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

Indifference curves and budget lines — practice question

(a)[12]

Compare and contrast the derivation of a consumer’s demand curve using Marshall’s marginal utility analysis with a consumer’s demand curve derived by indifference curves.

(b)[13]

Discuss how the effect of an increase in a sales tax (goods and services tax) can be analysed using indifference curve analysis.

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