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Category > Economics Posted 19 Jun 2017 My Price 5.00

Esteban likes both chocolate ice cream and lemon sorbet

Esteban likes both chocolate ice cream and lemon sorbet. His preferences correspond to the utility function U(C, S) C1/3S2/3, where C stands for ounces of chocolate ice cream and S stands for ounces of lemon sorbet. Write a formula for Esteban’s family of indifference curves. Plot some of those curves on a graph. Would Esteban rather have four ounces of chocolate ice cream and two ounces of lemon sorbet or two ounces of chocolate ice cream and four ounces of lemon sorbet?

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Alpha Geek
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Status NEW Posted 19 Jun 2017 11:06 AM My Price 5.00

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file 1497871915-Answer.docx preview (38 words )
A-----------nsw-----------er:----------- To----------- co-----------rre-----------lat-----------e t-----------he -----------two----------- av-----------ail-----------abl-----------e b-----------und-----------les----------- fo-----------r E-----------ste-----------ban-----------, w-----------e j-----------ust----------- re-----------qui-----------re -----------to -----------det-----------erm-----------ine----------- th-----------e u-----------til-----------ity----------- he----------- ge-----------ts -----------fro-----------m e-----------ach----------- an-----------d e-----------ver-----------y b-----------und-----------les-----------. U-----------(C,----------- S)----------- = -----------C11-----------3S2-----------13 -----------U(4-----------, 2-----------) =----------- 41-----------/32-----------2/3----------- = -----------(1 -----------.58-----------7)(-----------1 .-----------587-----------) =----------- 2 ----------- -----------
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