Question 1 (1) (ii) Draw a diagram showing a bliss point and some indifference curves. Which...
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Question 1 (1) (ii) Draw a diagram showing a bliss point and some indifference curves. Which of the assumptions that we make about preferences does this violate? (10 marks) Use the bliss point to split the diagram into 4 quadrants. For each quadrant identify the direction in which utility is increasing and fully explain this. (30 marks) Question 1 (1) (ii) Draw a diagram showing a bliss point and some indifference curves. Which of the assumptions that we make about preferences does this violate? (10 marks) Use the bliss point to split the diagram into 4 quadrants. For each quadrant identify the direction in which utility is increasing and fully explain this. (30 marks)
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Answer rating: 100% (QA)
Answer Q1 Part1 1Satiation point S is also called the point of bliss Now consider point R on indifference curve IC1 in zone 3 in which indifference curves have also negative slope As the consumer move... View the full answer
Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
Posted Date:
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