Do you think bridget and erin have the same preferences

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Suppose that Bridget and Erin spend their incomes on two goods, food (F) and clothing (e). Bridget"s preferences are represented by the utility function u(F,C) = 10Fe, while Erin"s preferences are represented by the utility function u(F,C) = .20F2e2.

a. With food on the horizontal axis and clothing on the vertical axis, identify on a graph the set of points that give Bridget the same level of utility as the bundle (10,5). Do the same for Erin on a separate graph.

b. On the same two graphs, identify the set of bundles that give Bridget and Erin the same level of utility as the bundle (15, 8).

c. Do you think Bridget and Erin have the same preferences or different preferences?

Reference no: EM13321467

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