Questions tagged [perfect-complements]
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utility functions of perfect complements
if preferences are described and in this case the preferences are perfect complements, we want to find an utility function that describes the preferences so we can draw an indifference curve. the ...
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Relation between complements and substitutes (for multiple goods)
I am a little bit curious about the following problem:
If we have multiple goods (at least 3 or more)... And we know that $x_1$ and $x_2$ are substitutes and $x_1$ and $x_3$ are also substitutes, does ...
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Homogeneity of compensated demand for Leontief (perfect complements) function
In my assignment I have a Leontief (perfect complements) function u(x,y)=min(x,2y). Keeping utility fixed, we minimize the expenditure. Since we have a Leontief function, at a fixed level of utility u(...
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A utility function (neither perfect substitues nor perfect complements) which stems from a CES f. and leads to gross complements or gross substitutes
So the most prominent preferences are perfect substitutes, perfect complements and cobb-douglas preferences. Perfect complements and perfect substitutes are extreme cases and I was asked whether there ...
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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 ...
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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.
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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 ...
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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 ...
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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 ...
user19452
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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 ...
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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 ...
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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 ...
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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.
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Can a complement good be free or have a fixed cost?
I was not around at this time but I know roads(existing for bikes) and gas(existing for tractors) were complements for cars.
I was looking at complements for computers and noticed the ARPANET could ...
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Income effect for complements
Suppose u(x,y)=min(x,2y)
and the price of X is 1, the price of Y is 1 and income is $12. If the price of X increases to 2, the income effect is supposed to be -1.
I keep getting zero for some reason. ...
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Optimal consumtion bundle of lemons and sugar [closed]
Alex consumes only lemons and sugar. For each lemon he requires exactly 2 spoons of sugar. He doesn't like more sugar on his lemons, and he won't eat lemons with less sugar. What is Alex's optimal ...
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Doubt regarding Walrasian equilibrium with complements for both agents
There are two goods $1,2$ and two agents $ 1,2 $. Both have the utility function $ u_{i}=\min({x_{1i},x_{2i}}) $ for agent $i$ .The endowments are $(1,3)$ and $(3,1)$ for agent $1$ and $2$ ...
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Perfect Complements - Walrasian Equilibrium
For a homework , I struggled to solve the following question but couldn't go further:
endowment of person 1 = (30,0)
endowment of person 2 = (0,20)
utility ...
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Do perfect complements have to be normal goods? If so, why?
Two goods $x,y$ are perfect complements if they have the utility function
$$U(x,y) = \min \lbrace ax,by \rbrace $$
$$a,b \in \Bbb{Q}^+$$
My professor said $x,y$ have to be normal goods but didn't ...
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Basic microeconomics: supply, demand and substitutes in production
The question is: explain the change in the market for skim milk, if demand for ice cream rises.
I'd say these two are unrelated in consumption (saying they're substitutes is kind of stretching it), ...
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Perfect complement preferences in an exchange economy
So I have an exam in a bit, I understand that to find the optimal choice you have to equate tangent of the two indifference curves. However, if the other indifference curve is a perfect complement, ...
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Pure exchange economy with two consumers and non differentiable utility functions
We have a pure exchange economy, two consumers $A,B$ and two goods $x,y$. The utility functions are as follows $$u_A=\min\{x_A,y_A\}\qquad u_B=\min\{x_B,\sqrt{y_B}\}$$
The endowments are $$\omega_A=(...
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