Question
True or false: if you are presented with a single, upward-sloping indifference curve for various bundles ofand, you can say that one of the items
True or false: if you are presented with a single, upward-sloping indifference curve for various bundles ofand, you can say that one of the items is a good and the other is a bad, but you cannot say which is which.
True. No matter what the curvature of a single indifference curve, there is some combination of either ( = ; = )OR( = ; = ) which can account for it, depending on what we assume about marginal (dis)utility. In the convex curve depicted below, for example, it could be that ( = h ; =
h h ), or it could be the case that ( =
h ; = h h ).
I have failed to understand this, may you draw the diagram and explain how would I approach it, thanks !I have also struggled to understand is it the fact due to the curvature of the indifference curve? I failed to udnerstand why is the marginal utitility and disutility eat? pleas explain
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