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Trang has strictly convex indifference curves and is indifferent between the bundles (16, 2) and (2, 4).
a) Use the definition of strict convexity to show that Trang prefers (9, 3) to (2, 4).
b) Can you say whether Trang would prefer (8.9, 2.9), (9.1, 3.1) or (1, 1) to (2, 4)?
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Smith Co saw a reduction in quantity of widgets is sold, down to 900 units. What is cross elasticity of demand between two brands of widgets.
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