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The prices of good 1 and good 2 are each $1. Larry has $200 to spend and is considering choosing 100 units of good 1
The prices of good 1 and good 2 are each $1. Larry has $200 to spend and is considering choosing 100 units of good 1 and 100 units of good 2. Michael has a preference with bowed-in (convex) downward sloping indifference curves and more of each good is better for him. Where good 1 is drawn on horizontal axis and good 2 is drawn on the vertical axis, the slope of his indifference curve at the bundle (100,100) is -3/2. Which of the following willfor surebe correct?
- A.Bundle (150, 50) will be on a higher indifference curve than (100, 100)
- B.Bundle (50, 150) will be on a lower indifference curve than (100, 100)
- C.Bundle (150, 50) will be on a lower indifference curve than (100, 100)
- D.Bundle (50, 150) will be on a higher indifference curve than (100, 100)
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