Sally Consumer's Indifference Curve Between Cigarettes and Hamburgers Is Upward

question 36

Essay

Sally Consumer's indifference curve between cigarettes and hamburgers is upward sloping. Based on this information, can we conclude that Sally views cigarettes as "bads" and hamburgers as "goods"? Explain.

---

Definitions:

Innocent Misrepresentation

A false statement made by someone who believes it to be true, which can lead to a contract being voided if it influenced the agreement.

Voidable

A term describing a contract that may be affirmed or rejected at the option of one of the parties.

Policy

The contract of insurance.

Life Insurance Policy

A contract between an insurer and a policyholder that pays a designated beneficiary a sum of money upon the death of the insured person.