00:01
So i actually can't see the figure that's being referenced here, but i can generate a figure, right? the key here is this idea of perfect compliments, right? these two goods are only consumed with each other.
00:16
And so if you give maureen, say, extra coffee, she doesn't want the extra coffee because she only wants one coffee with one sugar.
00:26
So if you sort of plot her indifference curves, right, between coffee and sugar, there's this ratio, right? there's going to be this one -to -one line that is what she desires, right? she wants one coffee, one sugar, two coffee, two sugar, three coffee, three sugar, right? these things are peered together for her, and that peering seems to be very fixed.
00:50
So her indifference curves here would be something like this, right? this would be utility equals one at a point of one and one something like this utility would be right at two and two her indifference curves have this right angle quality to them and so that's the classic story because if you give her for example more coffee moving horizontally along one of these indifference curves she doesn't actually want the new coffee right the coffee until you give her sugar...