Elmer’s utility function is U(x, y) = min{x, y2}.
(a) If Elmer consumes 4 units of x and 3 units of y, his utility is _____.
(b) If Elmer consumes 4 units of x and 2 units of y, his utility is _____.
(c) If Elmer consumes 5 units of x and 2 units of y, his utility is _____.
(d) On the graph below, use blue ink to draw the indifference curve for Elmer that contains the bundles that he likes exactly as well as the bundle (4, 2).
(e) On the same graph, use blue ink to draw the indifference curve for
Elmer that contains bundles that he likes exactly as well as the bundle (1, 1) and the indifference curve that passes through the point (16, 5).
(f) On your graph, use black ink to show the locus of points at which
Elmer’s indifference curves have kinks. What is the equation for this curve? ______.
(g) On the same graph, use black ink to draw Elmer’s budget line when the price of x is 1, the price of y is 2, and his income is 8. What bundle does Elmer choose in this situation?
______
(h) Suppose that the price of x is 10 and the price of y is 15 and Elmer buys 100 units of x. What is Elmer’s income? _______