Explain consumer equilibrium with the help of indifference curve. Also discuss the practical importance of law of diminishing and law of equi-marginal utility?

Q: You are choosing between two goods, X and Y, and your MU from each is shown in the table below.…

A: Given  Units of x MUx unit of y MUy 1 10 1 8 2 8 2 7 3 6 3 6 4 4 4 5 5 3 5 4 6 2 6 3…

Q: Fill in the marginal utilities for the table. Marginal utility falls by when the number of movie…

A: The utility gained from consuming an additional unit is referred to as marginal utility. Total…

Q: Law of equi marginal utility is an important law of cardinal utility analysis. Explain this law with…

A: Although utility is a subjective concept and varies from one person to another, the theory of…

Q: Q2. You drink only Coffee or Orange juice Price of Coffee Marginal Utility of Coffee (for (dollars…

A: Part a) MU per dollar for coffee = MU of coffee / price of coffee = 60/3= 20.

Q: Question one: Azza has an income of 52 Rial Omani (R.O) and the price of goods X, Y, are R.O 8, and…

A: Marginal utility is the added satisfaction a consumer gets from having one more unit of a good or…

Q: 3. Apoorva spends her entire income on ("good") goods X and Y, which she views as neither perfect…

A:

Q: If the price of Pizzas is $10 per pizza, and Rachel is currently examining purchasing 7 pizzas, she…

A: Quantity of 8th Pizza TU MU 1 18 - 2 34 16 3 48 14 4 60 12 5 70 10 6 78 8 7 84 6 8…

Q: Total utility is maximixed in the consumption of two goods by equating the  a.Prices of both goods…

A: Meaning of Utility Function: The term utility function refers to the total utility for a consumer…

Q: Complete the following table and answer the questions:   Units consumed Total utility…

A: An individual usually decides his demand based on the satisfaction that he derives from the…

Q: Explain the consumer’s Preferences and the Indifference Curv

A: Economics: It is the study of the manner of organizing money, business and industry.

Q: QUESTION 13 For normal preferences, what happens to the MRSXY as an individual consumes more of good…

A: The economic law of diminishing marginal utility asserts that as the units demanded of a commodity…

Q: Jamini has $800 of income to spend on goods X and Y. The prices of goods X and Y are $200 and $10,…

A: Wants satisfying power of commodity called utility , and when anyone get their utility equals to…

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: Economics 1. Imagine you have $1000 of income to spend on two goods, x1 and x2. ASSUME BOTH AR…

A: Income = 1000 Price of x2 = 20 Price of x1 in case 1 Px1 = 40 case 2  = 20 case 3 = 10

Q: At any point on an indifference curve, the slope of the curve measuresthe consumer'sa. income.b.…

A: The indifference curve shows the combination of two goods and services which gives the same constant…

Q: Define Utility in your own words.What does it mean to have diminishing marginal utility?How do you…

A: A person who either orders or use purchased services or goods being for uses including personal,…

Q: Suppose that Kat likes arrows and food. Kat's potential indifference curves for these two goods are…

A: An indifference curve is used to explain the law of diminishing marginal utility that applies to…

Q: Troy has preferences for laptops (L), and drones (D). Laptops costs $750 a unit and drones costs…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: A consumer has the following utility function: Ulx, y) = xy -y: *21 where x and y represents the…

A: Substitution effect refers to substituting the consumption of the consumer from one good to another…

Q: Given the following information:   Quantity (units) TU1 TU2 0 0 0 1 40 20 2 60 36 3 76 45 4…

A: Budget line is a locus of all those combinations of two goods which a consumer can afford. p1*q1 +…

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: You drink only Coffee or Orange juice Price of Coffee (dollars per cup) Marginal Utility of…

A: As per guidelines, we will answer the first three subpart questions. a. Marginal utility per dollar…

Q: Pick any random tangible good that gives you happiness or sense of contentment when you utilise it.…

A: In general, utility refers to the amount of joy or satisfaction (or alleviated suffering) that an…

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: With the help of indifference curve diagram (gift goods on one axis and all other goods on the…

A: Indifference curve is based on the ordinal utility analysis of Hicks and Allen. It represents the…

Q: Illustrate and explain how consumer equilibrium is achieved using the indifference curve? Discuss…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Explain in detail what are indifference curve and what do they measure. What are the three…

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first three…

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: The tables below provide Sam's total utility for coffee and tea. Instructions: Enter your answers as…

A: Total utility is total satisfaction derived from consuming a good. Marginal utility is change in…

Q: To build a consumer budget line. 2. To build the indifference curve. To determine the Marginal Rate…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Draw hypothetical consumer’s indifference curves for Soft-drink and Pizza. Describe and explain four…

A: IC(indifference curve) shows the locus of various points (combination of different quantities of 2…

Q: 15. Answer the following questions based on the table. a) Complete the given table. b) Draw the…

A: A consumer always consumes that much amount of goods that gives the maximum amount of total utility…

Q: Using Figure explain why the point of tangency of the budget line with an indifference curve is the…

A: Budget line represents all possible combination of two goods on which a consumer spends all his…

Q: The following table reflects the utility one receives from consuming a given product.      Units…

A: Total Utility refers to the total satifaction derived by a consumer from the consumption of a good…

Q: Define the law of diminishing marginal utility. Given an individual’s income and the prices of two…

A: The optimal amount of SG and H using Equi marginal principal can be determined as follows- The…

Q: The figure below shows two of Josie's indifference curves between peaches and cream, as well as her…

A: The graph shows two indifference curves and one budget line. The utility maximization condition of…

Q: utility.

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Donald derives utility from only two goods, carrots (X) and donuts (Y). His utility 0.1 0.9 function…

A: Indifference curve represents all the combination of goods that can be consumed with given amount of…

Q: Kim spends all her weekly income of R200 on two goods, X and Y. The prices of the two goods are R5…

A: A budget constraint refers to all the different combinations of goods and services that a consumer…

Q: What information is contained in an indifference curve? Why are such curves: (6) Downward sloping…

A: An indifference curve is a graphical presentation of various combinations of two goods where a…

Q: The following figure shows a portion of a consumer's indifference map and budget lines. The price of…

A: Initial consumption bundle is A (x=300,y=300) After the price changes, the consumption bundle is…

Q: Question attahed in image

A: The indifference curve would be the locus of all points that shows different combinations of the…

Q: 3. Apoorva spends her entire income on (*good") goods X and Y, which she views as neither perfect…

A: Disclaimer: Multiple questions => Answer to the first question provided.