Answer to Question #236457 in Microeconomics for Evans

Question

Assume an individual’s preference for Fanta (Good x) and Fritters (Good y) are given by

the following utility function: U(x,y)=130= 3𝑥2 + 3𝑥𝑦 + 9𝑦

REQUIRED:

i) Derive the equation for the indifference curve for this utility function

Answer 1

IC =>

$3x^2 + 3xy + 9y = 130 \\ 3y(3+x) = 130 -3x^2 \\ y = \frac{130-3x^2}{3(3+x)}$