inter micro Flashcards
(4 cards)
1
Q
assumptions of consumer preferences
A
more is better
transitivity
convexity
completeness
2
Q
giffen good
A
inferior good where the demand for the product increases as its price increases
3
Q
First fundamental theorem of welfare economics
A
if everyone trades in competitive marketplace all mutually beneficial trades will be completed and resulting equilibrium allocation will be pareto efficient
4
Q
- Second fundamental theorem
A
