Trevor always begins his day with a strawberry milkshake. He makes it by mixing milk (20) ( x 1 ) with five strawberries ( x 2 ).

Trevor always begins his day with a strawberry milkshake. He makes it by mixing milk

(20)

(

x

1

) with five strawberries (

x

2

). The secret of a really good milkshake lies in the optimal

proportion of milk and fruit: one glass always comes with five strawberries.

(a)

Plot in a diagram Trevors’ preferences. Depict three indifference curves that pass

through the following bundles (5,1), (10,10) and (15,4). What is the MRS at each

of these points?

(b)

What utility function represents these preferences?

(c)

Indicate the leve of utility corresponding to each indifference curve from your draw-

ing in part a.

(d)

Multiply your utility function by 10 and add 2 to it. How does the map of indif-

ference curves change? Explain why. How was the level of utility associated with

each indifference curve affected?

(e)

Trevor spends $100 per month on his favorite milkshake and pays $1 for a glass of

milk and $1 for each strawberry (they are organic). Find Trevor’s demand for milk

and strawberries and depict it on the graph.

(f)

The organic strawberries are replaced by genetically modified ones. These are, on

average, 2.5 times larger. Consequently, the optimal proportion of milk to straw-

berry becomes 1:2. Plot the indifference curves for milk and genetically modified

strawberries. Write down a utility function that represents them.

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10