Question
A consumer's preferences over consumption bundles (x1,x2) are strictly monotonic.The consumer is indifferent between the bundles (4,6) and (5,4).Her marginal rates of substitution of good
A consumer's preferences over consumption bundles (x1,x2) are strictly monotonic.The consumer is indifferent between the bundles (4,6) and (5,4).Her marginal rates of substitution of good 2 to good 1 (that is, x2/x1) at (4,6) and (5,4) are: MRS(4,6)=-2, MRS(5,4)=-3.Can the consumer's preferences be strictly convex?
a.
Yes
b.
No
c.
Not enough information to answer question.
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The Americans An Economic Record An Economic Record
Authors: Stanley Lebergott
1st Edition
0393953114, 9780393953114
