Criticism of Curve Approucl

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Criticism of Curve Approval

There are, however, some economist.straight line indifference curves. It is a case of substitutes. Since  these are straight lines  tang ency is not possible. 0 The equilibrium position will depend on the slope of the price line relative to the slope of indifference curves. If the slope of the price line PL is greater he will be at equilibrium at P and buy only Y good. But if it is less as in  he will be in equilibrium at Land guy good X.

GOOD X

GOOD X

represents the case of complementary goods. There the indifference curves ale light-angled. In such a case the consumer’s equilibrium  be at the corner  the curve where the price.

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Criticism of Curve Approucl