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Aconsumer'' preferences are represented by utility function

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Reference no: EM13974288

Suppose a consumer' preferences are represented by the utility function U = MIN(5X, Y).  The price of Y is PY = 1, and the consumer has income, M = 120. 

a) Graph the consumer's Price consumption curve for prices, PX = 1, PX = 3, and PX = 5.  Be sure to label your graph carefully and accurately.

b. Graph the consumer's demand curve for X.

The last tutor graphed it without saying what the points are so I was lost. So far what I think is right (am not sure) on the graph the three budget constraints are: (120,120) for Px=1, (40,120) for Px=3, and (24,120) for Px=5. I just am not sure how to find the optimal bundles for each one when Px is not equal to Py, because thats how I normally solve perfect complements. 

Reference no: EM13974288

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