Given the utility function U= (X1^a)(x2^B) , where a,b >0 prove that the indifference curves are convex towards the origin
Follow Math Help Forum on Facebook and Google+
The indifference curve's equation is (X1^a)(X2^b) = c for some constant c. Therefore, X2 = c' / X1^(b/a) for some constant c'. Now, the graph of any function of the form 1 / X^d for d > 0 looks similar to a hyperbola 1 / X.
View Tag Cloud