=+d. If consumer 1 was indifferent between buying and not buying the superstore membership, can you tell
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=+d. If consumer 1 was indifferent between buying and not buying the superstore membership, can you tell whether consumer 2 [from part (b)] is also indifferent? (Hint: Given that tastes are homothetic and identical across consumers, what would have to be true about the intersection of the two budgets for the higher income consumer in order for the consumer also to be indifferent between them?)
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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