If point XYZ falls on different level of indifference curve, what will happen? a. XYZ will have same quantity combination b. satisfaction is the same c. no satisfaction is derived because it doesn't have a cost d. point z will equal point x and y in yielding satisfaction
Q: 5.3 What is the slope (value) of Mrs. Bain budget line? 5.4 In theory, what is the slope (value) of…
A: Indifference curve refers to the graphical combination of all possible combination of two goods that…
Q: Question 2: Budget constraint and Indifference curve Question Assume the prices of product X and Y…
A: Budget line(BL) is a downward-sloping line showing a tradeoff between the two goods. A budget line…
Q: 1 Giving a list of arguments, explain why indifference curves cannot intersect with each other.
A: Hi! thanks for the question but as per the guidelines, we can answer only one question at one time.…
Q: 12. A consumer likes two goods, x and y, and has the following utility function, U= 2√√xy. What is…
A: Slope of IC is the MRS where we can find the MRS using the marginal utilities of goods.
Q: Question 2: Budget constraint and Indifference curve Question Assume the prices of product X and Y…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Quantity of Cheese Cakes Total Utility (TU) Marginal Utility (MU) (slices per day) 1 20 36 3 48 4 55…
A: Marginal utility is nothing but the additional utility which is derived from consumption of an…
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: 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: Consider the utility function U=10lnx+y. If the price of x is 2 and the price of y is 1, how much…
A: Here we have a quasi linear function:- U=10lnx+y Here we solve for Marshallian demand or ordinary…
Q: 56. When Marginal Utility is positive, Total Utility A. O Increases B. O Decreases C. O Remains…
A: To find: What happens to total utility when marginal utilities will be positive.
Q: arginal utitities 3 Y and 3 X 3X. imagine that he has a budget of $288 and prices are PX = $2 and…
A: Given Utility function U=3XY M=$288 Px=$2 Py=$3
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: If point XYZ falls on different level pf indifference curve, what wil happen? a. point x maybe…
A: Indifference curve shows the two goods combination which provide to consumers same satisfaction…
Q: . Explain, using an indifference curve and a budget line, the concept of consumer equilibrium.
A: To show the mix of two merchandise X and Y, that the consumer purchases to be in equilibrium, we…
Q: MUA =z = 30 - 4x MUB = z = 20 - 5y, where z is marginal utility per dollar measured in utils, x is…
A: Given that, MUA = z = 30-4x MUB = z=20-5y Consumer income =$7 Budget constraints ; x+y = 7 At…
Q: Marginal utility for a unit will be positive and decreasing if Total utility is increasing in a…
A: In the field of microeconomics, utility is defined as the satisfaction the consumer is able to…
Q: M1
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: 3. Assuming a price of X (Px) and a price of Y (Py) are $ 1 each, the individual's income is $ 8 per…
A: The law of marginal utility states that as we consume more and more of a particular commodity, the…
Q: 21. Which of the following is NOT the goal of the consumer? a. maximize utility b. maximize…
A: Consumer going through is the all out cash spent on conclusive merchandise and enterprises by people…
Q: Suppose that a consumer’s utility function for two goods (X and Y) is U(X,Y) = 10X^0.5 + 2Y , with…
A: Utility Function : 10x0.5 + 2Y Px = 5 (Price of x ) Py 10 (Price of y ) Income = m = 275…
Q: Derive the Utility Function to find the equation for the indifference curve. U(x, y) = (.6T.5 +…
A: In order to find the equation for the indifference curve from the utility function, we simply…
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: Explain and give example 1. Satisfaction of wants VS Fullfilment of needs
A: Satisfaction of wants means to satisfy a want,for example buy a car.
Q: a) What is the MRS of a well behaved indifference curve? b) If price 2 is increasing but less than…
A: What is the MRS of a well behaved indifference curve What is an indifference curve's MRS?The MRS…
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: 8. Ann can finish a project either this week or next week. The delayed rewards are 10 in either…
A: The correct answer is option C .i.e. Only if β = 1.In the question we are given that, the delayed…
Q: The value in Y axis has changed from 13.54 to 11.78 and the value in X axis has changed from 9.96 to…
A: Indifference curve shows combinations of two goods that give same level of utility. Marginal rate of…
Q: Assume that an individual has convex indifference curves (i.e. diminishing MRS). Suppose the…
A: An indifference curve illustrates the combinations of two goods that will give the same amount of…
Q: 5.3 What is the slope (value) of Mrs. Bain budget line? 5.4 In theory, what is the slope (value) of…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
Q: What would the indifference curve for a utility function of u(c,l)=log(c)-l look like if MRS =…
A: Indifference curve is tue two goods possible combination which give same satisfaction level to the…
Q: For any two goods (things you would like more of): Select one or more: Indifference curves are…
A: An indifference curve is a graph that connects points on a graph that represent various quantities…
Q: Given the Indifference Curve, answer the ff: 1. The following points all yield the same happiness,…
A: This indifference curve depicts a combination of two items that is quantity of A and Quantity of B.
