4.4 (0) Phil Rupp's utility function is U (x, y) = max{x, 2y}. (a) On the graph below, use blue ink to draw and label the line whose equation is x = 10. Also use blue ink to draw and label the line whose equation is 2y = 10. (b) If x = 10 and 2y < 10, then U(x, y) If x < 10 and 2y = 10, %3D then U(r, y) (c) Now use red ink to sketch in the indifference curve along which U (r, y) = 10. Does Phil have convex preferences? 20 15 10 0 5 10 15 20

4.4 (0) Phil Rupp's utility function is U (x, y) = max{x, 2y}. (a) On the graph below, use blue ink to draw and label the line whose equation is x = 10. Also use blue ink to draw and label the line whose equation is 2y = 10. (b) If x = 10 and 2y < 10, then U(x, y) If x < 10 and 2y = 10, %3D then U(r, y) (c) Now use red ink to sketch in the indifference curve along which U (r, y) = 10. Does Phil have convex preferences? 20 15 10 0 5 10 15 20

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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