Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. economics
  3. (a) if your utility is represented by u(x,y) = min

(a) If your utility is represented by u(x,y) = min(x+2y,2x+y);what do you indifference curves look like? (b)...

60.1K

Verified Solution

Question

Economics

(a) If your utility is represented by u(x,y) =min(x+2y,2x+y);what do you indifference curves look like?

(b) Given your answer in (a), obtain the MRS (marginal rates ofsubstitution).

(c) Suppose the prices of x and y are px = $3 and py = $1 andyou have 100 dollars. What would you choose?

(d) If px decreases to $1; what would you choose?

(e) Use the Slutsky decomposition to decompose the total priceeffect into the substitution effect and income effect when pxdecreases from $3 to $1

Answer & Explanation Solved by verified expert
4.1 Ratings (691 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Calculus
1.2K views

4 A function f t gives the rate of evaporation of water in liters per...

Basic Math
1.2K views

Evaluate the integral using partial fractions. ∫▒( x+3)/((x-9)^2 (x+2))

Statistics
1.2K views

4. One hundred draws are made at random with replacement form the box [1  3 3  9] Assume SDb=3...

Chemistry
1.2K views

A 2.43 g lead weight, initially at 10.6 ∘C, is submerged in 7.78 g of water...

Biology
1.2K views

How is bacterial killing mediated by the complement system?

Psychology
1.2K views

What types of reentry problems are often encountered by persons returning to the home culture? How...

General Management
1.2K views

Research current change models used by organizations to facilitate change. Compare and contrast two models. Describe...

Biology
1.2K views

Which of the following is an economic system which allows a government to have some...

Accounting
1.2K views

Pet Pals has two product lines: dog houses & dog toys. Income statement data for...

Accounting
1.2K views

Presented below is information for equipment owned by Monty Company at December 31, 2025: Assume...

Accounting
1.2K views

From inception of operations to December 31, 2020, Sarasota Corporation provided for uncollectible accounts receivable...

Accounting
1.2K views

Pickett Company gathered the following reconciling information in preparing its April bank reconciliation: Calculate the...