ECON281 Lecture Notes - Lecture 12: Indifference Curve, Ice Cream Cone, Utility
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Assume that than basket but less of good than basket to basket. ) along his: assume that two baskets and contains more of good basket. Abaybxbab: which of the following statements best explains the concept of diminishing marginal utility, as i consume additional ice cream cones, each ice cream cone adds more to my total happiness than the previous one. I must consume ice cream cones until i have a stomach ache: as i consume additional ice cream cones, each ice cream cone adds less to my total happiness than the previous one. What is the marginal rate of substitution: 10y3x3, 2x/5y, 5y/2x, 5y2x2, consider the utility function u = 5x +3y2, which has mux = 5 and muy = 6y. The indifference curves for this utility function will be: vertical, horizontal, upward sloping, l-shaped. Page 2 xyyxyxxyxyxy: suppose that a consumer has the utility function u = 5x + 7y.