# Consumer Theory Notation

Please open the attached word file to view the notations.

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?

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

#### Solution Preview

Please see the attached file.

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.