Question
In: Economics
sketch two indifference curves for people with each of the following utility function U(x,y) = min...
sketch two indifference curves for people with each of the following utility function U(x,y) = min {x+2y,3y}
Solutions
Expert Solution
we have U(x, y) = min(x+2y, 3y)
The corner points of the L-shaped indifference curves are when (indifference curves of complementary goods are L-shaped):
x + 2y = 3y
=> x = y
Thus, two indifference curves are shown as below:
Rahul Sunny answered 1 year agoRelated Solutions
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An individual has the utility function u = min (x, y). His
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MUX=Y
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Instructions: Enter
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X =
Y =
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