Business, 11.10.2020 23:01 alyssacruz999

Write down the equation of a utility function and draw an indifference curve that corresponds to each of the following cases.(a) Carol is always willing to give up 2 pizzas in exchange for 1 additional beer no matter how many pizzas and beers she has in her consumption bundle.(b) Bob always consumes beer and pizza in fixed proportions. Specifically, if Bob has 1 pizza, he consumes precisely 2 beers and additional beers represent no additional utility for Bob. Similarly, if Bob has 2 beers, he consumes precisely 1 pizza and additional pizzas represent no additional utility for Bob. In addition, when Bob has 4 pizzas and 10 beers, his utility is 32.(c) Kathy loves pizza and is neutral toward beer (i. e., she neither likes nor dislikes beer). She derives 4 units of satisfaction from each pizza she consumes.

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Write down the equation of a utility function and draw an indifference curve that corresponds to eac...