Assuming that he is rational, I’s indifference curves cannot cross. [Hint: One of the key assumptions about preferences is that consumption bundles with more of both goods are preferred to those with less of both.]
1
Expert's answer
2014-10-21T12:37:45-0400
An indifference curve represents all points where different combinations of consumption yield the exact same level of utility (satisfaction). Different indifference curves are based on different levels of utility. A graph will show the equal levels of utility. A higher utility will simply mean an indifference curve that is farther away from the origin that a lower utility. It's simply a matter of what the graph is designed to show. Plus, consumer preferences are considered to be rational. if the utility of combination A is greater than the utility of combination B, and the utility of combination B is greater than the utility of combination C, then it follows that the utility of combination A is greater than the utility of combination C.
Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…
APPROVED BY CLIENTS
Finding a professional expert in "partial differential equations" in the advanced level is difficult.
You can find this expert in "Assignmentexpert.com" with confidence.
Exceptional experts! I appreciate your help. God bless you!
Comments
Leave a comment