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Consumer purchase food to consume but food creates garbage. No consumers acquire garbage directly. Consider how this factor influence the quantity of goods purchased and consumed.
A consumer has a budget, B which is used to purchase food, F and other goods, Y. The price of food is Pf and price of goods is Py.
This consumer’s utility function is given by:
U=U (f,g,y)
Where g is the garbage produced as food is aquired and consumed. While f and y contribute positively to utility, not so of garbage which provides disutility to the consumer.
One pound of food produces one-half pound of garbage, so that:
g=f/2
a. Draw an indifference curve between g and y. How would this curve be used to define a position of consumer equilibrium, if ever?
b. With free garbage disposal, define the point of consumer equilibrium which determine the quantity of food which is purchased.
后面还有还好几问，请教大家怎么画这个图，或是介绍一些资料给我参考以下阿，谢谢啦
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