Answered: Consider the following indifference…

Business

Economics

Consider the following indifference curves. UI U3 U4 U2 A tangency solution is never possible in the case(s) of:

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

ChapterE: Budget Constraint And Indifference Curve Analysis

Section: Chapter Questions

Problem 4QP

See similar textbooks

Related questions

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: Suppose that indifference curves are described by straight lines with a slope of −b. Given arbitrary…

A: Straight-line indifference curve: The straight-line indifference curve has a constant slope…

Q: Consider the following indifference curves. U1 U3 U4 U2 Which indifference curves violate the…

A: Convexity of indifference curves imply averages are preferred over extremes. It implies that…

Q: Suppose that G(x) = In(x) and H(y) = In(y). Please fill in the blanks. %3D absolute value of slope…

A: Indifference curve: An indifference curve is a graphical representation of the combination of two…

Q: (b) Examine the validity of the following statements, giving reasons: (i) If a person consumes two…

A: When a person is consuming two commodities and both of the commodities are undesirable, it means…

Q: Is the indifference curve of U(x1,x2)=max(x1,x2) considered to be the curve for a perfect complement…

A: The utility function for perfect complements is given by: U(x1, x2) = min (x1, x2). Suppose a…

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: For each of the following utility functions (i) derive the equations describing the indifference…

A: Note: As per the guidelines we're only entitled to answer only first three parts of the MCQ type…

Q: If the utility function of a consumer is given by U(X, Y)= VX+ 2vY. Which one of the following…

A: Indifference curve is the curve which shows the combination of two goods in which consumer gets the…

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: 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: [Indifference Curves] Consider the utility function U(C1, C2) and B 1 In(C1)BIn(C2) 1. Using a…

A: The given equation is : U=ln(C1) + Bln(C2)We know, ln(C1) + ln(C2) = ln(C1*C2)

Q: Which one of the following is incorrect about the indifference curves? All combinations in an…

A: Indifference Curve: An indifference curve represents various combinations of two commodities that…

Q: Which indifference curves violate the assumption of monotonicity? U3 only. U1 and U3. U1, U3 and U4.…

A: The assumption of monotonicity is that the indifference curve is negatively sloped. If the…

Q: A maximizing consumer with preferences u = x^(1/2)+ y^(1/2) pays pY= 4 and pX= 4 and spends 24…

A: Indifference curve: It can be defined as the possible combination of two goods that provide the same…

Q: Q12. If indifference curve is straight line downward sloping, (a) MRS is increasing (b) MRS is…

A: According to the given question An indifference curve is a curve which is actually and generally…

Q: Differentiate between isoproduct curves and indifference curves

A: The term ISO quant was used by R. frisch

Q: Using a graph, draw a set of indifference curves that are not locally non- satiated. Explain in…

A: An indifference curve refers to a graphical depiction of a combined product that offers a buyer a…

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: Indifference curves (and isoquants) have certain properties. Match the property to the assumption…

A: An indifference curve shows various combinations of two goods that give the consumer equal utility…

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: Lucy's company has just promoted her to a managerial position and given her a new office. She is…

A: An Indifference curve plots the area of the multitude of focuses showing the heaps of two products…

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: Isn't the utility function is perfect complement: min{} and the indifference curves should be…

A: A potential extension to the analysis is general equilibrium analysis or how demand and supply…

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: Depict utility function on a number line: U(x)=(x-6)^2 Indifference set around x=3 Lower contour set…

A: Utility function is defined as a function that measures the satisfaction derived by a consumer as a…

Q: Lucy's company has just promoted her to a managerial position and given her a new office. She is…

A: The indifference curve shows the points that are combinations of commodity bundles that provide the…

Q: Which of the following does NOT describe the optimal choice condition slope of budget constraint =…

A: Indifference curve: - it is the graphical representation of different combinations of two goods that…

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: Lucy's company has just promoted her to a managerial position and given her a new office. She is…

A: Utility is defined as the level of satisfaction which a consumer receives by the consumption of…

Q: Discuss five properties of indifference curves and their relevance for consumer theory

A: Indifference curves represents the utility obtained by a consumer as a combination of two goods.

