Draw a diagram showing rays indifference curves

Reference no: EM133491811

Ray Starr has the utility function U(x, y) = y/(100 - x).

Question 1. Draw a diagram showing Ray's indifference curves corresponding to the utility levels U = 1/2, U = 1, and U = 2.

Question 2. If the price of x is $1 and the price of y is $1, find Ray's demand for x as a function of his income and draw a diagram showing his Engel curve for x.

Reference no: EM133491811

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