This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Problems 2, 3, 4, 5, 6,15, 18 Seventh edition pages 163 165: Problems 2, 3, 4, 5, 6, 15, 18 Additional Problem: 1 Suppose you have the utility function xy y x U = ) , ( . a) What is your utility for bundle (40, 5)? What is the equation of indifference curve through (40, 5)? b) Your friend offers to give you 15 units of y if you will give her 25 units of x . Would you have a bundle that you like better than (40,5) if you make this trade? What is the largest number of units of x that your friend can demand from you in return for 15 units of y if she expects you to be willing to trade or at least indifferent about trading?...
View
Full
Document
 Spring '09
 AVRINRAD

Click to edit the document details