Question
In consumer's utility maximization problem given the budget constraint, 'tangency rule' between indiffierence curve and budget constraint is both necessary and sufficient condition. 1) Do
"In consumer's utility maximization problem given the budget constraint, 'tangency rule' between indiffierence curve and budget constraint is both necessary and sufficient condition."
1) Do you agree, disagree or are you uncertain with the above statement? Briefly explain.
2) Can you imagine when an indifference curve is not globally (i.e, constantly) convex or concave?
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Basic Economics
Authors: Frank V. Mastrianna
16th edition
1111826641, 978-0357706664, 978-1111826642
