Edaarin
11-14-2003, 01:06 AM
Okay, having some problems with a problem set. If anyone out there has taken Intermediate Microeconomics, I'd appreciate some help (might be a long shot, but I've been stuck on this problem for literally 2 hours).
If you have two consumers with identical preferences, will their contract curve be a straight line? List a counterexample if not.
I know that it won't necessarily be a straight line. And our professor told us one counter example (if they have identical preferences but different incomes, and one of the goods is an inferior good then it won't be a straight line), but we can't use that one. That's the only one I can think of, and frankly my mind's at the point where it's just jacking off right now. And I have an accounting midterm I still need to review for tomorrow.
Someone for the love of god help me.
If you have two consumers with identical preferences, will their contract curve be a straight line? List a counterexample if not.
I know that it won't necessarily be a straight line. And our professor told us one counter example (if they have identical preferences but different incomes, and one of the goods is an inferior good then it won't be a straight line), but we can't use that one. That's the only one I can think of, and frankly my mind's at the point where it's just jacking off right now. And I have an accounting midterm I still need to review for tomorrow.
Someone for the love of god help me.