O.P.C. - Perfect Substitutes

Cards (4)

  • p1 > p2 = entire income spent on good 2
  • p1 < p2 = entire income spent on good 1
  • p1 = p2 = anywhere apart from corners are optimal
  • How it relates to the price of the other good = how the changes in the price of good 1 matters in terms of comparison with good 2