consumer behaviour

[priyal]

How to find denad in this case?
a) u(x,y)= min {2x+1,x+y,2y+1}
               px=py=1
               total income=2

b) u(x,y)= x+y,            
            = 2(xy)^(1/2)
               px=py=1
               total income=2

c) u(x,y)= min {x+y,2y}
               px=py=1
               total income=2

d)u(x,y)=max{x,y}
             px=py=1
             total income=2

Note: (xy)^(1/2) is read as "square root" of xy.

[duck]

a) x=[0.5 , 1.5]
    y=[1.5, 0.5]

b)case of perfect substitues.. and price ratio is 1 implying indifferent between x and y

cobb douglas: use MRS = price ratio condition and then plug it into budget line to get the optimal bundles.

c) x=[0,1]
    y=[2,1]

d) max function: so he will either consume x or y

Hint: plot IC for better understanding.

Note: [a,b] means anything between a and b or equal to a or equal to b