<p>Suppose I have a utility function of Cobb-Douglas form </p>

<p><span class="math-container">$$U(x, y) =x^{0.2}*y^{0.8}$$</span></p>

<p>I want to describe it in words. I would say like:</p>

<blockquote>
  <p>The utility of consumer is captured by number of good x and number of good y. The
  indifference curve is downward sloping and convex, which means the
  marginal rate of substitution is diminishing as x increases. The
  consumer prefer y to x since y gives a higher utility level.</p>
</blockquote>

<p>Is this correct and conprehensive?
Any help will be appreciated. </p>

<microeconomics><utility><preferences>
How to describe a utility function in words?
Alex
# How to describe a utility function in words?

(Asked by: username_0 on 2020-04-03)

Suppose I have a utility function of Cobb-Douglas form

$$U(x, y) =x^{0.2}\*y^{0.8}$$

I want to describe it in words. I would say like:

> The utility of consumer is captured by number of good x and number of good y. The
> indifference curve is downward sloping and convex, which means the
> marginal rate of substitution is diminishing as x increases. The
> consumer prefer y to x since y gives a higher utility level.

Is this correct and conprehensive?
Any help will be appreciated.

**Tags:** microeconomics, utility, preferences

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## 0 answers

