S 2

2. Jackson's preferences for goods X and Y can be represented by the utility function, U(X,Y) = min(3X, 0.5Y). a. If you give Jackson one more unit of Y, you need to give him at least additional units of X to be better off. (4 points) b. Jackson's budget line is 6X + 9Y = 120. Determine and graphically depict his utility maximizing bundle given this budget constraint. (8 points) c. Will Jackson ever choose a corner solution? Explain why or why not. Then write down an example of a utility function that will always result in a corner solution. (I want a mathematical equation here, not a name.) (6 points)