This preview shows page 1. Sign up to view the full content.
Unformatted text preview: . a) Determine if there is a diminishing , MRSH M for this utility function b) Draw a graph to illustrate the shape of a typical indifference curve. Label the curve U1 . Does the indifference curve intersect either axis? On the same graph, draw a second indifference curve U2 , with > U2 U1 . c) The consumer has an income of $24 per week. The price of a hamburger is $2 and the price of a milkshake is $1. How many milkshakes and hamburgers will he buy each week if he maximizes utility? Illustrate your answer on a graph....
View Full Document
This note was uploaded on 05/11/2011 for the course ECON 301 taught by Professor Sheng during the Spring '11 term at ITT Tech Pittsburgh.
- Spring '11