Theoretical Questions: The following sentences contain an error that you must correct:
1/Measured utility theory is based on the assumption that only one good is consumed, and that utility increases as consumption increases, up to infinity;
2/The indifference curves of the same consumer do not intersect because an intersection would mean the consumer would consume two different quantities of x and y to achieve a certain utility, which is illogical
3/if the price of a good increases, the consumer’s utility increases, as the equilibrium point, when graphically represented, shifts downward;
4/The Angle (income) curve is derived from the price-consumption curve. It is defined as the curve that expresses how much consumer utility changes as their income changes
5/When the price of a good decreases, the substitution effect will be negative due to the inverse relationship between the quantities consumed and the price. If the income effect in this case is negative, then the good under consideration will necessarily be an ordinary good.
Requirements:
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