With the help of indifference curve diagram (gift goods on one axis and all other goods on the other) to illustrate that one is better off receiving cash grant than a gift
Q: Two friends are discussing their plans for the month.One works at a movie theater and gets 10 free…
A: The marginal rate of substitution (MRS) for the person with a movie ticket can be calculated as…
Q: Refer to the indifference curve/budget line diagram below in Figure 4 for Jeremiah. He has $300 in…
A: Indifference curve shows different combinations of two goods that give same level of utility.
Q: (1) For each of the three Indifference Curve Maps, what can you infer about the relationship of the…
A: An indifference curve basically shows a combination of two commodities that supply the consumer with…
Q: ul in deriving indifference curve ?
A: Indifference curve(IC) is the locus of various combinations of commodities yielding same utility. If…
Q: Figure 2 10 30 Hotdogs (number per week) 3. Figure 2 shows Ronald's budget line. He has weekly…
A: The budget line, sometimes also called the budget constraint, shows all of the possible combinations…
Q: marginal utility for custard (U.). What is Amelia's marginal rate of substitution (MRS)? Give a…
A: Different utility levels of consumers are taken to be independent. This means that utility obtained…
Q: Table: Madeline's Preferences for T-Shirts and Coffee Consumption Bundle Quantity of T-Shirts…
A: Given The consumption bundle B contains 24 T-shirts and 4 cups of coffee and bundle C contains 21…
Q: Donuts Indifference Curve 3 D Indifference Curve 2 Indifference Curve 1 Cake to Figure#4 Which of…
A: As they lie on same IC so A give same satisfaction then D and thus are more preferred.
Q: Suppose an individual has the following utility function: U(x,y)=−4(x−5.5)^2 −2(y−3.5)^2 Further…
A: Utility: It refers to the maximum satisfaction which a consumer gets from the purchase of the goods…
Q: M1
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: If bundle A lies on an indifference curve ai de ) and bundle B lies above of the curve (i ), the…
A: If bundle A lies on indifference curve while B lies above the curve, then it implies that B would…
Q: The price of DVDS (D) is $20.00 and the price of CDs (C) is $20.00. Katrina has a budget of $100.00…
A: Introduction: A budget is a list of how much money has been set aside for a certain goal, as well as…
Q: 1. Given the indifference curve above, which of the Points a, b, c, d, or e. Yields the highest…
A: Indifference curve refers to the combination of 2 goods that gives the same satisfaction to the…
Q: Graph and explain indifference curves for the following situations: (i) An individual has constant…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Suppose consumer are always ready to trade k units of good X for w Then, I poo8 10 X and Y are goods…
A: The marginal rate of substitution is the slope of an indifference curve. It measures units of good X…
Q: 11) An individual consumes only two goods, X and Y. Which of the following expressions represents…
A: A consumer becomes indifferent when two items are combined because they both provide the same level…
Q: a. A consumer is willing to trade 3 units of x for 1 unitof y when she has 6 units of x and 5 units…
A: Utility refers to the amount of satisfaction that a consumer gets by the consumption of goods and…
Q: As a consumer moves away from the origin onto higher indifference curves, what happens? O A. The…
A: Indifference curve shows different combinations of two goods that give same level of utility.
