Question 1. Suppose Barry only drinks coffee with 1/2 teaspoon of sugar. That is, if he is consuming more coffee or more sugar in a different ratio, it does not increase his utility. Let x₁ represent coffee and x2 represent teaspoons of sugar. a) What is Barry's utility function? b) Draw two indifference curves for Barry given the utility function you outlined above. Label two points on each indifference curve.

Question 1. Suppose Barry only drinks coffee with 1/2 teaspoon of sugar. That is, if he is consuming more coffee or more sugar in a different ratio, it does not increase his utility. Let x₁ represent coffee and x2 represent teaspoons of sugar. a) What is Barry's utility function? b) Draw two indifference curves for Barry given the utility function you outlined above. Label two points on each indifference curve.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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