Re: ISI PEB (Economics), 2014 ANSWERS 1 TO 5..
Posted by mittar.chardikala@gmail.com on May 09, 2015; 10:19am
URL: http://discussion-forum.276.s1.nabble.com/ISI-PEB-Economics-2014-ANSWERS-1-TO-5-tp7595987p7596727.html
Hi ,
Answer to the second ques woud be a=b=10 , as these are satiation preferences. Also intuitively utitlity will be 0 at this point and everywhere else it will be negative.
Answer to its second part will be the same, bcoz these are satiated preferences.
Please correct me if I am wrong