The figure below show the initial optimal point of a family who has to decide how much kids (K) to have in 5 years and at the same time how much of all other goods to consumer (measured as composite good in dollars). Now assuming that kids are inferior goods/services, show the new optimal point as e2 if the income of the family increases IC₁ K

The figure below show the initial optimal point of a family who has to decide how much kids (K) to have in 5 years and at the same time how much of all other goods to consumer (measured as composite good in dollars). Now assuming that kids are inferior goods/services, show the new optimal point as e2 if the income of the family increases IC₁ K

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 2SQP

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