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 2 years agoRelated Solutions
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Amy has the utility function U=min(2x+y, x+2y) for goods x and
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2) Draw Amy's typical demand curve for good x.
(a) If your utility is represented by u(x,y) = min(x+2y,2x+y);what do you indifference curves look like?...
(a) If your utility is represented by u(x,y) =
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(b) Given your answer in (a), obtain the MRS (marginal rates of
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(c) Suppose the prices of x and y are px = $3 and py = $1 and
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(d) If px decreases to $1; what would you choose?
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An individual has the utility function u = min (x, y). His income is $ 12....
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Ella’s preferences can be represented by the utility
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$10 and the price of y is $15, how much money would she need
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bundle (10, 25).
Select one:
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(a) If your utility is represented by u(x; y) = min(x+2y; 2x+y);what do your indi¤erence curves...
(a) If your utility is represented by u(x; y) = min(x+2y;
2x+y);what
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(b) Given your answer in (a), obtain the MRS (marginal rates of
sub-
stitution).
(c) Suppose the prices of x and y are px = $3 and px = $1 and
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(d) If px decreases to $1; what would you choose?
(e) Use the Slutsky decomposition to decompose the total price
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into the...
(a) If your utility is represented by u(x; y) = min(x+2y; 2x+y);what do your indi¤erence curves...
(a) If your utility is represented by u(x; y) = min(x+2y;
2x+y);what do your indi¤erence curves look like?
(b) Given your answer in (a), obtain the MRS (marginal rates of
sub- stitution).
(c) Suppose the prices of x and y are px = $3 and px = $1 and
you have 100 dollars. What would you choose?
(d) If px decreases to $1; what would you choose? (e) Use the
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PROVIDE EXPLANATION 2. Elmer’s utility function is U(x, y) minx, 5y. If the price of...
PROVIDE EXPLANATION
2. Elmer’s utility function is U(x, y) minx, 5y. If the
price of x is $25, the price of y is $10, and Elmer
chooses to consume 5 units of y, what must Elmer’s income be?
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A consumes two goods, x and y. A ’s utility function is given by u(x, y)...
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represented by the utility function u(x,y) = min{x,y}.
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