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Explain and sketch a person's indifference map for two goods X and Y. Mark the optimum consumption point. Now illustrate and explain the following A)
Explain and sketch a person's indifference map for two goods X and Y. Mark the optimum consumption point. Now illustrate and explain the following
A) a rise in the price of good X, but no change in the price of good Y
B) a shift in the person's tastes from good Y to good X
C) a fall in the person's income and a fall in the price of good Y, with the result that the consumption of Y remains constant but that of X falls
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