This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: x = 0 (and y > 0) or y = 0 (and x > 0), the indifference curves intersect both axes. 5 10 15 20 25 5 10 15 20 25 30 35 X Y U 2 U 1 f) The slope of a typical indifference curve at some basket ) , ( y x is the , 1 x y MRS x = . At 4 = x , , 1 0.5 4 x y MRS = = . Note that this holds regardless of the value of y . Therefore, the slope of any indifference curve at 4 = x will be 0.5. 3.24 First, the expression for MRS x,y is ( 29 x y y x y x MU MU MRS y x y x α1 == =1 1 1 , Since we know that MRS x,y = 4 when x = 4 and y = 8, 3 2 2 2 1 2 4 8 1 4 = ===...
View
Full
Document
This note was uploaded on 02/29/2012 for the course 220 320 taught by Professor Raven during the Summer '10 term at Rutgers.
 Summer '10
 Raven

Click to edit the document details