Indifference curves are convex to the origin because of: A) the assumption that more is preferred to less. B) transitivity of consumer preferences. C the assumption of completeness. D) the assumption of a diminishing marginal rate of substitution. E) none of the above

Q: Suppose that a consumer's indifference curve map does not obey the assumption of a diminishing MRS,…

A: An indifference curve shows all the combination of goods that gives same level of satisfaction or…

Q: Indifference curves are convex with respect to the origin. Thus they are steeper on the [Select ] v…

A: The indifference curve is the curve that exhibits equal utility to the consumer by the combination…

Q: Comparing the slope of the budget line (Opportunity Cost of Good Y) with the slope of the…

A: opportunity cost means the worth of the following most elevated esteemed elective utilization of…

Q: Consider the preferences represented by the following indifference curves. These preferences are…

A: Indifference curve: It refers to the curve that helps in the combination of showing two goods. The…

Q: Consumer attains his or her equilibrium at a point where the budget line:- (1) is below indifference…

A: The consumers in an economy are considered to be one of the most important entities in the market.…

Q: For an individual the Marginal Rate of Substitution for good X and Y is constant and equal to 1 for…

A: The budget constraint of the individual shows the different combinations of two goods an individual…

Q: suppose that a consumer has a utility function U=AX^2Y^2 Which of the following statements is false?…

A: The given infomation:The utility function can be written as follows:

Q: What happen to the marginal rate of substitution as we move along the non linear indifference

A: Indifference Curve: This is the curve that shows the various combination of two goods that gives…

Q: It is proven mathematically that indifference curves are convex due to: (a) rising marginal rates of…

A: An indifference curve is the locus of all those points which represents the different bundle of two…

Q: Which of the following statements is correct? Indifference curves cannot intersect due to the…

A: Indifference curve is a locus of different combinations of two goods that are consumed by consumers…

Q: If a consumer has chosen optimally, their Marginal Rate of Substitution is equal to the price…

A: Marginal rate of substitution (MRS) is the rate at which an individual will be willing to substitute…

Q: Explain the difference between indifference curve and iso-quant curve and similarly between budget…

A: Utility refers to the benefits that an individual derives from the consumption of goods and…

Q: An indifference curve diagram has movies on the vertical axis and sodas on the horizontal. As the…

A: Marginal rate of substitution is defined as the number of units of  commodity 'x' a consumer is…

Q: Suppose you have the following Utility function: U = U(x, y) = (x − γ) ^α (y − δ) ^β (a) Write…

A: U(x, y) = (x − γ)α (y − δ)β Total Differential : dU=[∂U/∂x]dx+[∂U/∂y]dy ∂U/∂x=α(x − γ)α-1(y − δ)β…

Q: Which one of the following is incorrect about the indifference curves? All combinations in an…

A: Indifference Curve: An indifference curve represents various combinations of two commodities that…

Q: Suppose that the following utility function is given U(X,Y) = x +Y. Which of the following is…

A: D) We have non-convex preferences since Law of diminishing Marginal Rate of Substitution fails to…

Q: Compute marginal utilities and marginal rate of substitution for each of the utility functions given…

A: The function which helps in measuring the satisfaction or welfare of a consumer as being consumption…

Q: Given the indifference curve shown to the right: Q 10- a. What is the marginal rate of substitution…

A: * answer :-  * a) Marginal Rate of Substitution = Change in good Y ( books)/ change in good X( CD)…

Q: True or false.  Assuming utility positively depends on two goods, indifference curves can be upward…

A: An indifference curve is a graph that depicts the combination of two commodities that provide equal…

Q: Indifference curves (and isoquants) have certain properties. Match the property to the assumption…

A: An indifference curve shows various combinations of two goods that give the consumer equal utility…

Q: The marginal utility for the third unit of X is 60 utils, and the marginal utility for the fourth…

A: The law of diminishing marginal utility states that  as consumer consumes more and more of a good,…

