Question 5 (30 points) Ellie gets utility from oranges (x1) and orange juice (x2), U(x1, x2). Ellie likes 2 oranges just as much as she likes one glass of orange juice. A. (15 points) What type of utility function represents Ellie's preferences (I am looking for a name here) and provide a utility function that represents Ellie's preferences. B. (15 points) If Ellie has the commodity bundle (12.2) what is her level of utility and what is her MRS at (12, 2)? Explain your answer carefully. Question 5 (30 points) Ellie gets utility from oranges (x1) and orange juice (x2), U(x1, x2). Ellie likes 2 oranges just as much as she likes one glass of orange juice. A. (15 points) What type of utility function represents Ellie's preferences (I am looking for a name here) and provide a utility function that represents Ellie's preferences. B. (15 points) If Ellie has the commodity bundle (12, 2) what is her level of utility and what is her MRS at (12. 2)? Explain your answer carefully.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 9P
Question
Question 5 (30 points) Ellie gets utility from oranges (x1) and orange juice (x2), U(x1, x2). Ellie likes 2 oranges just as
much as she likes one glass of orange juice. A. (15 points) What type of utility function represents Ellie's preferences (I
am looking for a name here) and provide a utility function that represents Ellie's preferences. B. (15 points) If Ellie has
the commodity bundle (12.2) what is her level of utility and what is her MRS at (12, 2)? Explain your answer carefully.
Question 5 (30 points) Ellie gets utility from oranges (x1) and orange juice (x2), U(x1, x2). Ellie
likes 2 oranges just as much as she likes one glass of orange juice.
A. (15 points) What type of utility function represents Ellie's preferences (I am looking for a name
here) and provide a utility function that represents Ellie's preferences.
B. (15 points) If Ellie has the commodity bundle (12, 2) what is her level of utility and what is her
MRS at (12. 2)? Explain your answer carefully.
Transcribed Image Text:Question 5 (30 points) Ellie gets utility from oranges (x1) and orange juice (x2), U(x1, x2). Ellie likes 2 oranges just as much as she likes one glass of orange juice. A. (15 points) What type of utility function represents Ellie's preferences (I am looking for a name here) and provide a utility function that represents Ellie's preferences. B. (15 points) If Ellie has the commodity bundle (12.2) what is her level of utility and what is her MRS at (12, 2)? Explain your answer carefully. Question 5 (30 points) Ellie gets utility from oranges (x1) and orange juice (x2), U(x1, x2). Ellie likes 2 oranges just as much as she likes one glass of orange juice. A. (15 points) What type of utility function represents Ellie's preferences (I am looking for a name here) and provide a utility function that represents Ellie's preferences. B. (15 points) If Ellie has the commodity bundle (12, 2) what is her level of utility and what is her MRS at (12. 2)? Explain your answer carefully.
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