microeconomics question

[sunny2009]

i need help regarding how to solve this..........
        anita spends all her pocket money on 2 goods-chocolates{x} and icecream{y}.her utility function is min{4x,2x+y}.she buys 15 chocolates and 10 icecreams.the price of a chocolate is Rs.10. what is her pocket money?

[duck]

Hi Sunny.. :)

First plot the IC curve.
You'll see (15,10) lies on the line 2x+y.
A consumer will consume on that line(2x+y) only when his budget line coincides with that line.
Therefore, px/py=2
since, px=10 So, py=5
We know, x*px +y*py =M
15*10 + 10*5 = 200


Or, If you dont want to plot IC , then just put x=15 and y=10 in the utlity function.
U=2x+y if (x,y) = (15,10)
Therefore, Slope of budget line must be the same as 2x+y (as he is consuming both the goods)
and then follow the same way.

[sunny2009]

hello Duck....
        thank u so much 4 ur quick reply..i was also thinking along d same lines,but was not feeling confident..i have some more questions to ask,which i will post soon..

[sunny2009]

hello duck.....:)
 please help me regarding this question............
                    IF supply and demand curves are both upward sloping and they intersect in the nonnegative quadrant then....which of the following is true???
a.the equilibrium does not exist.
b.the equilibrium exists but is alwayz unstable.
c.the equilibrium exists and is stable if the demand curve intersects d supply curve from below.
d.the equilibrium exists and is stable if the demand curve intersects d supply curve from above
                            i m completely clueless about this question!!!

[s-2]

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[sunny2009]

hello shreya..:)
            thank u so much 4 ur quick reply and for ur genuine help.i have understood d concept behind it.