Q: Slope of Indifference curve is convex to origin because of Select one: a. MRS is vertical Ob. MRS is…

A: Indifference curve is the locus of points showing different combinations of two commodities, which…

Q: If a person's indifference curves can be represented as a straight line, the person views the goods…

A: The Indifference curve (IC) shows the various bundles of two goods that the consumer agrees to…

Q: ity = XY + 3X. If prices of X and Y are Birr 4 and Birr 2 respectively; and if a consumer has an…

A: Utility refers to the satisfaction. The aim of the consumer is to maximize the utility given the…

Q: Suppose Jane is always willing to give up one apple for one orange. Then, the MRS for apples to…

A: In economics, an individual has the face the trade-off between the alternatives to make different…

Q: e marginal rate of substitution measures the distance between one indifference curve and tne •True

A: Marginal Rate of Substitution : The Marginal Rate of Substitution can be defined as the amount 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: Higher Indifference curve means: (a) Consumer has more income (b) Price of goods have reduced (c)…

A: Concerning two commodities, an indifference curve is a graph that shows which combinations of the…

Q: Comparing the slope of the budget line (Opportunity Cost or relative price of Good Y) with the slope…

A: In economics, the marginal rate of substitution (MRS) is the quantity of one good that a customer is…

Q: The price of coke is $1.50 (y axis); the price of burger is $4.50 (x axis). Suppose that Ahmed does…

A:

Q: Suppose that the following utility function is given U(X,Y) = x2+Y Which of the following is…

A: A utility function is said to be convex utility preference if its quasi concave which implies the…

Q: Suppose preferences do not exhibit diminishing marginal rate of substitution. Can we set MRS=n to…

A: The Golden Rule Bundle is defined as the best bundle offered by the Indifference curve to the…

Q: Suppose a consumer consumes two goods, X and Y. The slope of the budget constraint equals the a.…

A: A budget constraint illustrates the various combinations of two goods that a consumer can purchase…

Q: Suppose that the following utility function is given U(X,Y) = X//3y1/2, which of the following is…

A: Given  Utility function  U=x1/3y1/2   ......... (1)

Q: Which feature of indifference curves guarantees this result? a. Concavit of indifference curves b.…

A: An indifference curve(IC) is a locus/contour of the different bundle that has the same utility at…

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: 1. Graph a typical indifference curve for the following utility functions and determine whether they…

A: Law of diminishing marginal utility states that every additional unit consumed provides lesser and…

Q: gopal is a rational consumer and consumes two goods x and y. is a cardinal measure of utility or…

A: A combination of two things that deliver the same amount of enjoyment to the consumer is depicted by…

Q: The convex shape of indifference curve is dur to _______ marginal rate of Substitution

A: # Indifference curve is the locus of points which shows the combination of two goods which makes the…

Q: Q.2 The slope of the indifference curve is equal to which of the following? A. One B. Marginal…

A: According to the given question Indifference curve was first named by the economist Pareto it…

Q: The shape of a person's indifference curves between two goods depends on A) the marginal rate of…

A: Government has certain tax revenue with them through which they have to carry expenditure on…

Q: As a person receives more of a good, the _______________ from each additional unit of the good…

A: Wants satisfying power of commodity called utility , here we choose the correct option and explain…

Q: Prove that the utility maximization conditions as suggested by the “marginal utility framework” are…

A: Individuals and organizations take a stab at the most significant level of pleasure from their…

Q: If a consumer is indifferent between two consumption bundles: The two bundles lie outside the budget…

A: Ans 1) A consumer is a person who demands goods and services. He chooses between different variety…

Q: Indifference curves represent: a) Ability to pay b) Total Utility c) Marginal Utility d) None of the…

A: Total utility refers to the total satisfaction that a consumer gets from consuming a good. Marginal…

Q: Make a curve of the budget line curve with the Indifference curve, make a separation between the…

A: In economics, and in particular in consumer choice theory, the substitution effect is one aspect of…