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Author Question: Suppose that Dell computers and Gateway computers are very close substitutes. Then the indifference ... (Read 199 times)

future617RT

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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?


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kbennett34

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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

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

bdobbins

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Reply 3 on: Yesterday
Excellent

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