2. Why does local non-satiation of preferences imply that a consumer would always choose a bundle on the boundary of the Walrasian budget set? Explain.
2. Why does local non-satiation of preferences imply that a consumer would always choose a bundle on the boundary of the Walrasian budget set? Explain.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter2: Choice In A World Of Scarcity
Section: Chapter Questions
Problem 9RQ: Explain why individuals make Choices that are directly on the budget constraint, rather than inside...
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