Asked by Mikel
Most of the preferences we use in class exhibit convexity.
What does it imply about the shape of indifference curves? Explain, in
words, what this implies about consumer preferences, think of an example
where this might be a bad assumption and try to come up with a utility
function that captures your idea in the example.
What does it imply about the shape of indifference curves? Explain, in
words, what this implies about consumer preferences, think of an example
where this might be a bad assumption and try to come up with a utility
function that captures your idea in the example.