Q: what does an indifference curve look like of 2 goods U(J,K)=min(K,2J^2) is it a hyperbola? J IS ON…
A:
Q: Write down and explain the four properties of indifference curve. Provide adequate graphs.
A: A consumer maximizes his utility by consuming at a point where the indifference curve of the…
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: Consider the following indifference curves. U1 U3 U4 U2 Which indifference curves violate the…
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Q: Is the indifference curve of U(x1,x2)=max(x1,x2) considered to be the curve for a perfect complement…
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A: Indifference curve:- An indifference curve can be explained as graph that shows a group of…
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 most indifference curve are convex??
A: In economics the indifference curve is usually denoted as the contour line merely where the value of…
Q: Q) U = xy and y = x(1+y) Are points (1,9) and (5,1) on the same indifference curve? Explain it…
A: An Indifference curve represents different combinations of two goods ( say , good X and good Y )…
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: Abhishek's utility function is: U = min {2x– y, 2y – x} Which letter resembles Abhishek's…
A: Utility: - Utility is the satisfaction derived by any consumer from consuming a good or service.
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: Explain the difference between indifference curve and iso-quant curve and similarly between budget…
A: Utility refers to the benefits that an individual derives from the consumption of goods and…
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: The CHRIS AND DAVID problem Each day Chris buys 2 coffees and 1 tea. Where Chris resides, coffee is…
A: Chris: 2C+1T PC= $1 PT= $0.5 David: 1C+2T PC= $0.5 PT=$1
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: Given the indifference curve shown to the right: Q 10- a. What is the marginal rate of substitution…
A: * answer :- * a) Marginal Rate of Substitution = Change in good Y ( books)/ change in good X( CD)…
Q: Provide the critic of the cardinal utility and justify how the ordinal or indifference theory is…
A: A cardinal utility depicts that the welfare of an economy can be directly be given a value as it is…
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: 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: 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: swer this question: Indifference curves could intersect, which leads to the same level of…
A: 1st Statement is wrong because IC cannot cross. This is because the curve above the contacts gives…
Q: Why indifference curves never intersect. Prove graphically?
A: IC(indifference curve) shows us the various combination of two products/goods where the buyer is…
Q: What are indifference curves?
A: The utility is a want satisfying power of a commodity. Marginal utility is the additional utility…
Q: 2. Indifference curves are convex to the origin because A. O Two goods are perfect substitutes B. O…
A: Indifference curve shows the combination of two goods which give equal amount of satisfaction to the…
Q: Suppose Jane is always willing to give up one apple for one orange. Then, the MRS for apples to…
A: In economics, an individual has the face the trade-off between the alternatives to make different…
Q: 1. Find the MUx, MUy , and MRS equations for each of the following utility functions. Which of the…
A: Since you have posted multiple parts question, we will solve the first three for you. If you want…
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: Consider the bundle 2 pizza and 8 coke. Label this point. What can you say about the slope of the…
A: Indiffernce curve graphical representation of the combination of two goods that the consumer is…
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: 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: 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: Breno has a perfect substitute indifference curve with MRS = 5 between Coke and Pepsi. Suppose MRS >…
A: In the perfect substitute goods case optimal condition be defined by the comparison of MRS and…
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: 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: X a e b d
A: Here, the given figure provide information about the budget line and three indifference curves.
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: 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: Explains it correctly nd not copy paste. Q)The assumption that consumers always prefer more of a…
A: Indifference curve is a curve that represent different combinations of two goods that yield equal…
Q: The convex shape of indifference curve is dur to _______ marginal rate of Substitution
A: # Indifference curve is the locus of points which shows the combination of two goods which makes the…
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…
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A: The theory of indifference curve analysis was explained by hicks and Allen. According to this theory…
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- Why is the consumer’s MRS equal to the price ratio at the optimal consumption point? Givea graphical interpretation of this fact in XY space (hint: what do we know about the indifferencecurves and the budget line?).Graph and explain indifference curves for the following situations:(i) An individual has constant marginal utility toconsumption in both periods.(ii) An individual does not derive utility from this period’sconsumption, but does from the next period’sconsumption.(iii) An individual’s utility decreases with consumption inboth periods.Which are the three main assumptions of indifference curves? Please do the comparison with each other.
- Why do we expect that indifference curves will never cross?discuss the three assumptions of indifference curves.I like drinking Smirnoff and Stoli Vodka, but I really only careabout the total amount of alcohol I get out of it. They areperfect substitutes. Smirnoff is sold in liter bottles that are100 proof (that’s 50% alcohol). Stoli is sold in liter bottlesthat are 80 proof (40% alcohol). What is my utility functionfor bundles of these two vodkas? What do my indifferencecurves look like?
- Isn't the utility function is perfect complement: min{} and the indifference curves should be L-shaped instead of convex and concave?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?)Suppose that the following utility function is given U(X,Y) = -X-ywhich of the following is correct? X is a good and Y is a bad and indifference curve is negatively sloped. Both X and Y are goods and indifference curve is negatively sloped. Both X and Y are bads and indifference curve is negatively sloped, OYisa good and X is a bad and indifference.curve is positively sloped.
- 1. Find the MUX , MU, , and MRS equations for each of the following utility functions. Which of the below utility functions exhibit diminishing MRS? (That is, which of the below yield convex indifference curves?). U = x0.6y0.4, U = x2 + y² X,y>0. U = 2x + 4y. U = x*y?. U = x®ybExplain why non-convex indifference curve has a corner solution instead of interior solution?Suppose that one of your friends does not care if she consumes spaghetti (S) or noodle (N). She wants toconsume either two-dish spaghetti or two-dish noodle or any combination of both which adds up to twodishes.(i) Write the utility function of your friend to represent his preferences.(ii) Draw couple of indifference curves of your friend on graph with appropriate labels.(iii) Denote prices as Pn, Ps; income as M. If Pn < Ps, then determine the demand function of your friend foreach product as a function of prices and income.