Q: 3. Juliette spends $48 each month on Oreo cookies (which cost $2 per package) and salt and vinegar…
A: Income=$48Price of Oreo cookies=P1=$2 per packagePrice of Salt and vinegar chips=P2=$3 per bagNow,…
Q: (a) Suppose Kreese's preferences are monotone (more is better) and that he is willing to give up one…
A: Introduction: In economics, utility refers to the complete satisfaction obtained through the…
Q: 1. Interpret the figure below that illustrates Sally's budget line and her preferences. a. At what…
A: Budget line represent all the combination of goods that can be purchased with given amount of…
Q: What is an indifference curve? Also elaborate its different possibilities under the different…
A: The indifference curve is the curve which shows the different combination and bundle of two goods…
Q: Why is the consumer’s MRS equal to the price ratio at the optimal consumption point? Give a…
A: Answer: A consumer maximizes his/her utility where the indifference curve is tangent to the budget…
Q: Assume that an individual has convex indifference curves (i.e. diminishing MRS). Suppose the…
A: An indifference curve illustrates the combinations of two goods that will give the same amount of…
Q: (a) Explain why point A is preferred over point B in the diagram below: Clothing Budget line…
A: With respect to two commodities, an indifference curve is a graph that depicts the combinations of…
Q: Under the ordinal theory, a consumer is expected to rank his or her scale of preference from the…
A: “Since lt is a multiple question, we will solve the first question. If you want any specific…
Q: A consumer decides not to buy a VCR when her income is $20,000. However, when her income rises to…
A:
Q: uppose that the price of good A and Good B are birr 3and birr 2 respectively suppose aconsumer is…
A: At the optimal level of consumer's satisfaction, the following two conditions must be met: a)…
Q: 2. a. Can a set of indifference curves be upward sloping? If so, what would that tell you about the…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 3. Juliette spends $48 each month on Oreo cookies (which cost $2 per package) and salt and vinegar…
A:
Q: Given the Indifference Curve, answer the ff: 1. The following points all yield the same happiness,…
A: This indifference curve depicts a combination of two items that is quantity of A and Quantity of B.
Q: Pls help with below homework. A consumer’s utility function is in the form of: U(X,Z) = F(X,Z)…
A: the indifference curve (IC) explains the relationship between two goods (in this case X and Z) that…
Q: In the diagram, assùme the consumer whose indifference curves are shown is currently in consumer…
A: The indifference curve is the graphical representation of the different combination of two goods…
Q: he following graphs show two indifference curves, a brown one and a blue one, where blue is more…
A: Monotonic preferences exist when a consumer's preferences are such that increasing his consumption…
Q: a) In words describe what the Marginal Rate of Substitution represents. b) Explain why two…
A: a) The marginal rate of substitution is referred to the amount of a particular good that a consumer…
Q: Considering the two goods case ( good X and good Y ) , is it possible for two indifference curves to…
A: Indifference curve is the curve showing the different levels of the consumption bundles which shows…
Q: Suppose an individual has the following utility function: U(x,y)=−4(x−5.5)^2 −2(y−3.5)^2 Further…
A: Utility: It refers to the maximum satisfaction which a consumer gets from the purchase of the goods…
Q: X a e b d
A: Here, the given figure provide information about the budget line and three indifference curves.
Q: 3.7 (0) Joan likes chocolate cake and ice cream, but after 10 slices of cake, she gets tired of…
A: Answer - Part (0) Answer -
Q: The figure at right shows Bobby's indifference map for juice and snacks. Also shown are three budget…
A: A budget constraint shows the combination of two goods that can be purchased by an individual with…
Q: 2. Suppose John's utility function is UX,Y) = 4/XY , where X is consumption of beer and Y is…
A:
Q: What preference does this utility function represent? (Hint: the utility function is not linea but…
A: Utility is a term in economic matters that alludes to the all out fulfillment got from consuming a…
Q: above utility functions satisty the declining MRS property? (Hint Graph some indifference curves and…
A: U(X, Y) = X + XYMRS = MUxMUy = 1+YX Hence, this satisfies declining MRS property V(X, Y) = 1X+…
Q: 3. Juliette spends $48 each month on Oreo cookies (which cost $2 per package) and salt and vinegar…
A:
Q: anuel is a consuming his optimal bundle, and is currently willing to give up 5 apples to obtain 1…
A: Manuel willing to give 5 apples to obtain 1 orange Jorge marginal utility of oranges is twice…
Q: Refer to Figure 3 below. The consumer chooses A on budget line Il and chooses B on budget line 12.…
A: Given a consumer's money income and the price of two commodities i.e. food and clothing, the budget…
Pls help with below homework.
