the other commodity generates less utility per dollar spent on the good.
the two commodities must be perfect substitutes.
Monica consumes only goods A and B. Suppose that her marginal utility from consuming good A is equal to 1/Qa, and her marginal utility from consuming good B is 1/Qb. If the price of A is $0.50, the price of B is $4.00, and the Monica’s income is $120.00, how much of good A will she purchase?
0
12
24
48
120
An individual demand curve can be derived from the curve.
price-consumption
price-income
income-substitution
income-consumption
Engel curve
When the income-consumption curve has a positive slope throughout its entire length, we can conclude that
both goods are inferior.
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