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2. Suppose that there are two goods, apples and oranges, One utility function that was mentioned in the lecture but not analyzed in detail is

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2. Suppose that there are two goods, apples and oranges, One utility function that was mentioned in the lecture but not analyzed in detail is the perfect complements case where u(m,y) : min{:1:, y}, where the min operation chooses a: if a: S y and chooses y if y S :12. For example, if :1: = 6 and y = 8, then u(6, 8) = 6. Let pm be the per unit price of apples, py be the per unit price of oranges, and I be the income of the consumer. (a) Consider the bundle with 5 apples and 5 oranges. Because of how the utility function is dened, the consumer is indifferent between the bundle with 5 apples and 5 oranges and any bundle with 5 apples and y oranges with y 2 5. Similarly, the consumer is indifferent between the bundle with 5 apples and 5 oranges and any bundle with x apples and 5 oranges with x 2 5. Based on this information, on a graph with :1: as the horizontal axis and y as the vertical axis, draw the indifference \"curve\" that goes through (5, 5). (b) Explain why when considering the utility maximization problem, the consumer should buy the same number of apples and oranges. (Hint: Suppose that the consumer chooses 1 more apple than oranges. Can this consumer do better?) (0) Using the fact in (b), derive the demand function for both apples and oranges in terms of pmpy

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