Draw a Set of 4 Indifference Curves for a Pure Utilitarian and a Set of 4 Indifference Curves for a Pure Rawlsian & position the respective Indifference Curves to be consistent with the given Contact Curve, below? Pure Rawlsian /Justice
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- what is satiation point? And how it is helpful in deriving indifference curve?What assumptions are necessary for supposing that individual preferences can be inferred and valued from the choices that individuals make?give a reasonThe figure below show the initial optimal point of a family who has to decide how much kids (K) to have in 5 years and at the same time how much of all other goods to consumer (measured as composite good in dollars). Now assuming that kids are inferior goods/services, show the new optimal point as e2 if the income of the family increases. IC₁ to K
- Good Y Use this figure of a feasible frontier and a set of an agent's indifference curves to answer the following three questions: A B C D E Good X shot 2024-... i Q Q Economists use the symbol ">" to mean "is preferred to". For example, if for Ash JK, it means that they prefer J to K. Which of the responses below correctly indicates this agent's preferences over the five labeled points on the feasible frontier, listed from most preferred to least preferred? OD C B E A OC B D A E OB A C D E OE D C B>A OA B C D E. Show that Cobb-Douglas preferences are homothetic preferencesT/F Explain Utility numbers cannot be negative since higher utility means a con- sumer is better off.
- Second Fundamental Theorem of Welfare Economics a. Describe the theorem, making sure that you define clearly the terms used in the description (e.g. if you use the term “efficient” you have to describe what this means). b. Explain why the theorem implies that there is no intrinsic trade-off between efficiency and interpersonal equity. c. Demonstrate your argument using an Edgeworth box, making sure that you describe all the elements of the box appropriately.GLASS-1: Short Individual Assessment 10 A B E D U. 1 2 4 cheeseburgers 1. Refer to the figure as you answer the following questions: Bundle E has one less cheeseburger than Bundle D. What assumption(s) would still allow you to say that Bundle E is preferred to Bundle D? Briefly explain. d. Consider the utility function of individual A given by UA (X,Y) = Xº.5y0.5 in answering the items below: 2. Calculate the marginal utility for each good (MU,x & MUy) of individual A and the marginal rate of substitution (MRSxY). Interpret your computed values If Px = 0.5, Py = 1, and I = 10, solve for X*, Y*, and U* using the Lagrange a. b. Multiplier Method. pearl shakesConsider a couple's decision about how many children to have. Assume that over a lifetime a couple has 100,000 hours of time to either work or raise children. The wage is $10 per hour. Raising a child takes 10,000 hours of time. a. Make a graph with the budget constraint showing the trade-off between lifetime consumption and number of children. (Ignore the fact that children come only in whole numbers!) Show indifference curves and an optimum choice. b. Suppose the wage increases to $15 per hour. Show how the budget constraint shifts. Using income and substitution effects, discuss the impact of the change on number of children and lifetime consumption. c. We observe that, as societies get richer and wages rise, people typically have fewer children. Is this fact consistent with this model? Explain.
- Pls help with below homework. Assume that the consumers A and B want to maximize utility, that they consume the same goods price ration. What decision rule would they employ, and how would this relate to the Welfare Frontier? (Assume that the goods are X and Y).gets budget line compare to the original one? 2. Sketch the budget constraint for a prisoner at the general penitentiary who has been smuggled a pack of cigarettes (with 20 cigarettes) if one cigarette can be traded for two cell-phone calls. Consider the consumption bundles indicated on the 940A.Suppose that Fiona likes cashews better than almonds and likes almonds better than walnuts. She likes pecansequally well as hazelnuts and prefers hazelnuts to almonds.Can we characterize Fiona’s preferences of being “complete”? Can we characterize them of being “transitive”?Justify your answer.B. “Pertaining to different good characteristics; it is possible to distinguish between three different types ofindifference curves. One would be the typical negatively sloped convex function, a second would be a negativelysloped straight line, and a third would be an L-shaped function”.Examine the validity of this statement. Is it possible for the indifference curve to be positively sloped?