Draw a budget line and indicate the consumers choice


Problem: Draw an indifference curve (If) in a (x,y)-space for the following cases:

(a) The IC is convex to the origin.

(b) The IC is concave to the origin.

(c) Goods x and y are perfect complements.

Furthermore, draw a budget line and indicate the consumer's choice as point E in each of these diagrams. E must be a point on the IC.

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Econometrics: Draw a budget line and indicate the consumers choice
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