Most of the indifference curves we have interacted with were…
Most of the indifference curves we have interacted with were convex (bowed in towards the origin). In this question, consider a case of indifference curves that are vertical. What economic good might best be characterized by these strange preferences.
Read DetailsSuppose there are two goods in the world: Dollars spent at d…
Suppose there are two goods in the world: Dollars spent at dine-in only restaurants (on horizontal axis) and Dollars spent elsewhere (on vertical axis). Pick a bundle in this space. Label it “A”. Draw an indifference curve through that bundle. This represents the preferences of an average person in their 60s pre-COVID. If we were to draw a Post-COVID indifference curve for that same average person, the MRS through that bundle “A” has (in absolute value):
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