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: A consumer has $10 to spend on potato chips and sodas. The potato chips cost $2 per bag and the…

A: The budget line shows the alternate combination of two goods which is affordable and can be…

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: Mr. Abdulah enjoys Coffee (K) and Tea (T), with the utility function U (K, T) = 3K + 4T. Question: -…

A: Substitute goods are those goods that are similar and have similar features and used in place of one…

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

A: Given that,  Donald's utility function U (X, Y) = X0.1 Y0.9M = $900PX = $45PY = $90

Q: Explain consumer equilibrium with the help of indifference curve. Also discuss the practical…

A: Consumer equilibrium with the help of indifference curve The term "market equilibrium" refers to 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: Explain the consumer equilibrium point by using Indifference Curve Approach and the Budget Line.…

A: The Budget Line shows all of the possible combinations of two goods that a consumer can afford at…

Q: Alesandro purchases two goods, X and Y, and the utility gained for the last 3 unit purchased of each…

A: When an individual is consuming two products in the market, the consumer equilibrium is the…

Q: Mr. Abdulah enjoys Coffee (K) and Tea (T), with the utility function U (K, T) = 3K + 4T. Question: -…

A: This is a perfect substitute case, as tea and coffee both are substitutes for each other and can…

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: i. Analyze the utility maximizing problem with two goods as follows: Max u(x, y) subject to px + qy…

A: Our problem is :     In order to maximize U(x, y), we set up the Lagrangian function as follows:…

Q: Explain consumer equilibrium with the help of indifference curve. Also discuss the practical…

A: Consumer Equilibrium is the situation in which consumer spends his given income on one or two goods…

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

A: Donald's utility function U (X, Y) = X0.1 Y0.9 M = $900PX = $$45PY = $90

Q: Assume that there are two goods in the world: apples and bananas. Say that Natalie has a ility…

A: Hi there , as per our guidelines we are only allowed to solve 1 question with maximum 3 sub parts at…

Q: Q2. When do economists say that a consumer is in equilibrium, what factors can distort the…

A: 2)The phrase "consumer equilibrium" describes a situation in which a consumer is totally satisfied…

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: 1. Clara's utility function is a) Write an equation for Clara's indifference curve that goes through…

A: In economics, an indifference curve connects points on a graph representing different quantities of…

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

A: Marginal utility is the additional fulfillment a consumer gets from having another unit of a decent.…

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: Suppose that I = 100, px = 1 and py = 2. How much of good x and good y will Amy optimally choose?…

A: 4) utility function is given by U (X, Y) = X^0.5 + Y I = 100, Px = 1, Py = 2 So budget line would be…

Q: What do we mean by well-behaved preferences? How do the indifference curves look like for such…

A: Since the question you posted consists of multiple parts, we will answer the first three parts for…

Q: Joan has the following utility function U = 4x + 4y. a. Describe her preferences for these two…

A: Utility function : U = 4x + 4y  Utility function describes the level of satisfaction derived by a…

Q: The following figure shows the indifference curves and two budget line of student Tuna whose choices…

A: In economics, the budget line represents the various combinations of two goods that a consumer can…

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

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

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

A: Since you have posted multiple questions, but according to the answering guideline, we are supposed…

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: The figure below shows a consumer maximizing utility at two different prices (the left panel) and…

A: From the utility maximizing point A : Consumption of x = 24  Consumption of y = 48  From Graph 2 :…

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: Amy consumes x and y and her preferences can be represented by the following utility function U (x,…

A: Consumers' feelings of pleasure or contentment resulting from using a product or service are known…

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: Suppose that price of one of the two goods increases while price of the other good and the total…

A: a) The budget line will move inwardly if the price of a commodity rises whereas the price of other…

Q: Inayah is a rational consumer who consumes milk and cookies only from her monthly income of Rs.…

A: Quantity MU of  milk Rs.500 MU of Cookies Rs.300 1 400 450 2 350 200 3 200 150 4 100 100…

Q: The following figure shows the indifference curves and two budget line of student Tuna whose choices…

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

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

A: Px=2 py=1 P'x=1 I=9

Q: Matilda is downloading music and videos from an online site. She is currently buying three music…

A: Given: Quantity Price per Download MU per download Music downloads 3 $3 60…

Q: Continuing from the previous question. GoodP 12000 Good G The Budget Line/Indifference Curve graph…

A: Answering just the Budget line indifference curve graph as asked.

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

A: We know that utility Maximization is the sole objective for any consumers  with given price level…

Q: Question attahed in image

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