Question

Clara's utility function u(x,y)=(x+2)(y+1). write n equation for clara's indifference curve that goes through the point (x,y)=(2,8)

Answer 1

we are given equation as

`u(x,y)=(x+2)(y+1)`

clara's indifference curve that goes through the point (x,y)=(2,8)

we can plug x=2 , y=8

`u(x,y)=(2+2)(8+1)`

`u(2,8)=36`

now, we can set it equal

we get

`36=(x+2)(y+1)`

now, we can solve for y

`(\left(x+2\right)\left(y+1\right))/(x+2)=(36)/(x+2)`

`y+1=(36)/(x+2)`

`y=(36)/(x+2)-1`..........Answer