Perfect Complements

Typic budg-line

Typic budg-line

A Income offer curve

B Engel curve

A Income offer curve

B Engel curve

The demand behavior for perfect complements is shown in Figure 6.5. Since the consumer will always consume the same amount of each good, no matter what, the income offer curve is the diagonal line through the origin as depicted in Figure G.5A. We have seen that the demand for good 1 is = m /(pi + p2}: so the Engel curve is a straight line with a slope of P\ + P2 as shown in Figure C.5B.

Perfect Complements Economics
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Project Management Made Easy

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