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: Using Figure 4 , explain why the point of tangency of the budget line with an indifference curve is…
A: A budget line (m) shows all possible combinations of two goods that can be bought with provided…
Q: Demand Curve when shifted to guhe left becomes a. moves upward and downward sloped b. negatively…
A: Explanation: The demand curve is downward sloping, indicating the negative relationship between the…
Q: 5.3 What is the slope (value) of Mrs. Bain budget line? 5.4 In theory, what is the slope (value) of…
A: Marginal rate of substitution (MRS): - it is the rate that shows the number of units of one good…
Q: 3. You have improved your marks this year and your parents are impressed and wish to reward you for…
A: Given utility function = 20XY Utility level to be achieved = 360,000 PX = 50 PY = 10 We have to…
Q: 10) Suppose that the utility function of an individual can be described as U(X,Y) = 4X + 2Y. For…
A: Marginal rate of substitution refers to the slope of an indifference curve. Indifference curve shows…
Q: Suppose an individual has the following utility function: U(x,y)=−4(x−5.5)^2 −2(y−3.5)^2 Further…
A: Utility: It refers to the maximum satisfaction which a consumer gets from the purchase of the goods…
Q: A. The table below gives the utility from pens and pencils. Total utility from pens Quantity of pens…
A: Total Utility: Utility gained by consuming total units of output. Marginal utility: When there is…
Q: Problems 7 1 1 1 1. Marco's utility function is given by U= X®Y8. MUx 8 =xY, MUy =xóY. Given Marco's…
A: 1.a) It is given that A consumer will always prefer that good whose marginal utility(MU) of the…
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: In the theory of consumer behavior, certain axioms about the nature of preferences imply that…
A: Note- Since you have asked multiple question, we will solve the first question for you. If you want…
Q: 4. One of the following is not true about the characteristics of well-behaved indifference curves:…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
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: Utils, 8- 7- 6+ 5- TU 2 3 Which of the following characteristics of the total utility function is…
A: Total Utility is the overall amount of satisfaction receive by consumption of all the units of…
Q: U = xy and y = x(1+y) Are points (1,9) and (5,1) on the same indifference curve？
A: Utility curve shows the different possible combination of two goods that gives same level of…
Step by step
Solved in 2 steps
- Would you expect total utility to rise or fall with additional consumption of a good? Why?If point XYZ falls on different level pf indifference curve, what wil happen? a. point x maybe higher that point y or vice versa and well as Z b. the will have same quantity combination c. it will cost so much d. the will have different level of satisfaction If point XYZ falls on different level of indifference curve, what will happen? a. XYZ will have same quantity combination b. satisfaction is the same c. no satisfaction is derived because it doesn't have a cost d. point z will equal point x and y in yielding satisfaction More than zero but less than one is what kind of price elasticty a. relatively elastic b. relatively inelastic c. perfectly elastic d. perfectly inelasticNo written by hand solution I mainly need the indifference curves drawn please. Julian’s utility function is U(x, y) = (x + 2y)^2 . In every graph for this question, set y in the vertical axis and x in the horizontal axis. (a) Obtain the marginal rate of substitution. Obtain the equation of the indifference curves for U = 16 and U = 36 (solving for y as a function of x). Draw these indifference curves.
- Eren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Suppose that the Department of Welfare wants to know how much should begiven to Eren to offset his change un utility due to the price increase of an expensivemeal. Calculate the compensative variation (CV).A5. What would the indifference curve for a utility function of u(c,l)=log(c)-l look like if MRS = -MUl/MUc?Eren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Calculate for the equivalent variation (EV) for the price change.
- i. Write down the Lagrangian form and solve the utility maximization problem. ii. Assume that the income increases from 100 to $101. What is the increase in the optimal value of u(x,y)?Burt from Workouts 4.3hasu = (x + 2)(y + 10),m =110,pX= 20, pY= 5. Next month the prices will be pX= 5, pY= 5. Provide a labelled Indifference Curve and Budget Line Diagram to illustrate and quantify her Hicksian CV and EV for this price change as bundles A, B, C, and D. Compute and show all intercepts. Her CV = __________. Her EV = __________Wherein:TU = Total Utilityf= is a function ofMU = Marginal UtilityO = units of consumptionA= infinitesimal change EMV= Expected Monetary Value
- Demand Curve when shifted to guhe left becomes a. moves upward and downward sloped b. negatively sloped c. at equilibrium d. positively sloped In an indifference curve concept if if point x is below the indifference curve, how is point X described? a. cost was achieved b. not minimum c. not maximum d. cost was not achieved In an indifference curve concept if if point xyz falls in a particular Indifference curve, how is point X described? a. z may have lesser satisfaction b. Y may have higher satisfaction c. there is satisfaction yielded d. xyz are tangent with each otherEren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Calculate the change in consumer surplus from consuming the expensivemeals considering the price change (Hint: you need to compare his optimalconsumption bundle before and after the price change to get the change in CS).please only do: if you can teach explain each partc: what does it mean? can you show graphs: For these to be optimal choices with such preferences, the indifference curve through a must lie entirely on or above the budget line associated with (p, w), and simi- larly for r' for the budget line associated with (p', w'). how do you know this:Because each of these bundles lies below the other budget line, this implies that the indifference curves must cross, which is impossible. can you show graphs: note that (3,1) is a conver combination of x and x', so for conver preferences must be weakly preferred to x (the less preferred bundle between a and a'). But then the bundle (3,5/3) must be strictly preferred z, contradicting that is optimal given the initial budget set
