barry's utility function?
b) Draw two indifference curves for Barry given the utility function you outlined above. Label two points on
each indifference curve.
Transcribed Image Text:Question 1. Suppose Barry only drinks coffee with 1/2 teaspoon of sugar. That is, if he is consuming more coffee or more sugar in a different ratio, it does not increase his utility. Let x₁ represent coffee and x2 represent teaspoons of sugar. a) What is Barry's utility function? b) Draw two indifference curves for Barry given the utility function you outlined above. Label two points on each indifference curve.
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