380 Problem set _3-preferences

# 380 Problem set _3-preferences - Preferences Problem Set#3...

This preview shows pages 1–2. Sign up to view the full content.

Preferences Problem Set #3 Econ. 380 R. Pope W2011 Notation here is as in Nicholson and Snyder: U is utility, x and y are two goods. 1. Graph the indifference curves defined by the following utility functions and note whether they are convex (linear or bowed in towards the origin). Also give the implicit equation for each indifference curve for 50 utils. a. 3 2 U x y = + special case of perfect substitution b. U=min (x/2,y/1)-special case of perfect complements c. U = x+ln(y) special case of quasi-linearity d. U = 4x .2 y .5 special case of Cobb-Douglas Utility e. .5 2 2 4 U x y = + special case of CES Utility 2. Show that the following utility functions for x > 0,y >0, all represent the same preference order on 2 R ++ : 2 2 . . . ln( ) ln( ) . a U xy b U x y c U x y d U xy = = = + = 3. Many forms of advertising seem to be about trying to convince people to have a particular set of preferences (persuasion) or providing information. Analyze the statements below. Are they about information, persuasion, or something else entirely?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 2

380 Problem set _3-preferences - Preferences Problem Set#3...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online