Q: Henrietta's utility function is U(x1, x2)Xị + x How do Henrietta's indifference curves look? a. b.…

A: Given that, The Henrietta's utility function.

Q: Suppose that one of your friends does not care if she consumes spaghetti (S) or noodle (N). She…

A: When the price of S is greater than the price of pri9ce of N, then the person consumes only the good…

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: Consider the utility function U = 3 F C. Carefully sketch the indifference curve for utility…

A: Utility refers to the want satisfying power of a commodity. The two approaches used to measure…

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…

Q: MRS is constant along a linear indifference curve

A: An indifference curve is a curve that represents the combination of two goods that give a consumer…

Q: If the utility function is : u= q1q2. find the slope of an indifference curve. What will be its…

A: Slope of indifference curve = Marginal rate of substitution (MRS).

Q: If a consumer is indifferent between two consumption bundles: The two bundles lie outside the budget…

A: Ans 1) A consumer is a person who demands goods and services. He chooses between different variety…

Q: Indifference curve is vital in explaining the ordinal approach, yet is criticized on the various…

A: The theory of indifference curve analysis was explained by hicks and Allen. According to this theory…

Q: The indifference curve for U=min(5x,4y) will be Select an answer and submit. For keyboard…

A: As Given utility function is U=min(5x,4y)

Question

Consider the following indifference curves.
U1
U3
U4
U2
A tangency solution is never possible in the case(s) of:

U1, U3 and U4 only.
U1 and U3 only.
U1 and U4 only.
U1, U2, U3 and U4.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Prove that the utility maximization conditions as suggested by the “marginal utility framework” are consistent with the “indifference curves approach”.
It is the property of indifference curve that no two ICs can intersect each other because: a. same combination of two goods cannot give different level of satisfaction. b. of diminishing MRS. c. consumer preferences are transitive. d. MRS will not equal with MRT.
Consider the relative slopes of the indifference curves for two individuals with respect to the same two goods, xylophones (on the X-axis) and yams (on the Y-axis). The individual with the relatively steeper indifference curves: a) is indifferent between yams and xylophones. b)has a weaker preference for yams. c)has a stronger preference for yams. d)has inconsistent preferences.
Find the indifference curves corresponding to the following utility functions at different utility levels, three by three, and the MRS
Derive utility maximisation of a consumer using the tool of indifference curve analysis
Determine which, if any, of Properties 4–1 through 4–4 are violated by the indifference curves shown in the following diagram
Determine the optimum demand for goods 1 and 2 for consumers who have the utility function u(x)=x1x2. Show that the solution will be the same whether using the slope approach (i.e the slope of the indifference curve is the same as the slope of the budget line) or using the Lagrange approach.
Which of the FF. statements is correct regarding the preference of the consumers when the income of the consumer can only be spent between apples and oranges? Assume that apples are written on the vertical axis while oranges are written on the horizontal axis A. when the consumer has few oranges, he is willing to trade more apple to get another orange B. when the consumer has so many oranges already, he will only exchange less apples for an orange C. the declining slope of the indifference curve shows the marginal value of oranges is declining D. all are correct E. none is correct
Suppose the consumer solves the following UMP: max (x1)^2 + (x2)^2 , s.t. p1x1 + p2x2 ≤ w where p1,p2 > 0. a) Plot the indifference curves b) Find the Marshallian demand functions. Show graphically the utility maximizing choices.
Ann's utility function is U = q1q2/(q1 + q2). Solve for her optimal values of q1 and q2 as a function of p1, p2 and Y.
An indifference curve is also known as___________.
The indifference curve for U=min(5x,4y) will be Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a: vertical b: horizontal c: downward sloping straight line d: L- shaped. e: None of the above