A consumer buys only two goods, 𝑋 and 𝑌, with prices of 𝑝𝑋and 𝑝𝑌 and has
Posted: Thu May 19, 2022 7:27 am
A consumer buys only two goods, π and π, with prices of ππand ππ
and has an income of π. Use diagrams to indicate consumer
preferences, including details of the marginal rate of
substitution, in the cases where:
(a) π is a Sierra Blue iPhone 13 Pro and π is a Graphite iPhone
13 Pro. Assume that the consumer is indifferent between the two
colours.
(b) π is a right foot Nike Air Max Vapormax trainer and π is a
left foot Nike Air Max Vapormax trainer.
(c) π is an iPad Pro and π is a Balenciaga jacket.
(d) Suppose that the consumer wins a substantial sum of money in
the UKβs National Lottery, how will this affect her consumption
choices in each of the cases above? Illustrate the effects on your
diagrams.
e) Suppose that due to supply change shortages, the price of π
increases, how will this affect the consumerβs choices in each of
the cases above? Illustrate the effects on your diagrams.
and has an income of π. Use diagrams to indicate consumer
preferences, including details of the marginal rate of
substitution, in the cases where:
(a) π is a Sierra Blue iPhone 13 Pro and π is a Graphite iPhone
13 Pro. Assume that the consumer is indifferent between the two
colours.
(b) π is a right foot Nike Air Max Vapormax trainer and π is a
left foot Nike Air Max Vapormax trainer.
(c) π is an iPad Pro and π is a Balenciaga jacket.
(d) Suppose that the consumer wins a substantial sum of money in
the UKβs National Lottery, how will this affect her consumption
choices in each of the cases above? Illustrate the effects on your
diagrams.
e) Suppose that due to supply change shortages, the price of π
increases, how will this affect the consumerβs choices in each of
the cases above? Illustrate the effects on your diagrams.