## Corner Solution – Perfect Substitutes: Demand Theory

Continuing on with demand theory. Previously we discussed the Cobb Douglas function, now we move into perfect substitutes and the corner solution. Here are some factors to keep in mind. 1. Indifference curves must interest one of the axis (not necessity or essential good) 2. Budget constraint line is such that the slope is greater … Continue reading Corner Solution – Perfect Substitutes: Demand Theory