Victor Finick Likes to Have the Same Amount of X

question 55

Essay

Victor Finick likes to have the same amount of x as he has of y. His utility function is U(x, y) = min{2x- y, 2y- x}.
a. Draw the indifference curve for Victor that passes through the bundle (0, 0) and the indifference curve that passes through (4, 4). (Hint: Each indifference curve is the intersection of two line segments.)
b. If Victor has a bundle that he likes better than (0, 0) and his consumption of both goods is doubled, is Victor better off?
c. Does Victor always prefer more of either good to less?

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Definitions:

Saturation

In color theory, describes the intensity or purity of a color; a fully saturated color has no addition of white, black, or gray.

Brightness

The perception of how light or dark a color appears; can also refer to the overall intensity of light sources.

Hue

A dimension of color that is determined by the wavelength of light; essentially, the aspect of color that is described as red, blue, green, etc.

Bipolar Neurons

A type of neuron characterized by having two extensions (one dendrite and one axon) branching from opposite sides of the cell body, commonly found in sensory systems.