If consumption preference is concave (such as Narcotics drugs), this violates the assumption of consumer preference (assumed to be convex) ,how business policy (eg choosing prices, promotions/sales) or government policy (eg taxes) might be affected
If consumption preference is concave (such as Narcotics drugs), this violates the assumption of consumer preference (assumed to be convex) ,how business policy (eg choosing prices, promotions/sales) or government policy (eg taxes) might be affected
Chapter5: Income And Substitution Effects
Section: Chapter Questions
Problem 5.6P
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If consumption preference is concave (such as Narcotics drugs), this violates the assumption of consumer preference (assumed to be convex) ,how business policy (eg choosing prices, promotions/sales) or government policy (eg taxes) might be affected.
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