# Questions tagged [perfect-complements]

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### How do we show mathematically that the lump sum principle does not apply to perfect complements?

I want to show mathematically that the lump sum principle does not apply to perfect complements. I was able to show it applied with a specific Cobb-Douglas utility function, but I am not sure how to ...
177 views

### General Equilibrium: Two Consumers with Perfect Substitutes and Perfect Complements Utility Functions

I am attempting to solve a general equilibrium in pure exchange economy problem where the first consumer has an endowment of $(3, 4)$ and a utility function of $U(x) = 3x + 5y$. The second consumer ...
72 views

### Perfect complements indifference curve

What would be the I.C of this function? $u(x,y)=\min(x,√y)$ I understand since it is a perfect complements case it should be "L" shaped but I wanted a more detailed graph.
91 views

### What is the reason behind the demand function of a perfect complement good?

so I know that usually the income curve is equal to: $$x_1p_1 + x_2p_2 = m$$ if we rearrange this equation we get that the demand for good one ($x_1$) is equal to: $$x_1 = \frac{m-x_2p_2}{p_1}$$ None ...
73 views

### Consumer Preference when Consumer only consumes $A$ or $B$

Let's say Sally either wants to coke or pizza, but never both. I am aware of the standard consumer preferences, such as Perfect Complements as well as Perfect Substitutes. But I have never heard ...
7k views

### hicksian demand of perfect complements [closed]

As the title states, I want to know how to derive the hicksian demand of perfect complements $\text{min} \, \{x1,x2\}$. Thanks in advance. Also, no price is given, or budget. my main question is ...
1k views

### Unusual perfect complements utility function min{ax+y, x+2y} [closed]

What's the graph for this utility function? How can it be represented graphically? Is this function perfect complements? I do not fully understand that in the question attached in the picture, the ...
3k views

### Relationship between convexity and a perfect complements type utility function

Consider someone who consume two goods and hates them both. Given the utility function: U(x,y)= -max{x,y} 1.What would be the shape of the indifference curve? 2.Why are these preferences weakly ...
90 views

### Elasticity of substitution meaning

If I computed an elasticity of substitution of f.e. 0.9 between capital and labour, does this implicate that the factors are rather well substitutable or not? Since for 0 they are perfect complements ...
1k views

### Perfect complement graph and isoquant

$f(x_1,x_2) = min \{x_1,x_2\} + x_2$ if that was the production, what would the isoquant be? Would it simply follow $x_1 = x_2$? I'm not entirely sure what it the graph would look like.