a. Define a budget line. b. Ilustrate and explain why indifference curves cannot intersect. c. With the use of a diagram, describe a consumer equilibrium.
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a. Define a budget line.
b. Ilustrate and explain why indifference
c. With the use of a diagram, describe a consumer equilibrium.
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- 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.Explain the consumer equilibrium point by using Indifference Curve Approach and the Budget Line. What is the necessary condition for the consumer equilibrium? Explain why the consumer is not in equilibrium if this condition does not fulfill.Graph the budget line showing all the different combinations of good ? (drawn on the horizontal axis) and good ? (drawn on the vertical axis) that can be bought given the consumer’s total income. In the graph, indicate the y-intercept and x-intercept of the budget line.
- Daniela has $100 to buy supplies for her printer. The two items that she needs are inkcartridges and printer paper. Paper costs $10 for 1000 sheets, and ink cartridges cost $5 and must bereplaced aŌer 2000 sheets of paper.a. Sketch Daniela's budget line.b. What will her indifference curves look like?c. What will she buy?Explain the consumer’s Preferences and the Indifference CurveExplain consumer equilibrium with the help of indifference curve. Also discuss the practical importance of law of diminishing and law of equi-marginal utility ? Please please answer that please early please
- Explain consumer equilibrium with the help of indifference curve. Also discuss the practical importance of law of diminishing and law of equi-marginal utility?Given the indifference map and the budget line of the consumer, show with a diagram how does the consumer maximise utility. If A consumer has a MRS = 4/5 and price ratio =3/4, is he maximising his satisfaction? If not, suggest what he should do.A consumer’s budget set for two goods (X and Y) is 500 ≥ 4X + 5Y.a. The budget set is illustrated below. What are the values of A and B? The horizontal axis is labeled Good X. The vertical axis is labeled Good Y. A line begins at a point on the vertical axis goes down to the right and ends at a point on the horizontal axis. A = B = b. Does the budget set change if the prices of both goods double and the consumer’s income also doubles? multiple choice Yes, it rotates clockwise Yes, it shifts out from the origin Yes, it shifts in toward the origin No, it does not change c. Given the equation for the budget set, what are the prices of the two goods?Good X: $ Good Y: $ What is the consumer’s income? $
- . Assume well behaved preferences for a consumer. If total price of good on Y axis goes up, ceteris paribus what would be the impact on the Budget line?Using the concept of consumer choices, draw a graphical representation of utility maximization. Your graph should be clearly labeled, include 2 or more indifference curves, a budget line, and the utility-maximizing bundle.Explain consumer equilibrium with the help of indifference curve. Also discuss the practical importance of law of diminishing and law of equi-marginal utility? Please please answer that please early please total answer this question please
