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    Consumer Theory Notation

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    Question
    Let a consumer have the following utility function.
    (a) Sketch some indifference curves of the consumer. Find the marginal rate of substitution (MRS) at any vector of goods x=(x1,x2) and explain the relationship between the indifference curves and the MRS.
    (b) Set up the consumer's utility maximization problem and find the demand at any given vector of prices p = (p1,p2)>>0 and income M>0. Are the goods normal or inferior?

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    https://brainmass.com/economics/utility-demand/consumer-theory-notation-182560

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    Question: Let a consumer have the following utility function: .
    (a) Sketch some indifference curves of the consumer. Find the marginal rate of substitution (MRS) at any vector of goods x=(x1,x2) and explain the relationship between the indifference curves and the MRS.
    For ...

    Solution Summary

    The expert examines consumer theory notation. The indifference curves of the consumer are determined.

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