Suppose that consumption when it's sunny and consumption when there's a hurricane are perfect complements. The investor's

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Suppose that consumption when it's sunny and consumption when there's a hurricane are perfect complements. The investor's indifference curves are L-shaped and the corner of each L lies on the 45-degree line. Using graphs, explain why these assumptions imply an unwillingness to take any risks.
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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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