Economics 9708 · AS & A Level · Indifference curves and budget lines

Indifference curves and budget lines — practice question

(a)[12]

Explain, with the help of a diagram, diminishing marginal utility and how it is connected to indifference curves.

(b)[13]

Discuss, using indifference curve analysis, how the effect of a rise in indirect taxation on the quantity demanded of a good varies according to whether it is a normal or inferior good.

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