3D Visualization
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Total Utility
0.0
โš ๏ธ UNAFFORDABLE! Over Budget!
๐ŸŽ‰ OPTIMAL! Maximum Utility!
๐Ÿ–ฑ๏ธ Drag to rotate โ€ข Scroll to zoom
Explanation

This 3D visualization extends the standard two-good utility maximization problem to three goods. The budget constraint is now a plane in three-dimensional space rather than a line, and the indifference curves become indifference surfaces. The consumer's problem is to find the point on the budget plane that lies on the highest possible indifference surface.

With Cobb-Douglas preferences U = Xฮฑ ยท Yฮฒ ยท Z(1-ฮฑ-ฮฒ), the optimal solution allocates income in proportion to the exponents: fraction ฮฑ to X, ฮฒ to Y, and (1-ฮฑ-ฮฒ) to Z. This elegant result generalizes directly from the two-good case. Rotate the 3D view to see how the indifference surface is tangent to the budget plane at the optimum.

๐ŸŽฏ Your Choices
Good X10
Good Y10
Good Z10
Budget Used$60 / $100
Your Score
Current Utility
0.0
Optimal: ??.?
Proximity to Optimal0%
Budget Constraint
Income (M)100
Price X (Pโ‚“)2
Price Y (Pแตง)2
Price Z (P_z)2
Pโ‚“ยทX + PแตงยทY + P_zยทZ โ‰ค M
Preferences (Cobb-Douglas)
ฮฑ (weight on X)0.33
ฮฒ (weight on Y)0.33
U = Xฮฑ ยท Yฮฒ ยท Z(1-ฮฑ-ฮฒ)
Budget Plane
Indifference Surface
Your Bundle
Optimal Bundle