Question
Which of the following is correct? a.Hank must consumeexactly4ouncesofsteakper1potato. That means, steak and potato are perfect substitutes. b.Hanklikessteakandpotatoesandpreferstohaveagoodbalanceofboth,buthewon'tturndownalargehelpingofeitherofthem. That means, steak and potato couldn't reflect
Which of the following is correct?
a.Hankmustconsumeexactly4ouncesofsteakper1potato. That means, steak and potato are perfect substitutes.
b.Hanklikessteakandpotatoesandpreferstohaveagoodbalanceofboth,buthewon'tturndownalargehelpingofeitherofthem. That means, steak and potato couldn't reflect Cobb-Douglas preference.
c.Hankisalwayshappytotrade2ouncesofsteakforanextrapotato.That means, the indifference curve for steak and potato is of"L" shape.
d.Hankdoesnotlikepotatoesatall;thefewerthebetterforhim. But he does like steak. That means, potato is a bad for him.
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Economics
Authors: Roger A. Arnold
12th edition
978-1305758674, 1305758676, 978-1285738321
