Consider the preferences represented by the following indifference curves. These preferences are (check all that apply - if there is not enough information to confirm thatone of these applies, leave it unchecked).good 2Select one or more:a. Monotoneb. Strongly monotonec. Convexd. Strictly convexe. None of the abovegood 1

The given indifference curves represent straight lines, which suggests perfect substitutability…

Answered: Consider the preferences represented by…

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 2CQQ

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Consider the preferences represented by the following indifference curves. These preferences are (check all that apply - if there is not enough information to confirm that one of these applies, leave it unchecked). good 2 H Select one or more: a. Monotone b. Strongly monotone C. Convex d. Strictly convex De. None of the above good 1
Consider the preferences represented by the following indifference curves. These preferences are (check all that apply - if there is not enough information to confirm that one of these applies, leave it unchecked). good 2 Select one or more: a. None of the above b. Strictly convex C. Monotone Od. Strongly monotone O e. Convex good 1
Consider the preferences represented by the following indifference curves. These preferences are (check all that apply - if there is not enough information to confirm that one of these applies, leave it unchecked). good 2 Select one or more: a. Strictly convex b. Monotone Oc. Convex d. Strongly monotone Oe. None of the above good 1
3. We claimed in the text that if preferences were monotonic, then a diag- onal line through the origin would intersect each indifference curve exactly once. Can you prove this rigorously? (Hint: what would happen if it intersected some indifference curve twice?)
Gopal is a rational consumer and consumes two goods X and Y. Is a cardinal measureof utility or satisfaction necessary in order to sketch a set of indifference curves? Whatare the main characteristics of indifference curves? On the same set of axis draw threeindifference curves showing increasing marginal rate of substitution as we move downthe indifference curve. Please answer it in little more detail as it is descriptive
Suppose a consumer buys only two goods x and y and spends her entire income on these teo goods. She must first but some fixed quantity y before she buys any amount of x. After purchasing y; what matters is the quantity of x only and utility will increase only by buying more x. Please Draw the indifference curves. * Please draw the indifference curves as the solution*
Give examples by drawing a graph of each of the following. Please draw your graphs neatly using a ruler to draw the axes and label your graphs completely. In each case draw ar least three indiffer- ence curves and indicate clearly the direction of increasing prefer- ence. (i) the preferences being convex but not strictly convex. (ii) the preferences being strictly increasing but not convex.
We claimed in the text that if preferences were monotonic, then a diagonal line through the origin would intersect each indifference curve exactlyonce. Can you prove this rigorously? (Hint: what would happen if itintersected some indifference curve twice?)
1. Is it impossible for two indifference curves to intersect one another? why? 2. What does it mean that preferences are complete? Now would the real-life implica- tions of this assumption look like?
What does the law of equi marginal utility states? MU. MU, MU, Px P₂ P₂ MU₂ x P = MU₂ x P₂ =MU₂ x P₂ MU Px 1- MU MU. Px MU, MU > MU MU₂ MU P₂ P₂
Joon has preferences over two goods only-beer and pizza, both of which he loves. His initial budget line goes through bundles A and B; he chooses A. When prices change such that he faces budget line through bundles B and D, Joon chooses B. Qpizza a f b B h g D I Qbeer We want to determine which bundles are better for Joon than bundle B and which bundles are worse. For each of the areas on the graph, labeled from (a) to (j) we can say, given the information provided, that
Consider the preferences represented by the following indifference curves. These preferences are (check all that apply - if there is not enough information to confirm that one of these applies, leave it unchecked). good 2 Select one or more: O a. Convex b. Strongly monotone Oc. None of the above d. Strictly convex e. Monotone good 1

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