Question: Consumer Behavior - End of Chapter Problem For Maahir, shampoo ( S ) and conditioner ( C ) are perfect complements. He uses 1 pump
Consumer Behavior End of Chapter Problem
For Maahir, shampoo S and conditioner C are perfect complements. He uses pump of shampoo and pump of conditioner every time he washes his hair.
a What do Maahir's indifference curves for shampoo
and conditioner look like?
They are typical indifference curves that are convex
to the origin.
They are Lshaped.
They are concave to the origin.
They are linear.
b Assume that shampoo costs $ per pump and conditioner costs $ per pump. Assuming Maahir's budget for shampoo and conditioner is $ use the space below to write an equation for his budget constraint. In your equation, use for shampoo and for conditioner. You must use capital letters for and within the budget constraint; otherwise, your answer will be marked as incorrect.
:
$
c Given the information from parts a and b what is Maahir's optimal bundle of shampoo and conditioner?
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