4) A consumer’s utility function is u(x, y) = min{x, 3y} (a) Find the consumer’s optimal...

Question

Question

4) A consumer’s utility function is

u(x, y) = min{x, 3y}

(a) Find the consumer’s optimal choice for x, y as functions of income I and prices px,py.
(b) Sketch the demand curve for y as a function of other price px when py = 10, I = 100.

Suggestion: a picture showing the budget set, optimal choice and indifference curve.

(I need help with the sketching which is the second part)

business economics

Answer 1

Answer #1

3並 10o 10 o 二 100 Demand jor Cvodd

Answer 2

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