Mary Granola's utility function is U(x, y)= min{x + 2y, y + 2x}.Mary maximizes her utility subject to a budget constraint.If she chooses the bundle (5, 6), then the price of x must be exactly twice the price of y.

Question

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The indifference curve for the bundle (5, 6) is given by the equation x + 2y = y + 2x, which simplifies to x = y. This means that Mary is indifferent between any bundle on the line x = y. The budget constraint is given by the equation px + py = I, where p_x is the price of x, p_y is the price of y, and I is Mary's income. If Mary chooses the bundle (5, 6), then the budget constraint must be tangent to the indifference curve at that point. This means that the slope of the budget constraint must be equal to the slope of the indifference curve at that point. The slope of the indifference curve is 1, so the slope of the budget constraint must also be 1. This means that p_x = p_y, which is equivalent to the statement that the price of x must be exactly twice the price of y.

Mary Granola's Utility Function Is U(x, Y)= Min{x + 2y