Suppose consumer are always ready to trade k units of good X for w Then, I poo8 10 X and Y are goods and indifference curve is bowed inward towards origin X and Y are goods and indifference curves are lines since marginal rate of substitution is constant
Suppose consumer are always ready to trade k units of good X for w Then, I poo8 10 X and Y are goods and indifference curve is bowed inward towards origin X and Y are goods and indifference curves are lines since marginal rate of substitution is constant
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.7P
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Question
![Suppose consumer are always ready to trade k units of good X for w units of good Y.
Then,
X and Y are goods and indifference curve is bowed inward towards origin
X and Y are goods and indifference curves are lines since marginal rate of
substitution is constant
X and Y are perfect complements and indifference curves are L shaped
X and Y are perfect substitutes and indifference curve is bowed inward towards
origin](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F676abea2-f033-430f-80eb-490b7262bcc0%2F5736081e-8c2c-4b82-ae31-90e4e39712c1%2Fwjmnl0c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose consumer are always ready to trade k units of good X for w units of good Y.
Then,
X and Y are goods and indifference curve is bowed inward towards origin
X and Y are goods and indifference curves are lines since marginal rate of
substitution is constant
X and Y are perfect complements and indifference curves are L shaped
X and Y are perfect substitutes and indifference curve is bowed inward towards
origin
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