Economists Sometimes Represent Two Goods as Having Right-Angled Indifference Curves

question 19

Multiple Choice

Economists sometimes represent two goods as having right-angled indifference curves (perfect complements) . In reality, this violates:

• A)the assumption of transitivity.
• B)the assumption of completeness.
• C)the law of diminishing returns.
• D)the "more is better" assumption.

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Definitions:

Horizontal Shift

A movement of a graph in the left or right direction along the horizontal axis.

Vertical Shift

A transformation that moves a graph up or down the y-axis, changing the equation's output but not its input.

Vertical Line Test

A method to determine if a graph represents a function by checking if any vertical line intersects the graph at more than one point.

Function

In mathematics, a relation between sets that associates every element of a first set to exactly one element of the second set.