A Question per day - Day 3

1. Explain the relationship between the goods described below in terms of what their indifference curve probably looks like.

a. Consumer A gets 10 units of utility (utils) out of buying 2 units of good X and 2 units of good Y, but receives no additional utility when buying additional units of only good X.

b. Consumer B gets 20 utils out of buying 0 units of good W and 4 units of good Z. For every additional unit of W purchased, consumer B's utility will remain at 20 utils if 2 less units of Z are purchased each time.

2. Suppose we have two goods, A and B, where more is better is true for good A, but not good B. What does the indifference curve generally look like in this case?