i wanna need to know answers of these questions..pls help me.. i have to do it till morning.... ******************************* a) Orange juice and apple juice are known to be perfect substitutes. Draw the appropriate priceconsumption (for a variable price of orange juice) and income-consumption curves( by graph) b) Left shoes and right shoes are perfect complements. Draw the appropriate price-consumption and income- consumption curves (by graph) **********************************
the demand and supply for orange/apple juice will be inversely proportional.. for right sneak/left the d&s will be directly proportional. think of it that way.
Look it up in a book (or online). After all that is why you're going to school right (to learn this stuff)?
Orange juice and apple juice are known to be perfect substitutes. Draw the appropriate price-consumption (for a variable price of orange juice) and income-consumption curves. We know that the indifference curves for perfect substitutes will be straight lines. In this case, the consumer will always purchase the cheaper of the two goods. If the price of orange juice is less than that of apple juice, the consumer will purchase only orange juice and the price consumption curve will be on the "orange juice axis" of the graph. If apple juice is cheaper, the consumer will purchase only apple juice and the price consumption curve will be on the "apple juice axis." If the two goods have the same price, the consumer will be indifferent between the two; the price consumption curve will coincide with the indifference curve. ********************************** Left shoes and right shoes are perfect complements. Draw the appropriate price-consumption and income-consumption curves. For goods that are perfect complements, such as right shoes and left shoes, we know that the indifference curves are L-shaped. The point of utility maximization occurs when the budget constraints, L1 and L2 touch the kink of U1 and U2.