Utility - 8 10 12 n Indifference Curve Price of Claritin...

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Budget Line Price of Apples $1.50 Price of Bananas $1.00 Income $12.00 QA QB Expenditure 8 0 12 6 3 12 4 6 12 2 9 12 0 12 12 E = Qa * Pa + Qb * Pb Slope = Pb/Pa 0 2 4 6 8 0 2 4 6 8 10 12 Budget Line Quantity of B Quantity of A
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10 12
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Jennifer's Utility from Pizza Slices Utility MU 1 10 10 2 18 8 3 24 6 4 28 4 5 30 2 6 30 0 7 28 -2 8 24 -4 MU = 10 - 2 *Q 1 2 3 4 5 6 7 8 -10 -5 0 5 10 15 20 25 30 35 Uti MU Slices Utility
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tility U
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Indifference Curve Price of Apples $1.50 Price of Bananas $1.00 Income $12.00 Utility 4.5 QA QB 20 0 12 1 10 2 8 3 6 4 5 5 4 6 3 7 3 8 2 9 2 10 1 11 1 12 Indifference Curve: U = sqrt(Qa) + sqrt(Qb) Slope = MRS = MUb/MUa 0 2 4 6 0 2 4 6 8 10 12 Utility Maximization Quantity of B Quantity of A
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Unformatted text preview: 8 10 12 n Indifference Curve Price of Claritin $40.00 $20.00 Price of Zyrtec $40.00 $80.00 Income $400.00 Utility 4.5 Qc Qz 20.3 0.0 12.3 1.0 9.5 2.0 7.7 3.0 6.3 4.0 5.1 5.0 4.2 6.0 3.4 7.0 2.8 8.0 2.3 9.0 1.8 10.0 1.4 11.0 1.1 12.0 Indifference Curve: U = sqrt(Qa) + sqrt(Qb) Slope = MRS = MUb/MUa Budget1 Budget2 Claritin Zyrtec Claritin Zyrtec 10 20 10 5 5 10 15 2 4 6 8 10 12 20 25 Row 38...
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This note was uploaded on 04/26/2010 for the course ECON 101 taught by Professor Staff during the Spring '08 term at Vassar.

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Utility - 8 10 12 n Indifference Curve Price of Claritin...

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