Q: Consider the following indifference curves. MRS =-1 U4 U2 U3 UI Suppose the price of X is $1.50 per…
A: This is a ‘consumer choice’ problem. This principle of rational choice allows one to derive the…
Q: Suppose that indifference curves are described by straight lines with a slope of −b. Given arbitrary…
A: Straight-line indifference curve: The straight-line indifference curve has a constant slope…
Q: Q.4 Consumer attains his/her equilibrium at a point where the budget line: (a) Is below indifference…
A: Indifference curve: - it is the graphical representation of different combinations of two goods that…
Q: Is the indifference curve of U(x1,x2)=max(x1,x2) considered to be the curve for a perfect complement…
A: The utility function for perfect complements is given by: U(x1, x2) = min (x1, x2). Suppose a…
Q: There are two shows on Netflix that Jeff can watch, Show 1 and Show 2. Where x₁ measures the number…
A: Indifference curve:- An indifference curve can be explained as graph that shows a group of…
Q: Define indifference curve and budget line and their slopes. Discuss various properties of the…
A: An indifference curve, with respect to two commodities, is a graph showing those combinations of the…
Q: Define indifference map in not more than 2 lines
A: Before getting to the definition of indifference map we must first understand what is indifferent…
Q: indifference curve
A: Indifference curve (IC) is the locus of various combinations of commodities yielding same utility.…
Q: Define the indifference map for an individual.
A: The want satisfying power of a commodity is termed as the utility. As a consumer consumes a good…
Q: Explain why non-convex indifference curve has a corner solution instead of interior solution?
A: IC (Indifference curve) shows the different agreement of two commodities between which a consumer is…
Q: For each of the following utility functions (i) derive the equations describing the indifference…
A: Note: As per the guidelines we're only entitled to answer only first three parts of the MCQ type…
Q: Explain why most indifference curve are convex??
A: In economics the indifference curve is usually denoted as the contour line merely where the value of…
Q: Determine which, if any, of Properties 4–1 through 4–4 are violated by the indifference curves shown…
A: An indifference curve is a graph showing combinations of two goods that give the consumer equal…
Q: The value in Y axis has changed from 14.94 to 10.98 and the value in X axis has changed from 9.12 to…
A: Change in Y is 3.96 Change in X is 6.83
Q: Suppose you have the following Utility function: U = U(x, y) = (x − γ) ^α (y − δ) ^β (a) Write…
A: U(x, y) = (x − γ)α (y − δ)β Total Differential : dU=[∂U/∂x]dx+[∂U/∂y]dy ∂U/∂x=α(x − γ)α-1(y − δ)β…
Q: Which one of the following is incorrect about the indifference curves? All combinations in an…
A: Indifference Curve: An indifference curve represents various combinations of two commodities that…
Q: Q12. If indifference curve is straight line downward sloping, (a) MRS is increasing (b) MRS is…
A: According to the given question An indifference curve is a curve which is actually and generally…
Q: J 4 a. Define an Indifference Curve (IC)
A: In today's microeconomics, indifference curves are utilised to show consumer preferences and…
Q: How do indifference curves represent the consumer's preferences?
A: The indifference curve is a mathematical representation of the combination of all the consumption…
Q: Explain why indifference curvesa. are downward sloping.b. are convex to the origin.c. do not cross.
A: The indifference curve shows all the different combinations of two goods that provide the same…
Q: Consider the following indifference curves. UI U3 U4 U2 A tangency solution is never possible in the…
A: A tangency condition is when the budget line touches the indifference curve at some point. The…
Q: Derive utility maximisation of a consumer using the tool of indifference curve analysis
A: An indifference curve is defined as a curve which shows various combinations of two goods that the…
Q: discuss the three assumptions of indifference curves.
A: "Utility is the usefulness of a commodity for the consumer." When the consumer derives the same…
Q: What can be the implications of a positively sloping indifference curve?
A: Indifference curves are those curves that represent combinations of two goods that give the same…
Q: Slope of Indifference curve is convex to origin because of Select one: a. MRS is vertical Ob. MRS is…
A: Indifference curve is the locus of points showing different combinations of two commodities, which…
Q: Why is the slope of an indifference curve convex? Which is the best indifference curve?
A: "Indifference curve is defined as the locus of point of combination of two goods, good 1 and good 2,…
Q: 47. When indifference curve is L shaped, then two goods will be
A: Answer is given below
Q: What are indifference curves?
A: The utility is a want satisfying power of a commodity. Marginal utility is the additional utility…
Q: Explain the derivation of the demand curve of a consumer using the indifference curve theory.
A: At the utility-expanding arrangement, the consumer's marginal pace of replacement (the total worth…
Q: T or F? A consumer who is unable to detect small differences in the amount of water in her beer…
A: A binary relation Q is transitive if xQy and yQz implies xQz. In this case, note that, if Q is…
Q: Which of the following does NOT describe the optimal choice condition slope of budget constraint =…
A: Indifference curve: - it is the graphical representation of different combinations of two goods that…
Q: e marginal rate of substitution measures the distance between one indifference curve and tne •True
A: Marginal Rate of Substitution : The Marginal Rate of Substitution can be defined as the amount of…
Q: How to explain indifference curve and also describe the properties of indifference curve?
