Re: Demand function

Posted by Asd1995 on Jun 14, 2017; 8:54am
URL: http://discussion-forum.276.s1.nabble.com/Demand-function-tp7605535p7605575.html

If U= (x+y) + (z+w), we can say since both terms in parenthesis are perfect subsitutes, consumer will consume either only x,y or only z,w.

However U= (x+z) + (y+w) we can say again both are perfect substitutes, consumer will consume only x,z or y,w.

I hope someone can see my argument now.