U = min(2x + y, x + 2y)

[@miramsameed1984]

Great explanation dude.. these are called Allen substitutes I guess. loved it

[@durgaprasadsarangi5668]

I'm always watching your video sir

[@EconomicsinManyLessons]

Thank you!

[@mifi7130]

Thanks! Great explanation

[@rajabhisaragarwal7285]

Thank you for this

[@jerryzhang6149]

why is the indifference curve consists of the red above the blue and the blue above the red?

[@EconomicsinManyLessons]

Let's look at the red line above the blue line. Find a point on the blue line below the red line, say, X = 2 and Y = 5. Plug these values into the utility function U = min(2x + y, x + 2y) to get U = 9. Note that U = 9 is less than U = 12, so X = 2 and Y =5 is not a point on the U = 12 indifference curve.

[@jerryzhang6149]

@@EconomicsinManyLessons that makes sense!

[@sachinsharma-jh2zw]

@@EconomicsinManyLessons Thanks for the example but intuitively it feels like the indifference curve should first consist of the blue line and then red because the utility is a min function(so i choose the graph below), so is there a general way to understand it?

[@alumi9818]

Would you explain why does this utility function have elements of both perfect substitutes and complements?

[@EconomicsinManyLessons]

The marginal rate of substitution is constant on two sections of the indifference curve, like perfect substitutes. At the kink of the indifference curve, the marginal rate of substitution is undefined, like perfect complements.

[@olumcul4970]

econ207 :P