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3. Suppose you are trying to understand a person’s choices between spending on two goods, X...

3. Suppose you are trying to understand a person’s choices between spending on two goods, X and Y.  For each situation below, draw an indifference curve for the two goods in a graph with Y on the vertical axis and X on the horizontal axis.

a. When the two goods are perfect substitutes to each other,

b. When the two goods are perfect complements to each other,

c. When the two goods are imperfect substitutes for each other, as in a Cobb-Douglas utility function.

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