Given the indifference map and the budget line of the consumer, show with a diagram how does the consumer maximise utility. If A consumer has a MRS = 4/5 and price ratio =3/4, is he maximising his satisfaction? If not, suggest what he should do.

Q: Explain the consumer equilibrium point by using Indifference Curve Approach and the Budget Line.…

A: Budget line shows the constraint of income ie beyond which the consumer cannot spend.  Indifference…

Q: Fill in the missing words/ phrases: An indifference curve shows all possible combinations of _(3.1)_…

A: Consumer theory studies the behavior of consumers, how they spend their income on which goods.…

Q: The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget…

A: The utility is the amount of satisfaction received from the consumption of a good or service.

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: What information is contained in an indifference curve? Why are such curves Downward sloping

A: Information contained in the indifference curve is: It represents all those combinations of goods…

Q: Millet (a type of grain cereal eaten my many in the developing world) and rice are normal goods…

A: The demand function is a relationship between the customer's demand for a product and its cost when…

Q: Provide short answer for the following? Diminishing marginal utility.         2. Indifference…

A: 1.Diminishing marginal utility. it implies that keeping other things unchanged as we consume more…

Q: Why Indifference curve of a rational consumer cannot be parallel to x-axis and y-axis?

A: Indifference curve shows the different possible combination of two goods that gives the same level…

Q: We claimed in the text that if preferences were monotonic, then a diagonal line through the origin…

A: Indifference curve refers to the graphical representation of various combinations of two goods,…

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

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

Q: Drawing indifference curves: Carl likes taking the rides at Disneyland, but dislikes standing in…

A: Production possibility frontier (PPF) shows a probable combination of two commodities produced in an…

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

A: Given information- Laptop Cost $750 Drone Cost- $2000 Total Cost- $15000

Q: The following statement is true for consumer preferences: a) The axiom of weak monotonicity implies…

A: Consumer preference: It refers to the items that a consumer wants to buy. The change in consumer…

Q: Really need some help answering these questions, it’s all one problem but I understand that it’s…

A: Solution: Consumer 1: U(x1, x2) = x1 x2

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: An indifference curve is the locus of points of combination of goods which gives equal satisfaction…

A: Consumers Equilibrium: Consumer equilibrium is the situation of maximum satisfaction. When the…

Q: What information is contained in an indifference curve? Why are such curves Convex to the origin

A: Indifference curve (IC) is an important concept in consumer theory under micro economics.

Q: If the price of one of the products is associated with indifference curves increase, all else the…

A: Answer - If the price of one of the products is associated with the indifference curves increase,…

Q: As a consumer moves along an indifference curve, then each point to the right will show higher…

A: Indifference curve is an indicative curve for any firm which shows combination providing equal…

Q: Use the Budget Line and Indifference Curve concepts to illustrate how a consumer can obtain the…

A: The curve that depicts various combinations of goods and services which could provide different…

Q: What information is contained in an indifference curve? Why are such curves (a) downward-sloping and…

A: An indifference curve(IC) is a graphical representation that shows different combinations of 2 goods…

Q: Under the ordinal theory, a consumer is expected to rank his or her scale of preference from the…

A: Since you have asked multiple questions, we will solve first question for you. In case you want some…

Q: Explain the derivation of the demand curve of a consumer using the indifference curve theory.

A: At the utility-expanding arrangement, the consumer's marginal pace of replacement (the total worth…

Q: What does revealed preference theory based on? a) Utility and demand b) Observed consumer behavior…

A: Revealed preference: Revealed preference is a theory relating to somebody's consumption patterns,…

Q: The question is: Draw the indifference curve diagrams for the utility functions listed below. Plot…

A: The indifference curve shows the different combinations of two goods that provide the same level of…

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

A: The indifference curve consists of a set of points that represents a different combination of…

Q: Which of the following statements is true? OThe budget line shows the utility associated with all…

A: The budget line shows all the affordable consumption bundles so the first statement is incorrect.…

Q: As the price of a good rise, the consumer will experience Select one: a. a southwesterly movement…

A: Indifference curve:- Indifference curve can be defined as a graph that represent different…

Q: The following statement is true for consumer preferences. a) /The axiom of weak monotonicity…

A: Consumer preference: It refers to the items that a consumer wants to buy. The change in consumer…

Q: Why is “consumer's utility is impossible to measure and quantify? Explain your answer.

A: In economics, utility refers to the entire pleasure derived from the consumption of an item or…

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

A: A indifference curve is a line showing every one of the mixes of two products which give a customer…

Q: Suppose a consumer only purchases food and clothing, and food plotted along the horizontal axis of…

A: Indifference curve: It refers to that curve which shows the combination of two different goods…

Q: Consider indifference curves for the consumption of milk and chocolates (you may assume that both…

A: Answer - Option - d Given the same amount of chocolates, consumer A is willing to swap one bar of…

Q: Which of the following statements is true? a. An indifference curve represents combinations of…

A: An indifference curve basically refers to a graphical depiction of a combination of two items that…

Q: assume that the data in the following table are an indifference curve for a consumer: what is the…

A: Indifferent curve shows the different possible combination of goods nd services that give the same…

Q: Molly loves hamburgers and soft drinks, but insists on consuming exactly one soft drink for every…

A: Molly’s preference of consuming exactly one soft drink for every two hamburgers shows that she…

Q: Q48 As a consumer moves along an indifference curve, ... a. The combination of goods will vary,…

A: An Indifference curve is a combination of two goods that gives same level of utility. One of the…

Q: 1. Let k = one plus the last digit of your student number. For example, if your student number is…

A: Given value of Utility function  in the question is following -:…

Q: Assume that the data in the following table are an indifference curve for a consumer: a. graph this…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

Q: Why does total utility increased as the consumer moves to an indifference curve farther from the…

A: The indifference curve is defined as the locus of points of the combination of two goods, which…

Q: What happens to utility when we move up and down on the indifference curve? What happens to utility…

A: An Indifference Curve(IC) is a graphical representation that combinations of two items that give the…

Q: The budget line shows: all possible combinations of two goods that yield the same level…

A: Budget lines shows the combination of expenditure's of two different goods and the given level of…

Q: 1.6) The marginal rate of substitution (MRS) can be defined as: Select one or more: a. The amount…

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

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

A: In a market, indifferent curve is an economic measure to explain the utility that an individual gain…

Q: In situation I below the utility maximizing consumer buys bundle C.     Draw an indifference…

A: a) IC is tangent BC: I at point C

Q: If the price of one of the products associated with indifference curves decreases, all else the…

A: For the aforementioned question, the correct option is C.