Question

Abhishek's utility function is:
U = min (2x - y, 2 y - x}
Which letter resembles Abhishek's indifference curves the most?
A. L
B. U
C. V
D. W​

Answer 1

L will be the indifference curves the most.

Answer 2

The indifference curve will resemble L letter (Option A)

Explanation:

Given: U = min(2x-y , 2y -x)

To find: letter resemblance with curve

Find:

Graph indifference curve for U=12 ( Can try hit and trial method)

For Y

2X - Y = 12

Y = 2X-12

In second equation

2Y - X = 12

2Y = 12 + X

Y = 6 + (1/2) X

Graph these equations

Y = 2X-12

Y = 6 + (1/2) X

For x=12, it will satisfy the equation

In first eq x=6 , y= 9

       second equation x=7 , y = 2

After plotting the graph, The indifference curve will be in L letter