EXERCISE 10.1 THE CONSEQUENCES OF PURE IMPATIENCE
Draw the indifference curves of a person who is more impatient than Julia in Figure 10.3b, for any level of consumption now and consumption later.
Draw a set of indifference curves for Julia if she does not experience diminishing marginal returns to consumption but has pure impatience. Would she then want to smooth her consumption?
Draw a set of indifference curves for Julia if she does not experience diminishing marginal returns to consumption and has no pure impatience.
Please refer to the book attached in order to answer this question.
