6. Ann's preferences are given by u(x, y) = min (2x, 6y}. a) Prices are p....

 

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6. Ann's preferences are given by u(x, y) = min (2x, 6y}. a) Prices are p. = 6 and p, =9. Ann has a budget of $90. Find her optimal consumption bundle and determine her utility. Plot the situation. b) Can you find a bundle where x=5 and the utility is the same as in a)? If so, what is it? If no, why not? c) Can you find a bundle where x=15 and the utility is the same as in a)? If so, what is it? If no, why not? d) Is it possible to get the same optimal consumption bundle as in a) if p, 9 and p, = 6? If so, how? If no, why not? e) Can the same optimal consumption bundle as in a) be achieved for any other prices? If so, how? If not, why not? Explain and illustrate. 6. Ann's preferences are given by u(x, y) = min (2x, 6y}. a) Prices are p. = 6 and p, =9. Ann has a budget of $90. Find her optimal consumption bundle and determine her utility. Plot the situation. b) Can you find a bundle where x=5 and the utility is the same as in a)? If so, what is it? If no, why not? c) Can you find a bundle where x=15 and the utility is the same as in a)? If so, what is it? If no, why not? d) Is it possible to get the same optimal consumption bundle as in a) if p, 9 and p, = 6? If so, how? If no, why not? e) Can the same optimal consumption bundle as in a) be achieved for any other prices? If so, how? If not, why not? Explain and illustrate.