Fred has the following utility function characterizing his preferences over leisure time and
. He is also constrained to be on his potential income
where w is the wage rate, T is total available hours, YN is nonla
Midterm 1 Review Problems
1. Tom, Dick, and Harry, the only three people on a desert island with two consumption goods,
apples and bananas, have utility functions UT, UD, and UH, respectively, where:
Some extra practice with derivatives.
Solve for the partial derivative with respect to x and y for the following functions. Note that
letters other than x and y are constants.
= square root (xy)