micro doubt!!!!

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micro doubt!!!!

arohigupta
1.For a quasilinear utility function the income effect of one of the commodities is
a)one
b)zero
c)infinity
d)indeterminate


2.Suppose a comsumer's preferences are given by the utility function U=4(root x1)+x2.Suppose the consumer's original equilibrium was x1=9 and x2=10. If the consumption of x1 reduces to 4,how many units of x2 must he consume to remain on the same indifference curve?
a)10
b)8
c)14
d)5

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Re: micro doubt!!!!

neha:)
1. b) zero
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Re: micro doubt!!!!

hoouin
In reply to this post by arohigupta
2nd question's answer
c)14
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Re: micro doubt!!!!

arohigupta
thanx :)

but please can you tell me the how you solved it?