Re: Micro economics question

Posted by Rautparul on Jan 17, 2017; 10:52am
URL: http://discussion-forum.276.s1.nabble.com/Micro-economics-question-tp7603077p7603085.html

3.20

It is a kinked indifference curve.
(Avacado, Grapefruit) = (11,23) (19,y)
Both these points are on same indifference curve.
Along with these points, there will be a bundle say (p,p) such that it lies on x=y line.

Plot graph being grapefruit on Y-axis and Avacado on X-axis.

This (p,p) will satisfy both the slopes.

slope = (y2-y1)/(x2-x1)

a) between (11,23) and (p,p)
   -2 = 23-p/11-p
    p= 15
    kinked point (15,15)

b)between (15,15) and (19,y)
   -1/2 = y-15/19-15
    y = 13

I am assuming this to be a correct approach. But if there is any other method, then please share.