Re: DSE 2009

Posted by ritu on Feb 23, 2012; 9:11am
URL: http://discussion-forum.276.s1.nabble.com/DSE-2009-tp7296495p7311261.html

a utility maximizing consumer with a given money income consumes two commodities X & Y.he is a price taker in the market for X.for Y there are two alternatives ...
a.he purchases  Y from the market being a price taker or
b.the govt supplies a fixed quantity of it through ration shops free of cost.is the consumer necessarily better off in case b???explain with respect to following cases:
1.indiff curves are strictly convex to origin
2.X & Y are perfect substitutes
3.X & Y are perfect complements