[Indifference Curves] Consider the utility function U(C1, C2) and B 1 In(C1)BIn(C2) 1. Using a program of your choice (say excel or matlab) plot indifference curves in the space (C1, C2) for U =-0.5, -1, and -1.5. Consider values of Cin the interval [0.1, 1]. Set the range of the vertical axis to [0, 2]. 2. Find an analytical expression for the slope of the indifference curve 3. Find the slope of indifference curve when C1 is 0.2 and 0.8. Which one is steeper? Explain

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[Indifference Curves] Consider the utility function U(C1, C2)
and B 1
In(C1)BIn(C2)
1. Using a program of your choice (say excel or matlab) plot indifference curves
in the space (C1, C2) for U =-0.5, -1, and -1.5. Consider values of Cin the
interval [0.1, 1]. Set the range of the vertical axis to [0, 2].
2. Find an analytical expression for the slope of the indifference curve
3. Find the slope of indifference curve when C1 is 0.2 and 0.8. Which one is
steeper? Explain
Transcribed Image Text:[Indifference Curves] Consider the utility function U(C1, C2) and B 1 In(C1)BIn(C2) 1. Using a program of your choice (say excel or matlab) plot indifference curves in the space (C1, C2) for U =-0.5, -1, and -1.5. Consider values of Cin the interval [0.1, 1]. Set the range of the vertical axis to [0, 2]. 2. Find an analytical expression for the slope of the indifference curve 3. Find the slope of indifference curve when C1 is 0.2 and 0.8. Which one is steeper? Explain
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