ECON 10A Study Guide - Midterm Guide: Indifference Curve, Budget Constraint, Utility
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X is a monotonic good for values between 1 and 3. Y is a monotonic good for values between 1 and 3. X has increasing marginal utility for values between 1 and 3. Y has decreasing marginal utility for values between 1 and 3. Assume prices and income are unknown, but are all positive numbers. Solve for demands for x1 and x2: u(x1, x2 ) = 2x1 x1. X2: sketch indifference curves such that x1 and x2 are both bads. X2: sketch indifference curves such that x1 is a bad and x2 is a good. X2: sketch indifference curves such that x1 is a good and x2 is a bad. Sketch the indifference curve where u = 8. X1: for each of the following demand functions, put a check if the category applies and an x if it does not apply. (specify if your answer is affected by the level of income and prices)
