There are two shows on Netflix that Jeff can watch, Show 1 and Show 2. ₁ measures the number of episodes watched of Show 1 and ₂ measures the number of episodes watched of Show 2. Jeff's preferences can be represented by u(x₁, x2) = x² + ax². Jeff has 6 hours available for watching Netflix today. Each episode of Show 1 lasts 30 minutes, while each episode of Show 2 lasts one hour. For all question parts, round to three decimal places if necessary. For parts (a)-(f), let a = 1. Draw Jeff's indifference curves for the utility levels u = 4, 9, 16. Draw a straight line between the bundles (₁, ₂) = (4,0) and (x₁, x₂) = (0,4). Now, use your picture to determine whether the following two statements are true or false. Answer "1" for true. Answer "0" for false. a) Statement 1: Jeff's preferences are strongly monotone. b) Statement 2: Jeff's preferences are strictly convex. c) Find the bundle at which one of Jeff's indifference curves is tangent to the budget line. (*1,*^2) = ( d) Evaluate Jeff's utility at the aforementioned tangent bundle. u(x1, x2) = e) Evaluate Jeff's utility at the bundle where he consumes only Show 1. u(12,0) = f) Evaluate Jeff's utility at the bundle where he consumes only Show 2. u(0, 6) = =
There are two shows on Netflix that Jeff can watch, Show 1 and Show 2. ₁ measures the number of episodes watched of Show 1 and ₂ measures the number of episodes watched of Show 2. Jeff's preferences can be represented by u(x₁, x2) = x² + ax². Jeff has 6 hours available for watching Netflix today. Each episode of Show 1 lasts 30 minutes, while each episode of Show 2 lasts one hour. For all question parts, round to three decimal places if necessary. For parts (a)-(f), let a = 1. Draw Jeff's indifference curves for the utility levels u = 4, 9, 16. Draw a straight line between the bundles (₁, ₂) = (4,0) and (x₁, x₂) = (0,4). Now, use your picture to determine whether the following two statements are true or false. Answer "1" for true. Answer "0" for false. a) Statement 1: Jeff's preferences are strongly monotone. b) Statement 2: Jeff's preferences are strictly convex. c) Find the bundle at which one of Jeff's indifference curves is tangent to the budget line. (*1,*^2) = ( d) Evaluate Jeff's utility at the aforementioned tangent bundle. u(x1, x2) = e) Evaluate Jeff's utility at the bundle where he consumes only Show 1. u(12,0) = f) Evaluate Jeff's utility at the bundle where he consumes only Show 2. u(0, 6) = =
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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can you please help me with questions c, d, e and f? Thanks!
![There are two shows on Netflix that Jeff can watch, Show 1 and Show 2. ₁ measures the number of
episodes watched of Show 1 and 2 measures the number of episodes watched of Show 2. Jeff's
preferences can be represented by u(x₁, x₂) = x² + ax². Jeff has 6 hours available for watching Netflix
today. Each episode of Show 1 lasts 30 minutes, while each episode of Show 2 lasts one hour. For all
question parts, round to three decimal places if necessary.
For parts (a) - (f), let a = 1. Draw Jeff's indifference curves for the utility levels u = 4, 9, 16. Draw a
straight line between the bundles (₁, ₂) = (4,0) and (x₁, x₂) = (0,4). Now, use your picture to
determine whether the following two statements are true or false. Answer "1" for true. Answer "0" for false.
a) Statement 1: Jeff's preferences are strongly monotone.
b) Statement 2: Jeff's preferences are strictly convex.
c) Find the bundle at which one of Jeff's indifference curves is tangent to the budget line.
(1,2)=(
d) Evaluate Jeff's utility at the aforementioned tangent bundle.
u(x1, x2) =
e) Evaluate Jeff's utility at the bundle where he consumes only Show 1.
u(12,0) =
f) Evaluate Jeff's utility at the bundle where he consumes only Show 2.
u (0,6)
=](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7a811aaa-3243-4dfa-904b-bceaeedb89d1%2Fd6b0fc27-47f1-4d1c-aa03-acdebbfae115%2Fyadk5zq_processed.png&w=3840&q=75)
Transcribed Image Text:There are two shows on Netflix that Jeff can watch, Show 1 and Show 2. ₁ measures the number of
episodes watched of Show 1 and 2 measures the number of episodes watched of Show 2. Jeff's
preferences can be represented by u(x₁, x₂) = x² + ax². Jeff has 6 hours available for watching Netflix
today. Each episode of Show 1 lasts 30 minutes, while each episode of Show 2 lasts one hour. For all
question parts, round to three decimal places if necessary.
For parts (a) - (f), let a = 1. Draw Jeff's indifference curves for the utility levels u = 4, 9, 16. Draw a
straight line between the bundles (₁, ₂) = (4,0) and (x₁, x₂) = (0,4). Now, use your picture to
determine whether the following two statements are true or false. Answer "1" for true. Answer "0" for false.
a) Statement 1: Jeff's preferences are strongly monotone.
b) Statement 2: Jeff's preferences are strictly convex.
c) Find the bundle at which one of Jeff's indifference curves is tangent to the budget line.
(1,2)=(
d) Evaluate Jeff's utility at the aforementioned tangent bundle.
u(x1, x2) =
e) Evaluate Jeff's utility at the bundle where he consumes only Show 1.
u(12,0) =
f) Evaluate Jeff's utility at the bundle where he consumes only Show 2.
u (0,6)
=
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