Re: DSE 2009

Posted by anon_econ on Feb 23, 2012; 2:08pm
URL: http://discussion-forum.276.s1.nabble.com/DSE-2009-tp7296495p7311921.html

Yeah he would be better off in the case of convex preferences as well as perfect substitutes..i had said that he could be worse off only in the case of perfect complements. in case of PS he would either be consuming at the x-intercept or at the y-intercept or he would be indifferent b/w all points on his budget constraint. In any case he would be better off. u can see it diagrammatically.