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Business, 08.10.2020 14:01, Doobug9312
Clara’s utility function is U(X, Y ) = (X + 2)(Y + 1), where X is her consumption of good X and Y is her consumption of good Y . (a) Write an equation for Clara’s indifference curve that goes through the point (X, Y ) = (2, 8). Y = On the axes below, sketch Clara’s indifference curve for U = 36. Y 16 12 8 4 0 4 8 12 16 X (b) Suppose that the price of each good is 1 and that Clara has an income of 11. Draw in her budget line. Can Clara achieve a utility of 36 with this budget?
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Clara’s utility function is U(X, Y ) = (X + 2)(Y + 1), where X is her consumption of good X and Y is...
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