Explore BrainMass

Explore BrainMass

    Budget Constraint, Substitutes, Complements,Indifference Map

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    For each case below:
    1) State if the goods in the bundles are "perfect substitutes," "perfect complements," or "imperfect substitutes" and 2) Draw 3 curves that could represent an indifference map for a consumer.

    (A) The bundles includes left shoes and right shoes

    (B) The bundles includes 8 ounce frozen orange juice and 12 ounce frozen orange juice

    (C) The bundles includes rice and potatoes

    © BrainMass Inc. brainmass.com December 15, 2020, 9:29 pm ad1c9bdddf

    Solution Preview

    (A) The bundles includes left shoes and right shoes

    These are perfect complements because a person wears the left shoe with the right shoe. When we draw indifference curves the elbows of the curves are collinear.

    (B) The bundles includes ...

    Solution Summary

    The answer to this problem explains the Budget Constraint. The references related to the answer are also included.