Bill katz prefers less of good 1 to more and he prefers


Bill Katz prefers less of good 1 to more and he prefers more of good 2 to less. Bill has strictly convex preferences (i.e. mixtures of bundles are preferred to the bundles themselves). With commodity 1 on the horizontal axis and commodity 2 on the vertical axis answer the following questions: A) Would his indifference curve be positively or negatively slopped? Explain. B) Would the slope of the indifference curve be increasing (convex) or decreasing (concave)? C) Draw his indifference curve in a way that is consistent with your answers in parts (A) and (B) and show with an arrow in which direction the utility increases.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Bill katz prefers less of good 1 to more and he prefers
Reference No:- TGS01351662

Expected delivery within 24 Hours