John has the utility function U(x1,x2) = min{x1 +2x2 , 2x1+x2}. He has 90Ł to spend on beef and lamb. If the price of beef is 10Ł per unit and the price of lamb is 40Ł. a) Draw the budget curve and indifference curves. b) What will be the ordinary demand of John?

John has the utility function U(x1,x2) = min{x1 +2x2 , 2x1+x2}. He has 90Ł to spend on beef and lamb. If the price of beef is 10Ł per unit and the price of lamb is 40Ł. a) Draw the budget curve and indifference curves. b) What will be the ordinary demand of John?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 5SQP

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