Y6

Course: Microeconomics - Consumer Theory

Answer following statements: 1. Comment if according to consumer theory it is true that there is only one optimal basket of goods to be chosen by consumer. 2. Comment on what happens to consumer theory if assumption of non-saturation is violated. Please graph 3. Comment on whether it is true or false that indifference curves are concave with respect to infinity. Please graph

4. Comment on whether it is true that, at optimal point of utility maximization, objective valuation of good X in terms of good Y, determined by prices, equals subjective valuation of good X in terms of good Y determined by marginal utility.