In a budget line/indifference curve figure, how do you identify the best affordable combination of any two goods?
What will be an ideal response?
Any combination of goods along the budget line is affordable. The best of these combinations is on the highest indifference curve. This best combination is where the indifference curve is tangent to the budget line, so this combination is the best affordable combination.
Economics
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The price of one good changes and Sue is now at a point on her indifference curve where the marginal rate of substitution exceeds the relative price. Sue will now choose to buy ________ of the good that is measured on the ________
A) more; x-axis B) more; y-axis C) the same quantity; x-axis D) less; x-axis
Economics
In some markets, ________ act to adjust the price to bring the market into equilibrium
A) bulls B) regulators C) market makers D) web sites
Economics