Many thanks. W. Norton & Company â¢ New York â¢ London 2. The solution to this is u(x) = x1âr /(1 â r) for r = 1and u(x) = ln x for r = 1.11.3 We have seen that investment in a risky asset will be independent ofwealth if risk aversion â¦ You can check your reasoning as you tackle a problem using our interactive solutions viewer. Jonesboro will have secured onto the exterior. University. Varian, microeconomic analysis, solution book Description : Hal Varian's advanced level microeconomics textbook, suitable for third year or postgraduate students, now appears in a thoroughly revised third edition. 6 x y Figure 3 Graph to Exercise A2 26 11 2 Consumer Theory 2 Consumer Theory; Istanbul Technical University; ECON 501 - Spring 2011. Copyright©c 1992, 1984, 1978 by W. W. Norton & Company, Inc. 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