Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Goods are perfect complements for the consumer if he or she always wants to consume these goods in fixed proportions, for example - right shoes

Goods are perfect complements for the consumer if he or she always wants to consume these goods in fixed proportions, for example

- right shoes are always consumed one-to-one with left shoes.

- cars and tires are consumed in fixed proportions of one to four

- If consumption and leisure are perfect complements => the consumer always wants to have C/l = constant => C = al where a >0 - The indifference curves of the consumer are L-shaped, with the right angles of the indifference curves falling along the line C = al

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Business

Authors: Alan M. Rugman, Simon Collinson

6th edition

273760971, 978-0273760979

More Books

Students also viewed these Economics questions

Question

3. It is the commitment you show that is the deciding factor.

Answered: 1 week ago