This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose that Dell computers and Gateway computers are very close substitutes. Then the indifference ... (Read 112 times)

future617RT

  • Hero Member
  • *****
  • Posts: 543
on: Jun 29, 2018
Suppose that Dell computers and Gateway computers are very close substitutes. Then the indifference curves between Dell computers and Gateway computers are almost straight lines. Is this analysis correct or incorrect? Explain.
 
  What will be an ideal response?

Question 2

If a good is scarce, does that imply that there is a shortage of it?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kbennett34

  • Sr. Member
  • ****
  • Posts: 333
Reply #1 on: Jun 29, 2018
Answer to Question 1

The analysis is correct. When two goods are perfect substitutes, their indifference curves are straight lines. A Dell computer and a Gateway computer are very close substitutes, so their indifference curves are close to straight lines.

Answer to Question 2

No. If a good is scarce, that means that it is limited in supply. All resources in the economy arescarce.


future617RT

  • Member
  • Posts: 543
Reply 2 on: Jun 29, 2018
Gracias!

Jsherida

  • Member
  • Posts: 314
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Jane Goodall pioneered the modern approach to studying primates in the wild, involving close-up obse Jane Goodall pioneered the modern approach to studying primates in the wild, involving close-up obse
For kinship analyses buccal swabs from close family are taken for comparison. For kinship analyses buccal swabs from close family are taken for comparison.
Close-up of Pluto Close-up of Pluto
To cleanse an open wound, begin close to the wound and work outward in full or half circles. To cleanse an open wound, begin close to the wound and work outward in full or half circles.
Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ... Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...
Video: Fermentation pathways

For a complete list of videos, visit our video library