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(Please Read all) (1) With aid the aid of appropriate diagrams, explain why indifference curves are traditionally convex to the origin? I have already written

(Please Read all)

(1) With aid the aid of appropriate diagrams, explain why indifference curves are traditionally convex to the origin?

I have already written some notes why IC are traditionally convex but I cannot showcase this issue with a diagram properly that's transferable into the second question Which asks:

(2) Given the indifference curve for two goods is convex, derive a price inelastic demand curve for good X.

image text in transcribed
Budget offyo per ween E 1. 20 40 4-13) (1-2) Slope = = 14 = 14 O + 4 - As = 1 -3.5) = MRO + Mullac (3 - 4) Slope = = 47 MAY ( the roble of willingness to sub I for down /a (@ ) Apples =[-03) (- 3 ) anothery price () slope is going down as use purchase more Bananas |because of the drility 10 85 50 5 40 (PC) ( 4) Bananas thedry. (+10 ) (@) Banginas (2) As we get more of a good or consum the less willing , use are to five |another good ! ! (4) If it isn't / convex to the pigin it wouldn't follow our diminishing marginal utility. ) As Shown in the graph, we trade- off firstly 14 Apples to As Q1 - MM ) to we are sacrificing less 4 bananas. As we had a lot Apples to bananas. But now to slope is reducing + Explains why are Id use have more bananas is / convex and not linear or condave. only willing! to backify for every 3:3 bandnab

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