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Suppose there are two goods X and Y. Susan's utility function is given by U(X,Y)=min(X,2Y). The price of X and Y are $2 and $4,
Suppose there are two goods X and Y. Susan's utility function is given by U(X,Y)=min(X,2Y). The price of X and Y are $2 and $4, respectively. Her total budget is $40. (1) Write down the equation for Susan's budget line. Draw it on a graph with proper labelling (put X on the horizontal axis). What is the slope of this budget line? (2) Draw three representative indifference curves, labelling your graph properly. (3) What bundle will Susan purchase? Explain and illustrate on a graph
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