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Economics Homework 4 - Model (view source)
Revision as of 15:29, March 28, 2013
, 15:29, March 28, 2013But if the quantity of both goods increase along the dotted line, then utility does increase.
[[File:IndifferenceCurve2.gif|550px]]
[[File:IndifferenceCurve2.gif|550px]]
:They are perfect complements. The curves show that "extra" of one good is useless (adds no utility) without "extra" of the other good to go along with it. Extra ketchup provides no added utility without an extra hamburger to go along with it, for example.
:They are perfect complements. The curves show that "extra" of one good is useless (adds no utility) without "extra" of the other good to go along with it. Extra ketchup provides no added utility without an extra hamburger to go along with it, for example. But if the quantity of both goods increase along the dotted line, then utility does increase.
[[Category:Economics lectures]]
[[Category:Economics lectures]]