You will remember Harry Mazzola, who consumes only corn chips and french fries. Harry€™s utility function is u(x1, x2) = min{x1 + 2x2, 2x1 + x2} where x1 is his consumption of corn chips and x2 is his consumption of french fries.
(a) On the graph below, use black ink to draw in the indifference curve along which Harry€™s utility is 6. Use red ink to draw the budget line for
Harry if the price of corn chips is p1 = 3, the price of french fries is p2 = 2, and income is m = 10. How many units of corn chips and how many units of french fries should he consume to maximize his utility subject to this budget? ____________.
(b) On the graph below use blue ink to draw Harry€™s budget line if the price of corn chips is 1, the price of french fries is 3, and Harry€™s income is 6. How many units of corn chips and how many units of french fries will Harry consume? _______________.

(c) At what prices will Harry consume only corn chips and no french fries? _________ At what prices will he consume only French fries and no corn chips? __________
(d)At what price-income combinations does Harry choose to consume equal quantities of corn chips and french fries? ______________________.

Transcribed Image Text:

French fries Blue lines 6 Blackline 4 Red Blue lines +--Pencil line 4 Corn chips