Possible map of price-indifference curves


Question:

In the two good case, the level sets of the indirect utility fuction in the price space are sets of the form

{(p1,p2) 'vertical line' v(p1,p2,y) = v0} for when v0 is an element in the set of real numbers

These are sometimes called price-indifference curves. Sketch a possible map of price-indifference curves. Give separate arguments to support your claims as to their slope, curvature, and the direction of increasing utility

Solution Preview :

Prepared by a verified Expert
Microeconomics: Possible map of price-indifference curves
Reference No:- TGS02093752

Now Priced at $20 (50% Discount)

Recommended (90%)

Rated (4.3/5)