For each of the following utility functions over X = R+, depict each of the following sets using a number line: 1. U(x) = x The indifference set around x = 1 The lower contour set of x = 5
For each of the following utility functions over X = R+, depict each of the following sets using a number line: 1. U(x) = x The indifference set around x = 1 The lower contour set of x = 5
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.4P
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Transcribed Image Text:3 Utility functions
For each of the following utility functions over X = R+, depict each of the following sets
using a number line:
1. U(x) = x
The indifference set around x = 1
The lower contour set of x = 5
2. U(x) = (x - 5)²
The indifference set around x = 2
• The upper contour set of x = 4
min{x³, 64}
The lower contour set of x = 5
The indifference set around x = 4
4. U(x) = log10 x if x < 20, and U(x) = 0 otherwise
The upper contour set of x = 15
. The lower contour set of x = 25
3. U(x)
=
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