Utility Functions and Indifference Curves: Getting Into the Consumer’s Head
Utility Functions and Indifference Curves: Getting Into the Consumer’s Head. A utility function indicates how a consumer orders different bundles of goods: bread, eggs, wine. Suppose U(b,x,y) = 3b + 2x + 1y then U(1,4,6) = 3 + 8 + 6 = 17
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