Use an indifference curve diagram (gift goods on one axis and all other goods on the other)
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Use an indifference curve diagram (gift goods on one axis and all other goods on the other) to illustrate that one is better off receiving cash than a gift. (See the discussion of gifts in this chapter and the discussion of food stamps in Chapter 5.) Relate your analysis to the Application "Deadweight Loss of Christmas Presents."
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Microeconomics Theory and Applications with Calculus
ISBN: 978-0133019933
3rd edition
Authors: Jeffrey M. Perloff
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