Consider the following utility functions:
Q1. Explain what the relationship between a utility function and preference is.
Q2. What types of preferences U1(x1,x2), U2(x1,x2), U4(x1,x2) and U6(x1,x2) represent, respectively?
Q3. For each of the utility functions U2(x1,x2), U3 (x1,x2), and U4(x1,x2), show whether it has the same preferences as U1(x1,x2)
Q4. Suppose U5(x1,x2) and U6(x1,x2) represent the preferences for consumer E and consumer F, respectively. Determine whether each commodity x1 and x2 is an economic good, an economic bad or an economic neutral for E and F.
Q5. Do U5(x1,x2) and U6(x1,x2) represent the same preference? Explain.
Q6. For each of U3 (x1,x2), U4(x1,x2), U5(x1,x2) and U6(x1,x2) check whether they represent monotonic preferences? Explain in detail by marginal utilities.