# Ch.4 HW - Anthony Marsala Professor Woodbury EC251H Sec 2...

This preview shows pages 1–2. Sign up to view the full content.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Anthony Marsala Professor Woodbury EC251H Sec. 2 Ch.4 Homework Pg. 107 #1, 4, 6, 7, 9, 11, 30, 36 1. We believe indifference curves to be convex because most consumers are only willing to give up a good if they can get significantly more of another by the principle of “more is better.” This is true on a convex curve because for each unit you give up of one good, you receive more and more of another. However, on a concave curve, there are possible combinations where you are giving up one unit of a good but not receiving additional units of the second good. For example consider a concave curve with points a, b, and c. Moving from bundle c to b requires giving up 1 pizza for 3 burritos while moving from b to a requires giving up 1 pizza for only 2 burritos because as you move up the curve the MRS decreases. 4....
View Full Document

{[ snackBarMessage ]}

### Page1 / 3

Ch.4 HW - Anthony Marsala Professor Woodbury EC251H Sec 2...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online