Suppose a consumer views two goods, X and Y, as perfect complements
Question # 00694826
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Updated on: 06/05/2018 11:48 AM Due on: 06/05/2018
Suppose a consumer views two goods, X and Y, as perfect complements. Her utility function is given by U = MIN [2X, Y]. Sketch the graph of the consumers indifference curve that goes through the bundle X = 7 and Y = 8. Put the amount of Y on the vertical axis, and the amount of X on the horizontal axis. Which of the three assumptions that we made about consumer preferences is violated in this case?
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Solution: Suppose a consumer views two goods, X and Y, as perfect complements