Consider a person whose tastes and preferences are represented by IC . Something changes his tastes and preferences and his indifference curve shifts to IC2. Good X 10 IC, 8 IC, 12 Good Y 10 IC1 is steeper than IC2. If the person starts at A and moves to B, they are giving up 2 units of X to get 2 units of Y. If the person starts at A and moves to F, they are giving up 2 units of X to get 1 unit of Y.

Consider a person whose tastes and preferences are represented by IC . Something changes his tastes and preferences and his indifference curve shifts to IC2. Good X 10 IC, 8 IC, 12 Good Y 10 IC1 is steeper than IC2. If the person starts at A and moves to B, they are giving up 2 units of X to get 2 units of Y. If the person starts at A and moves to F, they are giving up 2 units of X to get 1 unit of Y.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 9P

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