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Marie's Utility Function Is U(x, Y)= Min{3x + 2y, 2x

question 78

Essay

Marie's utility function is U(x, y)= min{3x + 2y, 2x + 5y}, where x is the number of units of sugar she consumes and y is the number of units of spice she consumes.She is currently consuming 12 units of sugar and 40 units of spice and she is spending all of her income.
a.Draw a graph showing her indifference curve through this point.
b.The price of spice is $1.In order for this to be her consumption bundle, what must the price of sugar be and what must her income be?


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