Suppose an individual has an initial amount of two goods that provide him/her utility, and these initial amounts are given as x, y. graph these initial amounts on the individuals' indifference curve. if the person can trade y for x or x for y, what kind of trade would he or she voluntarily make? what kind would not be made? how do these trades relate to this person's marginal rate of commodity substitution at the point (x, y). suppose the person is relatively happy with the initial amounts in his possession, and will only consider trades that increase utility by at least amount k, how would you illustrate this on the indifference map? Copy and paste your question here...

Answer rating: 100% (QA)

a The initial b... View the full answer