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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?


Definitions:

Associating New Items

The cognitive process of linking new information with existing knowledge.

Autobiographical Memory

The aspect of memory that involves the recollection of personal experiences and events from one's own life.

Family Stories

Narratives shared within a family that recount significant events, relationships, or history of the family members.

Unconscious Memories

Memories that are not within one's conscious awareness, often influencing behaviors and decisions without one's realization.

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