Indifference theory can explain all rational choices and, Ask an Expert

Economics

Indifference theory can explain all rational choices and behavior.

Try the theoryout on this situation. Suppose the only consideration for couples to have a bby or not was money. If a baby costs $8,000 a year, the price of "All other goods" is $1, and the couple has an annual income of $40,000, how would I construct a budget line for having a family?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9390427

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