InterviewSolution
Saved Bookmarks
InterviewSolution
| 1. |
If two goods were perfect substitutes of each other, it necessarily follows that |
|
Answer» An INDIFFERENCE curve relating the two goods will be linear If two goods were perfect substitutes of each other, it necessarily follows that an indifference curve relating the two goods will be linear. As PRICE rises for a fixed money INCOME, the consumer seeks the less expensive SUBSTITUTE at a LOWER indifference curve. |
|