Refer to Figure 4.3. Bundle and both have more of good than reference points and s. The curve traces out the difference curve when using reference point s. Let be the amount of good the individual must be given in order to be indifferent between bundle and bundle under reference point . Let be the amount of good the individual must be given to give up the SAME amount of good i under reference point . Which of the following is true?
A)
B)
C)
D)
Correct Answer:
Verified
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