With the help of indifference curve diagram (gift goods on one axis and all other goods on the other) to illustrate that one is better off receiving cash grant than a gift
Step by step
Solved in 2 steps with 1 images
- Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to confirm the choice of phone minutes and round trips that maximize Jeremys utility.In ordinal Utility approach, let a consumer's utility function is given by TU X³Y. If price of X is 2 birr and price of Y is 3 birr and if budget of the consumer is 100 birr for consumption of X and Y. then what are the utility maximization X and Y?Explain in detail what are indifference curve and what do they measure. What are the three characteristics of indifference curves, MRS, slope of IC curve and the budget line? What is budget line and what does it represent. Explain with formula and graph what is the point of consumer’s equilibrium, conditions of the equilibrium, and how does this equilibrium shift in (a) Income effect; (b) Price effect and (c) substitution effect and explain the pivot under price effect and under substitution effect. What is PCC?
- If we have money, we buy goods and services to satisfy our needs. In economics, thesatisfaction that we get from the consumption of goods and services is called utility. Usea utility graph to explain what happen to the utility when you keep on increasing thenumber of units consumed. Also explain what happens to the utility when you keep onincreasing the number of units consumed. Also explain what happens to the additionalutility (i.e. additional satisfaction) when you increase your consumption by one unitLaw of Diminishing Marginal UtilityIndicate whether each of the following statements is true or false. Explain why.A.The law of diminishing marginal utility states that as an individual increases consumption of a given product within a set period of time, the utility gained from consumption eventually declines.B.Marginal utility measures the added satisfaction derived from a one-unit increase in consumption, holding consumption of other goods and services constant.C.When goods are relatively scarce, the law of diminishing marginal utility means that the added value of another unit of goods will be small in relation to the added value of another unit of services.D.The law of diminishing marginal utility gives rise to a downward-sloping demand curve for all goods and services.Explain consumer equilibrium with the help of indifference curve. Also discuss the practical importance of law of diminishing and law of equi-marginal utility?
- Explain the cardinal and ordinal utility approach ? P Type here to searcha. A consumer is willing to trade 3 units of x for 1 unitof y when she has 6 units of x and 5 units of y. She isalso willing to trade in 6 units of x for 2 units of y whenshe has 12 units of x and 3 units of y. She is indifferentbetween bundle (6, 5) and bundle (12, 3). What is theutility function for goods x and y? Hint: What is theshape of the indifference curve?b. A consumer is willing to trade 4 units of x for 1 unitof y when she is consuming bundle (8, 1). She is alsowilling to trade in 1 unit of x for 2 units of y when sheis consuming bundle (4, 4). She is indifferent betweenthese two bundles. Assuming that the utility function isCobb–Douglas of the form U (x, y) = xα y β, where α andβ are positive constants, what is the utility function forthis consumer?c. Was there a redundancy of information in part (b)? Ifyes, how much is the minimum amount of informationrequired in that question to derive the utility function?What is consumer's equilibrium to cardinal approach?
- can explain this question? tq A consumer decides not to buy a VCR when her income is $20,000. However, when her income rises to $30,000, she decides to buy one. In a single diagram, draw the budget lines and indifference curves to illustrate this situation (assume the VCR costs $300 in both time periods). Be sure to label your diagram completely.5. Assume that a consumer has two goods to consume: medical care services (M) and all other goods (X). She has monthly income of $4500. A. Assume that the price of medical care services is $500 per unit and price of other goods is $100 per unit. Plot the budget constraint of this consumer. Remember to label the origin, axis, and intercepts on your graph. B. Plot how the budget constraint would change when the price of other goods increases to $150 per unit. How did the relative price change? Briefly explain. C. Did the consumer better off or worse off after the change in price? Please explain. (Hint: you can use concepts of income effects and substitution effects to answer this question). D. From your own experience, how did your budget constraints most recently change? Was it due to the COVID pandemic?5. Explain how consumer equilibrium is reached using marginal utility analysis.