Compare the following two pairs of goods: • Coke and Pepsi • Racket and Shuttle a) In which case are the two goods complements? In which case are they substitutes? b) In which case do you expect the indifference curves to be straight? In which case do you expect the indifference curves to be very bowed? c) In which case will the consumer respond more to a change in the relative price of the two goods?

Q: It is known that the indifference curve is convex. What does this tell you about the relationship…

A: The indifference curve refers to the graphical representation of different combinations of two goods…

Q: On what portion of the demand function does total revenue rise as price rises? The price of tea…

A: 1. Law of demand suggests that other things remain constant with a rise in the price of a commodity…

Q: Vera considered Chips and Salsa perfect complements. She had $24 to spend on chips and salsa and she…

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Q: What is the difference between good x as a function of price and income and good x as a function of…

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Q: Eggplant and Broccoli are perfect substitutes for Josh, same marginal utility from a single eggplant…

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Q: Caroline spends her money on movie tickets and concert tickets. Last summer, the price of concert…

A: Caroline spends her money on movie tickets and concert tickets. Last summer. the price of concert…

Q: Compare the following two pairs of goods: • DVDS and DVD players • Crest toothpaste and Colgate…

A: The two goods are complements :  DVDs and DVD players Reason : They complete the demand for each…

Q: Suppose there are two goods, that the prices are given, and that there is a consumer worth a certain…

A: Normal good – a good in which an increase in income raises its sales.

Q: Assume there are two goods, prices are indicated, and there is a consumer with a specified income.…

A: Price effect is the effect of the price change on the quantity demanded of a product. The price…

Q: Q.4. Compare the following two pairs of goods: • Coke and Pepsi • Racket and Shuttle a) In which…

A: The budget constraint of the consumer shows all the different combinations of two goods a consumer…

Q: Suppose that goods X and Y are perfect substitutes and the consumer's utility function is given by…

A: Indifference curve shows the combination of two goods that gives the same level of utility to the…

Q: With the help of a graph, explain how the decrease in the income affect the consumer's choice for…

A: The demand for goods, and services comes from the buyers, or consumers of those goods, and services.…

Q: Consider an individual, Maya, with the following preferences over the goods X and Y : u(x, y) = 2x2…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Jerome consumes only two goods, eggs and beans. His preferences are complete, monotonic, and convex.…

A: To find : Which will be correct choice.

Q: t is known that the indifference curve is convex.

A: GIVEN   It is known that the indifference curve is convex. What does this tell you about the…

Q: Consider a user maximizing their utility from two goods. If income were to double, and prices were…

A: A budget line shows various combinations of two goods a consumer can purchase by spending all income…

Q: In the diagram on the right the consumer's original budget line is L, and the consumer buys the…

A: In economics, the term substitution effect refers to a situation in which sales of a good will…

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: Tammy spends her money on lemonade and iced tea. If the price of lemonade falls, it is as though her…

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Q: Compare the following two pairs of goods and answer the following questions about complements,…

A:

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: Suppose U = min(X, Y) and the price of X is 1, the price of Y is 1 and income is $12. If the price…

A:

Q: Compare the following two pairs of goods:• Coke and Pepsi• Skis and ski bindingsa. In which case are…

A: Substitute goods are defined as when change in price of one good leads to increase the demand of…

Q: Joann divides her consumption between books and games. Both books and games are normal goods for…

A: The income effect refers to the change in real income due to change in the price of a good. In the…

Q: Adam consumes no goods other than mandarins (M) and bananas (B). He considers 2 bananas to be…

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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: Explain what is meant by the Income and Substitution Effects? With the help of standard Indifference…

A: The interaction between the income and substitution effects will determine how the quantity required…

Q: Michael and Kelly consume food and clothing. In particular, Michael currently consumes 23 units of…

A: Indifference curves are heuristic instruments that are utilized in modern microeconomics to…

Q: Breno has a perfect substitute indifference curve with MRS = 5 between Coke and Pepsi. Suppose MRS >…

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

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Q: Jimmy can consume goods X and Y. The graph above represents one of his indifference curves (IC). All…

A: Answer: (1). Correct option: option A (9x=4y)

Q: The utility function is x+min(6.y). Income is 12, price of good x is 3. Price of good y decreased…

A: SUBSTITUTION EFFECTS- It means the change in the number of goods with respect to a change in the…

Q: Draw a budget line with good X on the x-axis and Good Y on the Y axis. Graphically illustrate the…

A: Price effect is basically a term that is used to describe the change in the demand preference of a…

Q: gopal is a rational consumer and consumes two goods x and y. is a cardinal measure of utility or…

A: A combination of two things that deliver the same amount of enjoyment to the consumer is depicted by…

Q: Gopal is a rational consumer and consumes two goods X and Y. Is a cardinal measure of utility or…

A: Indifference curve shows the various combinations of two commodities that provides the same level of…

Q: John has a utility function for goods x1 and x2 which is represented by u(x1,x2)=x10.2x20.8. Assume…

A: MU1 = u/x1 = 0.2 x (x2 / x1)0.8 MU2 = u/x2 = 0.8 x (x1 / x2)0.2 MRS = MU1 / MU2 = (0.2 / 0.8) x (x2…

Q: You consume only soda and pizza. One day, the price of soda goes up, the price of pizza goes down,…

A: The curve that depicts various quantities of goods being demanded by individuals at different price…

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

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Q: Maria consumes oranges and bananas. Both are normal goods to her. Which effect does a falling price…

A: The price effect can be broken down into income effect and substitution effect.

Q: Consider two normal goods: pepsi and pizza. if the price of pepsi decreases then the consumption of…

A:

Q: Consider that Pepsi (P) and Coke (C) are perfect substitutes. Draw the graph of an indifference map…

A: An indifference curve (IC) shows combination of two goods (substitutes or complements) that give a…

Q: Suppose a consumer spends all of their money on good X and good Z. When the price of good Z…

A: In a market, change in price of a good have two types of effect that are substitution and income…

Q: On an indifference map, quantity of apples is measured along the Y axis and of oranges on the X…

A: The optimal consumption bundle is when MRS is equal to the slope of the budget line.

Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.