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4. Consider the following case of perfect complements, LKXI, X2) = min[2x1, X2] Assume the budget constraint, y = le + X2, with the price
4. Consider the following case of perfect complements, LKXI, X2) = min[2x1, X2] Assume the budget constraint, y = le + X2, with the price of good 2 normalized to 1. a. b. c. d. Discuss the implications of these kinds of preferences. In the perfect complements case solve for X1 and x2 as functions of p and y. Suppose y = 100. Under perfect complements is there ever a price p where a consumer chooses not to consume either good? If yes or no tell me why. Plot the indifference curves for perfect complements case for various values of y holding p xed (The easiest way to do this is to assign an arbitrary number to p and then assign different numbers for y and see how your graph changes). Label all axes correctly
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