Question

Question 2 [20 marks]

(a) Explain what is meant by inter-temporal choice. (5)

(b) Draw and explain an inter-temporal budget constraint. (5)

(c) Use the indifference curve approach to derive the Marshallian demand curve (10)

Please Please Please answer C

this is the 4 time am posting this question but am only receiving answers for A& B . NB!!!!! Please answer C

Answer 1

Marshallian demand curves are derived by equating MRS to the price ratio. the MRS depends on the type of utility function we are interested in. thus marshallian demand curve can be found out by using indifference curve when we actually know our utility function. thus the point at which our budget line ( whose slope is price ratio) is tangent to our indifference curve gives us the marshallian demand. on a quad plane we can plot IC and budget line and check for tangency. In equations we can equate the 2 slopes and find it.