Victor Finick Likes to Have the Same Amount of X

question 45

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:

Negotiators

Individuals engaged in negotiation, working towards reaching agreements or resolving disputes between parties.

Appropriate

Suitable or proper in the context of the circumstances or requirements.

More Power

The possession of greater authority, influence, or strength compared to another individual, group, or entity.

Abuse Power

The misuse of one's position of authority or control to harm, exploit, or unfairly disadvantage others.