a) What is the MRS of a well behaved indifference curve? b) If price 2 is increasing but less than price 1, what will happen to the slope of budget line? c) What are the preference relations of these group of people X, Y, Z, and the relation "at least as tall as" as in "X is at least as tall as Y".

a) What is the MRS of a well behaved indifference curve? b) If price 2 is increasing but less than price 1, what will happen to the slope of budget line? c) What are the preference relations of these group of people X, Y, Z, and the relation "at least as tall as" as in "X is at least as tall as Y".

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 2SQ

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Question

Answer these short questions : a) What is the MRS of a well behaved indifference curve? b) If price 2 is increasing but less than price 1, what will happen to the slope of budget line? c) What are the preference relations of these group of people X, Y, Z, and the relation "at least as tall as" as in "X is at least as tall as Y".

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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