Joe's indifference map for lobster (L) and soda (S) is shown in Figure 4.9 below along with his budget line. Will Joe choose point a? Explain your answer in terms both of MRS and the level of utility.

Q: The consumer is in equilibrium when        a)the budget line is tangent to the indifference curve at…

A: Consumer equilibrium is a point at which consumer gets the most satisfaction possible from their…

Q: Suppose that a consumer's indifference curve map does not obey the assumption of a diminishing MRS,…

A: An indifference curve shows all the combination of goods that gives same level of satisfaction or…

Q: Fill in the missing words/ phrases: An indifference curve shows all possible combinations of _(3.1)_…

A: Consumer theory studies the behavior of consumers, how they spend their income on which goods.…

Q: At each point on an indifference curve:             total utility is the same.             the…

A: The indifference curve analysis is based ordinal measurement of utility.  Ordinal measurement of…

Q: The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget…

A: The utility is the amount of satisfaction received from the consumption of a good or service.

Q: With reference to the indifference theory with good Y on the vertical axis and good X on the…

A: Indifference curve is the graph which shows the two combinations Of two goods which gives equal…

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: Provide short answer for the following? Diminishing marginal utility.         2. Indifference…

A: 1.Diminishing marginal utility. it implies that keeping other things unchanged as we consume more…

Q: Consumer attains his or her equilibrium at a point where the budget line:- (1) is below indifference…

A: The consumers in an economy are considered to be one of the most important entities in the market.…

Q: The figure below shows one of Josie's indifference curves between peaches and cream-the indifference…

A: Josie's income=$32Price of peaches=$4Price of cream=$4Now,Maximum peaches Josie can…

Q: indifference curve at utility level equal to 20 is?

A: Utility means the satisfaction that a consumer gains from consuming a product or service. Utility…

Q: A well-behaved utility function is assumed to exhibit monotonic and convex preferences. (1) Define…

A: lets solve part 1 and part 2 in the following steps

Q: Which of the following statements is correct? Indifference curves cannot intersect due to the…

A: Indifference curve is a locus of different combinations of two goods that are consumed by consumers…

Q: An indifference curve diagram has movies on the vertical axis and sodas on the horizontal. As the…

A: Marginal rate of substitution is defined as the number of units of  commodity 'x' a consumer is…

Q: True or false.  Indifference curves are a graphical way to illustrate a person's tastes and…

A: The economics as a study is based upon the basic idea that the economies, and the societies around…

Q: Consider the following equation for an indifference curve: y = 20/x. At point A (2, 10), the MRS is?

A: The indifference curve shows us the consumption of two commodities that are consumed by the consumer…

Q: An indifference curve slopes down towards right since more of one commodity and less of another

A: To find : Indifference curve slopes down towards right since more of one commodity and less of…

Q: If a person's indifference curves can be represented as a straight line, the person views the goods…

A: The Indifference curve (IC) shows the various bundles of two goods that the consumer agrees to…

Q: he rate of market substitution is:             The consumer’s marginal utility             The…

A: The rate which depicts the amount of one good being substituted for another good and is being used…

Q: t is the property of indifference curve that no two ICs can intersect each other because:   a. same…

A: According to the ICs property that two ICs cannot intersect each other-  The arcs of indifference…

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: Which of the following statements is true? OThe budget line shows the utility associated with all…

A: The budget line shows all the affordable consumption bundles so the first statement is incorrect.…

Q: Higher Indifference curve means: (a) Consumer has more income (b) Price of goods have reduced (c)…

A: Concerning two commodities, an indifference curve is a graph that shows which combinations of the…

Q: .Draw the indifference curve diagrams for the utility functions listed below. Plot x on the…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Given the indifference map and the budget line of the consumer, show with a diagram how does the…

A: Taking  MRS = MU1/ MU2 and price ratio = P1/P2. Satisfaction is maximized when MRS = Price ratio.

Q: Draw Shahab’s budget constraint if he has income/ budget of Rs. 1000 which he can spend on buying…

A: Dear student, You have put multiple questions in single post. I am answering first question for you.…

Q: Suppose the two goods, are perfect complements at the ratio of 1 to 1. P1=10 and P2=40. I=1000. Find…

A: A indifference curve is a line showing every one of the mixes of two products which give a customer…

Q: Which feature of indifference curves guarantees this result? a. Concavit of indifference curves b.…

A: An indifference curve(IC) is a locus/contour of the different bundle that has the same utility at…

Q: A consumer is choosing between magazines and books. Several indifference curves are shown on the…

A: Given that: The Income of the consumer= $500 The Price of books = $10 Suppose, the consumer is…

Q: A convex indifference curve implies what type of behavior? diminishing marginal utility…

A: Indifference curve are defined as the locus of the points with same utility level at each point.

Q: Draw Shahab’s Indifference curves for Pizzas and Pepsi Cans. What does the slope at any point on…

A:

Q: For each of the following utility functions draw the indifference curve that passes through (1,1).…

A: To draw indifference curve , we just fix the utility to any arbitrary number and take some points.

Q: Plot and label 3 indifference curves for each of three consumers, using a different graph for each…

A: Utility function : U1 = x1*x2  U2 = min {x1/5  , 2x2 + 3 } U3 = 3x1  + 4x2  Individual 1 with…

Q: An increase in the price of good y would Select one: a. Shift the budget line b. budget line pivots…

A: Answer: b. budget line pivots from x-intercept to the left An indifference curve shows the…

Q: Examine and show with a graph how a consumer attains equilibrium under the Indifference curve…

A: Utility is maximized at the point of tangency between indifference curve and budget line. At this…

Q: The shape of a person's indifference curves between two goods depends on A) the marginal rate of…

A: Government has certain tax revenue with them through which they have to carry expenditure on…

Q: Molly loves hamburgers and soft drinks, but insists on consuming exactly one soft drink for every…

A: Molly consumes 2 hamburgers with 1 soft drink. They both are complimentary goods for her.The graph…

Q: Šketch indifference curve for the given utility levels. Use arrow to show the direction in which…

A: We will solve the first three subparts only. Please resubmit the question with any other parts you'd…

Q: During calamities, such as typhoons, fires, or the ongoing pandemic, the government provides…

A: A budget line depicts the combinations of two commodities that a consumer can consume given a budget…

Q: True or false.  A change in prices or income can alter preferences and thus the indifference curves…

A: In the mentioned question, we are asked whether there is any shift seen in the indifference curve…

Q: The budget line shows: all possible combinations of two goods that yield the same level…

A: Budget lines shows the combination of expenditure's of two different goods and the given level of…

Q: Suppose your only source of income is work and that you are paid $20 per hour. This determines a…

A: Optimal bundle is where budget constraint is tangent to indifference curve.

Q: Q2. UA = x + y2    and  UB = x - y2 Draw representative indifference curves for each type of…

A: Answer - Given in the question- UA = x + y2    and  UB = x - y2 1. Answer - Need to find- Draw…

Q: Indifference curves represent: a) Ability to pay b) Total Utility c) Marginal Utility d) None of the…

A: Total utility refers to the total satisfaction that a consumer gets from consuming a good. Marginal…

Q: Make a curve of the budget line curve with the Indifference curve, make a separation between the…

A: In economics, and in particular in consumer choice theory, the substitution effect is one aspect of…

Q: Indifference curves are convex to the origin because of: A) the assumption that more is preferred to…

A: Indifference curve shows combinations of two goods that give same level of utility to consumers.