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Utility Maximizing Consumption Bundle: Perfect Complements

Last modified by
on
Jun 9, 2023, 7:35:11 PM
Created by
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Jul 6, 2016, 2:49:36 PM
`u(x, y) = min{ax, by}::: P_x\x + P_y\y = Y`
`(a)"Fixed Utility Coefficient for Good X."`
`(b)"Fixed Utility Coefficient for Good Y."`
`(px)"Price of Good x"`
`(py)"Price of Good y"`
`(Y)"Consumer's Income Level"`

The Utility Maximizing Consumption Bundle: Perfect Complements calculator computes the x and y based on the Fixed Utility Coefficients for Goods X and Y, their prices and the consumer's income level.

INSTRUCTIONS: Enter the following:

  • (a) Fixed Utility Coefficient for Good X
  • (b) Fixed Utility Coefficient for Good Y
  • (Px) Price of Product X
  • (Py) Price of Product Y
  • (Y) Consumer's Income Level

Utility Maximizing Consumption Bundle(x* and y*):  The calculator returns the parameters.

The Math / Science

The formula for Utility Maximizing Consumption Bundle: Perfect Complements is:

  x* = y/(px+py*a/b)
  y* = y/(px*b/a+py)


Production, Consumption and Optimization Calculators


This equation, Utility Maximizing Consumption Bundle: Perfect Complements, is used in 2 pages
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