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8 Cards in this Set
- Front
- Back
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indifference curves for economic bad |
- they are positively sloped - to compensate for the bad, you need to add a good |
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indifference curves that are vertical |
they are neutral, so the quantity doesn't matter |
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utility function for perfect substitutes |
U = U(x,y) = ax + by |
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utility function for perfect complements |
U = min(ax,by) |
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cobbs-douglas utility curve |
U = x^ay^b |
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income consumption curve |
- shows how the bundle of goods varies with income levels - found by joining optimum points with each successive increase in income |
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engel curve |
- shows how much of a particular good people will demand at different levels of income - |
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price-consumption curve |
- shows how consumption is affected by a change in the price of goods |
