Question

If the indifference curves of Mary are hyperbolic, asymptoting to, but never touching any of the axis, then Mary has Cobb Douglas preferences. considers the two goods perfect substitutes. considers the two goods perfect complements. is neutral regarding the good represented in the x-axis.

          If the indifference curves of Mary are hyperbolic, asymptoting to, but never touching any of
the axis, then Mary
has Cobb Douglas preferences.
considers the two goods perfect substitutes.
considers the two goods perfect complements.
is neutral regarding the good represented in the x-axis.

If the indifference curves of Mary are hyperbolic, asymptoting to, but never touching any of
the axis, then Mary
has Cobb Douglas preferences.
considers the two goods perfect substitutes.
considers the two goods perfect complements.
is neutral regarding the good represented in the x-axis.

Added by Jonathan S.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Rabia Sarwar

Step 1

These curves are asymptotic to the axes, meaning they approach but never touch the axes. This indicates that the consumer derives utility from both goods and does not consider one good as a perfect substitute or complement for the other. Show more…

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If the indifference curves of Mary are hyperbolic, asymptoting to, but never touching any of the axis, then Mary has Cobb Douglas preferences. considers the two goods perfect substitutes. considers the two goods perfect complements. is neutral regarding the good represented in the x-axis.