Re: Indifference curves for utility functions of form min(ax+by, cx+dy)

Posted by s on Jun 08, 2012; 9:15am
URL: http://discussion-forum.276.s1.nabble.com/Indifference-curves-for-utility-functions-of-form-min-ax-by-cx-dy-tp7577527p7577569.html

hey vikram you are right i have jus mentioned how to find the ratio in which goods are consumed but to find out the optimum bundle the price ratio matters and you follow this exact rule
x = M/(p(x)+p(y))  if p(x) < p(y)
   = [0, M/(p(x)+p(y))]  if p(x) = p(y)
   = 0 if p(x) > p(y)