Which of the following is not a characteristic of an income-leisure indifference curve? (M income on the y-axis) O A. Indifference curves are negatively sloped. O B. Indifference curves are relatively flatter for people who place low value on money income. O C. The farther northeast the indifference curve, the higher the level of utility. D. Indifference curves are steeper at the left than at the right.

Which of the following is not a characteristic of an income-leisure indifference curve? (M income on the y-axis) O A. Indifference curves are negatively sloped. O B. Indifference curves are relatively flatter for people who place low value on money income. O C. The farther northeast the indifference curve, the higher the level of utility. D. Indifference curves are steeper at the left than at the right.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.4P

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please only do: if you can teach explain each partc: what does it mean? can you show graphs: For these to be optimal choices with such preferences, the indifference curve through a must lie entirely on or above the budget line associated with (p, w), and simi- larly for r' for the budget line associated with (p', w'). how do you know this:Because each of these bundles lies below the other budget line, this implies that the indifference curves must cross, which is impossible. can you show graphs: note that (3,1) is a conver combination of x and x', so for conver preferences must be weakly preferred to x (the less preferred bundle between a and a'). But then the bundle (3,5/3) must be strictly preferred z, contradicting that is optimal given the initial budget set
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