Let's revisit Kinko's problem familiar to us from previous assignments. Kinko spends all his money on whips and leather jackets. Now, Kinko's utility function is U(x, y) = min{rtyt,+y}, where x is his consumption of whips and y is his consumption of leather jackets. Kinko is consuming 4 whips and 16 leather jackets. The price of whips is $6. Find Kinko's income. Make sure to draw Kinko's indifference curves and budget line to show your answer.

Let's revisit Kinko's problem familiar to us from previous assignments. Kinko spends all his money on whips and leather jackets. Now, Kinko's utility function is U(x, y) = min{rtyt,+y}, where x is his consumption of whips and y is his consumption of leather jackets. Kinko is consuming 4 whips and 16 leather jackets. The price of whips is $6. Find Kinko's income. Make sure to draw Kinko's indifference curves and budget line to show your answer.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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