A:
Q: Economists use "indifference curves" to indicate individuals' preferences. These curves are parallel…
A: The indifference curve represents the consumer's preference and is downward slopping and do not…
Q: For Mary, shampoo and conditioner are perfect complements. She likes to use 1 squirt of shampoo and…
A: For Mary, shampoo and conditioner are perfect complements. 1 squirt of shampoo is used with 1…
Q: Why is it impossible for two indifference curves to intersect one another?
A: Indifference curves show various combinations of goods between which the consumers are indifferent.…
Q: Which are the three main assumptions of indifference curves? Please do the comparison with each…
A: Indifference curve: It refers to curve that shows the combination of two goods that a consumer can…
Q: How do we decide the amount we buy on the indifference curve? MU1/P1 = MU2/P2 %3D MU1/P1 = P2 MU1/P2…
A: Indifference curve shows the combinations of goods that give consumer the same level of…
Q: Amy enjoys eating muffins and scones. The following graph displays one of Amy's indifference curves,…
A: The MRS is the amount of a product that a consumer is willing to sacrifice in order to get 1 unit…
Q: Which of the following is NOT true about indifference curves? O They are downward sloping O They do…
A: An Indifference curve is a locus of the combination of all the points that represent a different…
Q: Q-: Define indifference curve and elaborate different varieties/types of indifference curve
A: An indifference curve shows a combination of two goods or services that provide the consumer with…
Q: An indifference curve is also known as___________.
A: Indifference curve - It is a graph that depicts the combination of two goods where at every point…
Q: Q.2 The slope of the indifference curve is equal to which of the following? A. One B. Marginal…
A: According to the given question Indifference curve was first named by the economist Pareto it…
Q: True or False. As you move to the right of any indifference map, consumer utility always increases.…
A: The indifferent map represents different bundles of two commodities that an individual can consume…
Q: n indifference curve,
A: In the given case, Angela has rejected an offer considering fairness of work. This is an additional…
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- 1) (15 points) A student has a lunch utility function U(S,P) = 8S + 3P, where S is the number of salads per month and P is the number of pizzas per month. The price of a salad is $5, the price of a pizza is 8, and his monthly income for lunch is $80. a) (5 pts.) Using the x-axis for S and the y-axis for P represent the indifference curves of the student corresponding to the levels of satisfaction U = 48, U = 72 U = 120. How does this student perceive pizzas and salads? b) (5 pts.) Find and draw the budget line of the student. Specify both the intercepts and the slope. In the same graphic, you should include the indifference curves from part (a). c) (5 pts.) Compute and represent graphically the equilibrium of the student (how many salads and pizzas he is likely to have per month). Your graph should include the budget line, the indifference curve, and the optimal consumption point.Jane insists on consuming 4 bowls of yogurt with 2 bananas. If the price of banana is $1 per unit and the price of yogurt is $1 per bowl, then if Jane income is $m, the slope of the Engel curve for bananas will be (a) negatíve and constant. (b) negative and increasing. (c) zero. (d) positive and constant. (e) None of the above.Number of Sodas per day Total Utility Marginal Utilit 1 20 35 3 47 12 4 10 Refer to the table, The marginal utility of the second soda per day is L. (Answer should be in the form of numerical characters, e.g. 20) Enter your answer here
- Greg has the following utility function: u=2057 20.43. He has an income of $96.00, and he faces these prices: (P1, P2) (9.00, 9.00). Suppose that the price of an increases by $1.00. Calculate the equivalent variation for this price change. =The value in Y axis has changed from 14.94 to 10.98 and the value in X axis has changed from 9.12 to 2.29, what is the slope of the indifference curve at this point?b) Define indifference curve and discuss the characteristics of an indifferencecurve.
- Quantity of D 10 8 N 0 to 2 000 Refer to the budget line shown in the diagram. The absolute value of the slope of the budget line is Multiple Choice 4 6 8 10 Quantity of C two. one-half. five. ten. 20 10,981 AUG 22 < Prev 7 of 12 átv (@1. Joan is on summer break and spends most of her time either playing video games or browsing the internet. Her utility function is U (q1, 42) 399.24$, where qi represents the 0.2,0.8 %3D hours spent browsing the internet and q2 hours playing video games. Joan does not have a budget constraint but she has 15 hours to spend on both activities. (a) Write the equation for one of Joan's indifference curves when the level of utility is equal to 100. (b) Write Joan's time constraint. (c) Find the amount of hours that Joan will spend on each activity that maximizes her utility and satisfies her time constraint. Use either the substitution or Lagrangian method. (d) Can Joan afford any bundle that yields a utility of 50? Explain. (e) How does Joan's optimum amount of time spent on each activity change if her utility function is U (q1, q2) = 5ln(3) + In(q1) + 4ln(q2)?Suppose a consumer has just enough money to afford the bundle of 3 apples and 2 oranges, and similarly she also has just enough money to afford the bundle of 2 apples and 4 oranges. (a) Denoting the number of apples with x and oranges with y, plot the two given bundles on a graph, and calculate the relative price of apples; pX / pY. (b) If she buys only apples with her budget, how many can she buy? If she buys only oranges, how many can she buy? Write down the budget equation for the consumer. (Notice that knowing two points on the budget line, you can write down the budget equation, even though you weren't given the prices nor the income explicitly!) (c) Suppose MUx = 20 and MUy = 30 at some point on the budget line. Is she maximizing utility by choosing this bundle? If not, should she buy fewer apples (and more oranges), or more apples (and fewer oranges), to increase her utility? (d) Forget about (c); instead, you learn that her utility function is u(x,y) = Axy^3 . What is her…