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: What information is contained in an indifference curve? Why are such curves Downward sloping
A: Information contained in the indifference curve is: It represents all those combinations of goods…
Q: If the slope of indifference curve is -0.8 and the change in X axis is 8, what is the change in Y…
A: A consumer maximizes his utility by consuming at a point where the indifference curve of the…
Q: Write down and explain the four properties of indifference curve.provide adequate graphs
A: The indifference curve shows various combinations of two goods that give the same level of utility…
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: What happen to the marginal rate of substitution as we move along the non linear indifference
A: Indifference Curve: This is the curve that shows the various combination of two goods that gives…
Q: Can indifference curves be thick? The figure to the right shows a thick indifference curve Relative…
A: The indifference curve is the combination of different bundles of two goods. All these bundles give…
Q: What are the features or properties of the INDIFFERENCE CURVE in economy?
A:
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: James lives by the motto “ Eat, drink and be merry today, for tomorrow doesn't matter." If today's…
A: The indifference curve refers to all possible combinations of two goods that can be consumed by a…
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: MRS is constant along a linear indifference curve.
A: The 'marginal rate of substitution' along an indifference curve is given by MRS=-MUxMUy
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: 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: Which indifference curves violate the assumption of monotonicity? U3 only. U1 and U3. U1, U3 and U4.…
A: The assumption of monotonicity is that the indifference curve is negatively sloped. If the…
Q: If the price of one of the products is associated with indifference curves increase, all else the…
A: Answer - If the price of one of the products is associated with the indifference curves increase,…
Q: Differentiate between isoproduct curves and indifference curves
A: The term ISO quant was used by R. frisch
Q: Explain why convex preferences means that “averages are preferred to extremes.”
A: The convex preferences in the economy indicate that the consumers prefer the averages rather than…
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: Indifference curves (and isoquants) have certain properties. Match the property to the assumption…
A: An indifference curve shows various combinations of two goods that give the consumer equal utility…
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: Isn't the utility function is perfect complement: min{} and the indifference curves should be…
A: A potential extension to the analysis is general equilibrium analysis or how demand and supply…
Q: Consider the following equation for an indifference curve: y = 20/x. At point A (2, 10), the MRS is?
A: Given data: The equation for indifference curve is y=20x Point is A2, 10
Q: Explain how indifference curves can never cross.
A: Indifference curves can never cross each other. We can explain this with the help of the two axioms…
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: In case of the complementary goods what is the shape of the indifference curve ??
A: According to the given question Actually complementary goods are those goods which are initially an…
Q: How to explain indifference curve and also describe the properties of indifference curve?
A:
Q: If Brian Mulroney's money income increases and the prices of products J and K both increase, then…
A: The line that depicts a combination of both the goods that could be bought by a consumer through the…
Q: Explain why crossing indifference curves would lead to a logical inconsistency.
A: Indifference curves: Indifference curves show the various combinations of two goods that allow for…
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: 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: i student has a quasi-linear utility function .hore atui ono
A: The claim that both students eat too much is false, both students eat nothing at all Explanation -…
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: Define indifference curve .
A: Utility refers to the want satisfying power of a commodity. The two approaches used to measure…
Q: Define A consumer prefers a higher indifference curve to a lower one.
A: An ‘indifference curve(IC)’ refers to a graph that shows the combinations of two commodities. These…
Q: If the utility function is : u= q1q2. find the slope of an indifference curve. What will be its…
A: Slope of indifference curve = Marginal rate of substitution (MRS).
Q: Higher Indifference curve means: (a) Consumer has got increment in income (b) Higher utility (c)…
A: # by the name itself we can understand that all the points which lie on an indifference curve…
Q: If a consumer is indifferent between two consumption bundles: The two bundles lie outside the budget…
A: Ans 1) A consumer is a person who demands goods and services. He chooses between different variety…
Q: A higher indifference curve shows
A: A higher indifference curve shows higher level of
Q: ence curve and Discuss the properties of Indifference curv
A: Indifference curve(IC) is the locus of various combinations of commodities yielding same utility. If…
Q: If the price of one of the products associated with indifference curves decreases, all else the…
A: For the aforementioned question, the correct option is C.
Q: n indifference curve,
A: In the given case, Angela has rejected an offer considering fairness of work. This is an additional…
An indifference curve is also known as___________.
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- Why do we expect that indifference curves will never cross?It is known that the indifference curve is convex. What does this tell you about the relationship between the goods?Draw an indifference map for each of the following functions. U(x,y) = x2y3U (x, y) = 2x + 3yU (x, y) =x + ln(y)U (x, y) = min{2x, 3y}U (x, y) = max{3x, 2y}
- discuss the three assumptions of indifference curves.Describe the main characteristics of indifference curve.Kamau's utility function for watching football (F) and drinking a soda (S) is given by the function (F,S)=F°S . Last month, the price of a football ticket was Ksh.100 and the price of Soda was Ksh.25. This month the price of soda has risen to Ksh.37.5, the price of a football ticet has remained the same. For both months, Kamau's income has remained to be Ksh750. Calculate Kamau's CS, CV and EV.