=+h. Now consider the case of risk aversion. Pick a bundle C that lies off the 45-degree
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=+h. Now consider the case of risk aversion. Pick a bundle C that lies off the 45-degree line on the
“budget line” you have drawn in your graph. In light of your answer to (e), is the point D that lies at the intersection of your “budget line” with the 45-degree line more or less preferred?
What does this imply for the shape of the indifference curve that runs through C?
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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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