Unformatted text preview: Each such bundle costs p x + 2p y . How many such bundles can be bought? Divide income by the price of the ‘bundle’ =m/(p x +2p y ) What if we have U= min{ 4x+y,5y} Set 4x+y=5y, or 4x=4y, or x=y decides which coordinate of the utility fn counts for the consumer If x>y, then min { 4x+y,5y}= 5y, so an indifference curve will be 5y=c , or horizontal If x<y, then min { 4x+y,5y}= 4x+y, so an indifference curve will be 4x+y=d, or y=d  4x, line with neg slope...
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This note was uploaded on 08/25/2009 for the course ECON 302 taught by Professor Toossi during the Spring '08 term at University of Illinois at Urbana–Champaign.
 Spring '08
 TOOSSI
 Utility

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