Andrea loves to eat burritos with hot sauce. In fact, she cannot enjoy a burrito (B) unless

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Andrea loves to eat burritos with hot sauce. In fact, she cannot enjoy a burrito (B) unless it has three servings of hot sauce (H). She gets no additional enjoyment from more than three servings per burrito. Thus, her utility function is U = min{B, 1/3 H}. Graph Andrea’s indifference curves for U = 1 and U = 2.
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Microeconomics

ISBN: 9781464146978

1st Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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