Calculates the optimal consumption for a utility function of type `min`.
Author: shiroeExecutions: 386
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The min function represents a convex indifference curve with respect to the origin of the L-type.
If the inflection point lies within the budget region, the optimal consumption point is determined from among three candidate points.
If the inflection point lies within the budget region, the optimal consumption point is determined from among three candidate points.
| Optimal Consumption Quantity of x Goods | |
| Optimal Consumption Quantity of Asset Y |
R5 (2023). August 13 (Sun)_001_Pilot Version.
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We will consider the utility function u(x, y) = min(ax, by).
We will define the budget region using the budget constraint line and determine the consumption quantities of the two goods, x and y, that maximize utility.