Outline for Thurs, July 17
 Remember
   Homework due Monday
   Quiz on Tuesday – NEW SCHEDULE
 Review from Thursday
Mapping utility
 We can change the utility function by
   Raising it to any power
   Multiplying it by a positive number
Mapping utility
 We can change the utility function by
   Raising it to any power
   Multiplying it by a positive number
 ...
Mapping utility
 We can change the utility function by
   Raising it to any power
   Multiplying it by a positive number
 ...
July17
July17
July17
July17
July17
July17
July17
July17
July17
July17
July17
July17
July17
July17
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July17

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July17

  1. 1. Outline for Thurs, July 17 Remember Homework due Monday Quiz on Tuesday – NEW SCHEDULE Review from Thursday
  2. 2. Mapping utility We can change the utility function by Raising it to any power Multiplying it by a positive number
  3. 3. Mapping utility We can change the utility function by Raising it to any power Multiplying it by a positive number This will change the MU, but not the MRS or indifference map
  4. 4. Mapping utility We can change the utility function by Raising it to any power Multiplying it by a positive number This will change the MU, but not the MRS or indifference map U = 3X+Y V = (3X+Y)4 Ü = 100(3X+Y)4

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