Price Consumption Curves Flashcards
Terms : Hide Images [1]
| 8313780473 | Price Consumption Curve Definition | Traces utility-maximizing combinations of two goods (x1 and x2 ) for every possible price of the first good (x1 ) | 0 | |
| 8313797242 | Decreases | As the price of x1 __________, pivot budget constraint ________ along X-axis | 1 | |
| 8313809810 | (high, low) or (low, high) | When price of x1 is __________, consume _________ amount of x1 | 2 | |
| 8313826778 | Complements | Upward-sloping price consumption curve. As price of x 1 decreases, buy more of both x 1 and x 2. | 3 | |
| 8313829288 | Substitutes | Downward-sloping price consumption curve. As price of x 1 decreases, buy more of x 1 and less of x 2 | 4 |