Murphy's Utility Function Is U(x, Y)= Min{4x + Y, 2x

question 41

Essay

Murphy's utility function is U(x, y)= min{4x + y, 2x + 2y, x + 4y}.Murphy is consuming 12 units of x and 6 units of y.
a.Draw the indifference curve through this point.At what points does this indifference curve have kinks?
b.The price of good x is $1.What is the highest possible price for y? What is the lowest possible price for y?

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.

Long-Term Liabilities

Refers to debts or obligations that are due in over a year's time, including loans, bonds payable, or lease obligations.

Cash Dividends

A distribution of profits by a corporation to its shareholders in the form of cash.

Operating Activities

Transactions and other events related to the day-to-day function of a business, typically involving revenue and expense activities directly affecting cash flow.