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Assume that Dr. Slight has $300 to spend on goods X and Y. Good X costs $5 per unit and Good Y costs $3 per unit. Dr. Slight combines X and Y using a very strict ratio to derive utility. He can only increase his level of wellbeing by receiving more of both goods according to this ratio.
A. You observe Dr. Slight’s behavior and notice that all of the following consumption bundles (X,Y) seem to leave Dr. Slight at the same level of wellbeing: (1,1), (1,2), (1,3), (2,1), and (3,1). What type of preferences does he likely have over X and Y?
B. Given Dr. Slight’s current income and preferences what is his optimal bundle?
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