(Answered) Suppose a utility function is of the general formu xy where

Economics

Suppose a utility function is of the general formU (x,y) where x and y are two goods consumed.

A) Consider an indifference curve for imperfect substitutes. Bundle "a" is on the relatively steep portion of the indifference curve while bundle "b" is on the relatively flat portion of the indifference curve. In terms of willingness to substitute between x and y, what is the difference between the two bundles?

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Business Economics, Economics

Category:- Business Economics
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