If a consumer has a choice between only two goods and both of them are perfect substitutes what would the indifference curve look like and why?
What will be an ideal response?
The indifference curves would be downward-sloping and linear since the consumer would be willing to trade them at a fixed ratio.
Economics
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Under a relative concept of poverty, poverty
a. doesn't really exist. b. is higher in rich countries than in poor countries. c. can never be wholly eliminated by public policy. d. declines as technology advances.
Economics
Suppose that a firm is currently producing 500 units of output. At this level of output, AVC is $1 per unit, and TFC is $500. What is the firm's TC?
A) $1,500 B) $1,000 C) $500 D) $501
Economics