Question
Asked Oct 21, 2019
25 views

If the price of one of the products is associated with indifference curves increase, all else the same, what is the result?

a) the individual is able to get a lower level of utility

b) the individual is able to get to about the same level of utility

c) the individual is able to get to a higher level of utility

d) prices will be lower

check_circle

Expert Answer

Step 1

Answer - If the price of one of the products is associated with the indifference curves increase, all else the same, than -

a) the individual is able to get lower level of utility - Indifference curve is locus of the points showing different points showing different combinations of two goods providing equal utility.So, with if price of one good of the products is associated with indifference curves increase than utility will affect on positive way and utility will not get lower.

b) the individual is able to get to about the same level of utility - With the price of one of the products is associated with indifference curves increase than this will effect the consumer positively.Because the indifference shows the satisfaction of the consumer with different combination of goods. So, it will increase the level of the utility.

c) the individual is able to get a higher level of utility - If the price of one of the products is associated with indifference curves increase than individual is able to get higher level of utility because as indifference curve shifts upward than the consumer will get higher level of utility.

Step 2

d ) prices will be lower - The price will not be affected if price of one of the products is associa...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.

Related Economics Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Using the aggregate demand and aggregate supply model, explain the effects of the following on price...

A: Each of the given figure (1, 2, and 3), point ‘A’ shows the initial equilibrium where the aggregate ...

question_answer

Q: A nation can  produce at a point outside its  PPF?

A: No, a nation cannot produce at a point outside the production possibility frontier (PPF).

question_answer

Q: Solve the cake and pie unit income of $23 is spent

A: The table for cake is completed below: Price of cake is $5

question_answer

Q: Saved Help Save&Exit Submit Quantity Supplied Quantity Price Demanded $6 300 $1 10 250 $2 50 180 $3 ...

A: If there is no tax, the market will sell the product at the equilibrium price.

question_answer

Q: Examples of tradeoffs that have both monetary and non monetary cost

A: In simple terms, trade-off is giving up one thing to get the other thing. Due to the scarcity of res...

question_answer

Q: i need help with question 5

A: (a) Jose income is $10 and the price of housing is $2, thus Jose can purchase 5 housings. He cannot ...

question_answer

Q: Refer to the figure. What is their total profit or loss? –$400,000 $360,000 $840,000 –$200,000

A: The profit is the excess revenue made by the firm after deducting the total cost from the total reve...

question_answer

Q: Free rider problem: a. Please thoroughly and completely explain the free-rider problem. b. Please ...

A: The free-rider problem refers to the situation where people enjoy the goods and services without pay...

question_answer

Q: given the following informationon quantity consumed of cheese and total utility for Carl answer the ...

A: 1. Total Utility (TU) refers to the total utility received from the consumption ofa good or service....