You are on page 1of 3

X Y

Burger Hotdog Utility


A 2 8 4 √ (2x8) Indifference
B 4 4 4 √(4x4) 9
C 8 2 4 (2x4) 8
7
6
5
MRS (AB) -2 (4-8)/(4-2) 4
MRS (BC) -0.5 (2-4)/(8-4) 3
2
1
0
1 2 3 4

Rise = 8-4
Run = 4-2

X Y Chart Title
Candy Bread Utility 18
A 16 4 8 16
14
B 8 8 8 12
10
C 4 16 8 8
6
4
MRS (AB) -0.5 2
MRS (BC) -2 0
2 4 6 8 10

Rise = 16 -8
Run = 8-4
MRS is computed by getting the quotient of
Indifference Curve for Gab or simply Rise/Run
(Y2-Y1)/(X2-X1)

2 3 4 5 6 7 8 9 Utility
Square root of the product of xy

Chart Title

4 6 8 10 12 14 16 18
d by getting the quotient of Rise and Run

he product of xy

You might also like