Monotonic transformation of some consumer-s utility function


a) Define what do you mean by monotonic transformation of some consumer's utility function: u(x1, x2)

b) Assume u(x1, x2) = 3x1+2x2.Sketch indifference curves for this consumer corresponding to utility levels 10, 20 and 30.

c) Assume u(x1, x2) = x1+x2. Draw indifference curves for this consumers corresponding to utility levels 10, 20, 30.

d) Can these two utility functions be said to explain same preferences: Is function in monotonic transformation of function in (c). Describe.

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Microeconomics: Monotonic transformation of some consumer-s utility function
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