An individual consumes goods , and 2. Let w be the wealth of individual and p,> 0 and p2 > 0 be the prices of the goods. For each of the following utility functions provide a real life example of two goods , and 22 that satisfy them, draw the indifference curves, determine whether preferences are convex, strictly convex or neither, and compute the Walrasian demand, indirect utility function, Hicksian demand and expenditure function: a. U(x1, x2) min{2x1, x2} = b U(1 2)= max{2x1 2}

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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An individual consumes goods , and 2. Let w
be the wealth of individual and p,> 0 and p2 > 0
be the prices of the goods. For each of the
following utility functions provide a real life
example of two goods , and 22 that satisfy
them, draw the indifference curves, determine
whether preferences are convex, strictly
convex or neither, and compute the Walrasian
demand, indirect utility function, Hicksian
demand and expenditure function:
a. U(x1, x,) min{2x1, x2} =
b. U(1,2)= max{2x1,2}
c. U(x1, x2) = 2x, + X2
d. U(x1, x2) = x²x2
Transcribed Image Text:An individual consumes goods , and 2. Let w be the wealth of individual and p,> 0 and p2 > 0 be the prices of the goods. For each of the following utility functions provide a real life example of two goods , and 22 that satisfy them, draw the indifference curves, determine whether preferences are convex, strictly convex or neither, and compute the Walrasian demand, indirect utility function, Hicksian demand and expenditure function: a. U(x1, x,) min{2x1, x2} = b. U(1,2)= max{2x1,2} c. U(x1, x2) = 2x, + X2 d. U(x1, x2) = x²x2
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