Question: A consumer views two goods as perfect substitutes one for one (i.e. the consumer considers each unit of good 1 to be worth 1 unit
A consumer views two goods as perfect substitutes one for one (i.e. the consumer considers each unit of good 1 to be worth 1 unit of good 2). (a) Sketch the indifference curves of the consumer. (b) If an economy is composed of two consumers with these preferences, demonstrate that any allocation is Pareto efficient. (c) If an economy has one consumer who views its two goods as perfect substitutes one for one and a second that considers each u
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