Suppose consumers use k units of good X and w units of good Y in fixed proportion. Then, X and Y are goods and indifference curve is bowed inward towards origin X and Y are perfect substitutes and indifference curve is bowed inward towards origin. OX and Y are goods and indifference curves are lines since marginal rate of substitution is constant. X and are perfect complements and indifference curves are L shaped

Suppose consumers use k units of good X and w units of good Y in fixed proportion. Then, X and Y are goods and indifference curve is bowed inward towards origin X and Y are perfect substitutes and indifference curve is bowed inward towards origin. OX and Y are goods and indifference curves are lines since marginal rate of substitution is constant. X and are perfect complements and indifference curves are L shaped

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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