This topic contains a solution. Click here to go to the answer

Author Question: How can a consumer's demand for a good be derived using indifference curve analysis? What will be ... (Read 121 times)

imowrer

  • Hero Member
  • *****
  • Posts: 514
How can a consumer's demand for a good be derived using indifference curve analysis?
 
  What will be an ideal response?

Question 2

If a consumer has a choice between only two goods and both of them are perfect complements what would the indifference curve look like and why?
 
  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

dominiqueenicolee

  • Sr. Member
  • ****
  • Posts: 314
Answer to Question 1

As the price of a good changes the consumer's budget constraint changes. Thus, it is possible to see how the consumer changes his utility-maximizing choice. This will give us his new quantity demanded at each price.

Answer to Question 2

The indifference curves would be L-shaped. The reasoning is that one good must be accompanied by the other good in order to give the first any utility. Having more of the second good however, doesn't make the person any better off.





 

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

For a complete list of videos, visit our video library