What do indifference curves look like if the two goods a consumer is consuming a
ID: 1152002 • Letter: W
Question
What do indifference curves look like if the two goods a consumer is consuming are perfect substitutes?
What do indifference curves look like if the two goods a consumer is consuming are perfect complements?
What is a bad in economics?
What’s the mathematical formula for a budget constraint with two goods, X and Y?
What do indifference curves look like if the two goods a consumer is consuming are perfect substitutes?
What do indifference curves look like if the two goods a consumer is consuming are perfect complements?
What is a bad in economics?
What’s the mathematical formula for a budget constraint with two goods, X and Y?
Explanation / Answer
Ans) the indifference curves of perfect substitutes are downward sloping straightine with negative slope and marginal rate of substitution is constant.
Ans) the indifference curves of perfect complements are 'L' shaped. The slope of perfect complements is zero.
Ans) a bad is anything which has a negative value. When the product ia consumed and gives negative utility then that product is considered to be bad.
Ans) budget constraint ; price of X * quantity of X + price of Y * quantity of Y = income
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.