Explain why convex preferences means that “averages are preferred to extremes.

Q: Given the table below, draw the indifference curve and find the slope between point B and C.

A: The curve that represents different quantities of goods that help in providing the consumer with the…

Q: 1) The principle that "More is better" results in indifference curves A) not intersecting. B)…

A: An indifference curve shows a blend of two merchandise that give a buyer equivalent fulfillment and…

Q: 7. Mr Kabelo has R1000 to spend on meat and rice. The price of meat is R250 per portion while that…

A: Note: Since you have asked more than one individual questions, we are going to answer the first…

Q: Assume that Bob's utility function over beer x and pizza y is U(x,y) = 4x+12y. Which of the…

A: U(X,Y) = 4X + 12Y If pX/pY < 1/3, He will only buy Beer If pX/pY > 1/3, He will buy only…

Q: 7.A college football coach says that given any two linemen A and B, he always prefers the one who is…

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

Q: D] Question 9 Patrick's preferences can be represented by U-4X'Y, Compute the slope of his…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: 3. Consider the utility function u(x, y) = - (v41) (a) Find the equation for the marginal utility…

A: Answer-

Q: Explain why convex preferences means that “averages are preferred to extremes.”

A: The convex preferences in the economy indicate that the consumers prefer the averages rather than…

Q: 2. Why does local non-satiation of preferences imply that a consumer would always choose a bundle on…

A: Among the very ideas of microeconomics that form the basis of consumer theory, one of the most…

Q: 4. We learned that the slope of the indifference curve is called the marginal rate of substitution…

A: The answer is as follows:-

Q: 3. Indicate whether following statement is true or false and justify your answer. Concave…

A: Concave preferences result in the average of A and B being inferior to A. The inverse of convex…

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: 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: 2. What is the economic interpretation of the condition that the consumer at his optimum equates his…

A: An indifference curve refers to the combination of two goods that gives an equal satisfaction to the…

Q: 11) An individual consumes only two goods, X and Y. Which of the following expressions represents…

A: A consumer becomes indifferent when two items are combined because they both provide the same level…

Q: 9) If indifference curves are concave to the origin, then at equilibrium: A) The indifference curve…

A: Indifference curve is the locus of different combination of two goods that a consumer can consume…

Q: 11. The limit on the consumption bundles that a consumer can afford is known as: a. An indifference…

A: All the bundles of goods and services that a consumer can purchase at the given prices, given his…

Q: 1. When the price of each good as well as the consumer's budget all change by the same proportion,…

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

Q: 13. Which of the following is NOT true about indifference curves? a. They are downward sloping b.…

A: Monotonic preference means that a given consumer likes to get a greater units of a commodity because…

Q: (a) Suppose Kreese's preferences are monotone (more is better) and that he is willing to give up one…

A: Introduction: In economics, utility refers to the complete satisfaction obtained through the…

Q: 13) An indifference curve is related to which of the following? A) Choices and preferences of…

A: The theory of utility maximization says that every individual focuses on utility maximization. This…

Q: 22. When considering her budget, the highest indifference curve that a consumer can reach is the a.…

A: An indifference curve is a diagrammatic representation of all possible combination of two goods that…

Q: .Explain why convex preferences means that “averages are preferred to extremes

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

Q: - Demand theory: A. From the indifference curve/budget constraint diagram, derive the individual's…

A: Demand Theory refers to an economic principle regarding to the relationship between consumer demand…

Q: Question 7: Logan has preferences over olives (x₁) and ice creams (x₂). He prefers to eat them…

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

Q: 1) a) Given the following typical utility curves determine whether they have convex indifference…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Calculating the marginal rate of substitution (MRS). Crystal enjoys eating muffins and scones. The…

A: At point A; U(X,Y)=U(10,70)  At point B; U(X,Y)= U(15,45)  MRS=Change in good YChange in good X…

Q: 29. Which one is not a assumption of the theory of demand based on analysis of indifference curves?…

A: Indifference Curve shows the different combinations of goods that gives consumer the same level of…

Q: 4.. If the preferences are concave, will the consumer ever consume both of the goods together?

A: Meaning of Consumer Surplus: The term consumer surplus refers to the situation under which the…

Q: Question 1 1.1 Explain the principle of a diminishing marginal rate of substitution within the…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: - The theory of consumer choice examines the tradeoffs inherent in decisions made by consumers. For…

A: This question elates to the topic budget constraint, which can be explained as the limit to the…

Q: Suppose Mika has budget of $600 for only two goods, x and y. The price of a Good X is $10 and the…

A: Hi! thanks for the question but as per the guidelines, we answer up to three subparts at one time.…

Q: 4. We learned that the slope of the indifference curve is called the marginal rate of substitution…

A: A indifference curve is a graphical portrayal of a joined items that gives comparative sort of…

Q: 3.7 (0) Joan likes chocolate cake and ice cream, but after 10 slices of cake, she gets tired of…

A: Answer - Part (0) Answer -

Q: 2. (nts) Mary has the utility function u(x,y) = Inx + x². Are her preferences strongly convex?

A:

Q: C 12 Good X Good X Good X This picture shows three different indifference curve maps: A, B and C.…

A: The answer is - option 3 - B

Q: 4 Assume you are always willing to trade two Cardinal tickets for one beer, or one beer for two…

A: Formula to calculate MRS:-                                          MRS=∆Y∆X Where; ∆Y=Change in…

Q: 3) Diminishing marginal rate of substitution can be seen when indifference curves A) become flatter…

A: The curve that depicts combinations of goods that could provide the consumer with an equal level of…

Q: 10. Assume an individual's preferences are represented by the following indifference map and he has…

A: Income = 400  Price of Good1 = $20 Price of Good 2 Originally = $10 Price of Good 2 Changes to = $16…

Q: 10. which of the utility function U=5x+3y^2. the indifference curves for this utility function.  @)…

A: MRS of x for y is given by the following formula:

Q: 13. Explain Figure 3 – what would be the utility maximizing point if a person has a steeper…

A: Indifference Curve is defined as a curve which shows the combination of two goods which provide the…

Q: 8. In the following diagram, we show one of Jane's indifference curves and her budget line. a. If…

A: Given: Price of Good X=$100 Note: Due to multiple subparts being posted, the first three subparts…

Q: 4- An indifference curve connects points on a graph representing different quantities of two goods,…

A: Microeconomics studies the economic behavior of the individual units such as a buyer, a seller, a…