Leontief Preferences
Definition
Perfect complements: the consumer uses goods in fixed proportions. Utility = min(αx, βy). L-shaped indifference curves.
Example
Left and right shoes: one extra of either alone gives zero extra utility.
Perfect complements: the consumer uses goods in fixed proportions. Utility = min(αx, βy). L-shaped indifference curves.
Left and right shoes: one extra of either alone gives zero extra utility.