Explore BrainMass
Share

Explore BrainMass

    Intermediate Microeconomics Diagrams and Equations

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Carol consumes two goods, x and y, with respective price p_x and p_y. Carol's utility function is given by u(x,y)=Min{2x+y,2y}. Carol's income is 84

    On a diagram where the horizontal axis indicate the number of x and the vertical axis indicate the number of y, draw Carols's indifference curves for utility levels 30 and 40, label them as IC_30 and IC_40, respectively. On your graph, label the kink point of IC_30 bundle A and label the kink point of IC_40 as bundle B. What are the coordinates of A and B?

    I would also like to be taught how to write the equation of the line that passes through all kink points please.

    Im unsure about how to draw the graph so I dont know how to obtain the values of the coordinates and would like to know how to get the equation. Your help is greatly appreciated.

    © BrainMass Inc. brainmass.com October 10, 2019, 4:47 am ad1c9bdddf
    https://brainmass.com/economics/utility/intermediate-microeconomics-diagrams-equations-476505

    Solution Preview

    See attached excel file. To answer your question, since the utility function is a ...

    Solution Summary

    The expert examines intermediate microeconomics diagrams and equations.

    $2.19