Intermediate Microeconomics: Utility (Lecture 4)

University of Michigan Intermediate Microeconomics Lecture 4: Utility!

Based on Varian's Intermediate Microeconomics

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Lucy has just been promoted to a managerial position and given a new office. She is very fond of small Persian carpets and Native American paintings and wants to get some carpets and paintings for her office. Her utility function for carpets (x) and paintings
(Y)
is given by U(x, y) = √xy . Using Excel’s charting tool, draw an indifference curve for U = 4 and another one for U = 6, where both indifference curves contain 1, 2, 4, and 8 carpets on a graph, with carpets on the horizontal axis and paintings on the vertical axis.

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