Draw an indifference curve passing through the point

Assignment Help Business Economics

Reference no: EM13887150

Linus has a utility function U( x, y,) = x + 3y

a) Draw an indifference curve passing through the point (x ,y) = (3, 3), then draw an indifference curve connecting ever bundle such that U = 6.

b) What is an equation the describes Linus's budget if px= 1, py = 2, and income is 8. Add this line to your graph in part a).

c) What bundle would Linus choose if prices change to if px= 1, py = 4, and income is 8.

Reference no: EM13887150

Questions Cloud

Expected value approach to determine the optimal decision : 1.The following profit payoff table was presented in Problem.

Accuracy of the internal pressure model : Compare the relative magnitudes of the terms and assess the accuracy of the internal pressure model compared to this particular data.

What internal pressure can it withstand without yielding : What internal pressure can it withstand without yielding, according to Tresca? What internal pressure can it withstand without yielding, according to von Mises?

Importance of statistical software in marketing research : Write 1 to 2 well-developed and research-supported paragraphs discussing the importance of statistical software in marketing research data analysis

Draw an indifference curve passing through the point : Linus has a utility function U( x, y,) = x + 3y. Draw an indifference curve passing through the point (x ,y) = (3, 3), then draw an indifference curve connecting ever bundle such that U = 6. What is an equation the describes Linus's budget if px= 1, ..

What is the discount rate on this security : You would like to purchase a T- bill that has a $ 10,000 face value and 270 days to maturity. The current price of the T- bill is $ 9,860. What is the discount rate on this security? What is its bond equivalent yield?

Write an equation that describes her budget constraint : Clara's utility function is U(X,Y) = (X + 2)(Y +1). Write an equation for Clara's indifference curve that goes through the point (X,Y) = (2, 8). Suppose that the price of each good is one and that Clara has an income of 11. Write an equation that des..

How does taxation harm the economy? : How does taxation harm the economy? If taxes hurt the economy, why do they exist?

What is the bond equivalent yield : What is the bond equivalent yield of a 180- day, $ 1 million face value Treasury bill with a discount rate of 4.5 percent?

User Account

All Pages