i. It is known that the indifference curve is convex. What does this tell you about the relationship between the goods? ii. Assuming that seafood is your favorite food. Would the law of diminishing marginal utility apply to your consumption of seafood? iii. Using examples, does an increase in income affect a consumer’s budget line? Does it impact their total utility.
i. It is known that the indifference curve is convex. What does this tell you about the relationship between the goods? ii. Assuming that seafood is your favorite food. Would the law of diminishing marginal utility apply to your consumption of seafood? iii. Using examples, does an increase in income affect a consumer’s budget line? Does it impact their total utility.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 7SQ
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i. It is known that the indifference curve is convex. What does this tell you about the relationship between the goods?
ii. Assuming that seafood is your favorite food. Would the law of diminishing
iii. Using examples, does an increase in income affect a consumer’s budget line? Does it impact their total utility.
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