Author Question: If X and Y are perfect substitutes, which of the following assumptions about indifference curves is ... (Read 71 times)

PhilipSeeMore · **on:** Jul 1, 2018

If X and Y are perfect substitutes, which of the following assumptions about indifference curves is not satisfied?

A) Completeness
B) Transitivity
C) More is preferred to less
D) Diminishing MRS
E) none of the above (All of the above assumptions are satisfied.)

Question 2

The constant dollar price is:

A) the real price of a good.
B) the nominal price of a good adjusted for inflation.
C) the current dollar price adjusted for inflation.
D) all of the above
E) none of the above