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X1 and X2 are perfect complements and these 2 goods must be consumed at the scale of X2 = 5X1 (if he buys 1 X1
- X1 and X2 are perfect complements and these 2 goods must be consumed at the scale of X2 = 5X1 (if he buys 1 X1, he must buy 5 X2) where X1 is located on the x-axis. Plot the indifferent map to show.
- Following 3, consumption sets (X1, X2) including (5; 1), (10; 10), and (15; 4) have passed through the indifference curves and located on the horizontal section of the curves. Show them in the diagram.
- Following 4, if the utility function U(X1, X2) = min(5X1, X2), show the utility value of the 3 sets as stated in Q4.
- Following 5, if the new utility is U(X1, X2) = min(X1, 1/5X2), re-calculate the utility level of the 3 sets as stated in Q4.
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