Asked by
kalai agnes
on Oct 14, 2024Verified
As you may know, Mungoites each have two left feet and one right foot.Their preferences for left and right shoes display perfect complementarity.Mungoites find shoes useful only in trios of two lefts and a right.The price of each type of shoe is $10 a shoe, and Mungoites consume nothing other than shoes.A Mungoite's Engel curve for right shoes has the equation
A) R m/30.
B) R m 10.
C) R 2m.
D) R 10m.
E) R m/10.
Perfect Complementarity
Refers to a situation in consumer choice theory where two goods are always consumed together in fixed proportions because one is perfectly complementary to the other.
Engel Curve
A graph showing the relationship between the income of a consumer and the amount of a good that the consumer buys, illustrating how spending on a good varies with income.
Left and Right Shoes
Items that are perfect complements in consumption, where the use of one without the other is generally considered incomplete or unsatisfactory.
- Utilize the notion of perfect substitutes and complements within the theory of consumer choice.
Verified Answer
RC
Learning Objectives
- Utilize the notion of perfect substitutes and complements within the theory of consumer choice.