Q.4 Consumer attains his/her equilibrium at a point where the budget line: (a) Is below indifference curve (b) Is above indifference curve (c) Is tangent to indifference curve (d) Cuts indifference curve

Q: It is known that the indifference curve is convex. What does this tell you about the relationship…

A: The indifference curve refers to the graphical representation of different combinations of two goods…

Q: The consumer is in equilibrium when        a)the budget line is tangent to the indifference curve at…

A: Consumer equilibrium is a point at which consumer gets the most satisfaction possible from their…

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: At each point on an indifference curve:             total utility is the same.             the…

A: The indifference curve analysis is based ordinal measurement of utility.  Ordinal measurement of…

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: With reference to the indifference theory with good Y on the vertical axis and good X on the…

A: Indifference curve is the graph which shows the two combinations Of two goods which gives equal…

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: 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: 0.6 As a consumer moves along an indifference curve, then each point to the right of a given point…

A: # The correct option is (B)

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: Using the concept of consumer choices, draw a graphical representation of utility maximization. Your…

A: The diagram is shown in the next step.

Q: Define indifference curve and budget line and their slopes. Discuss various properties of the…

A: An indifference curve, with respect to two commodities, is a graph showing those combinations of the…

Q: For each of the following utility functions (i) derive the equations describing the indifference…

A: Note: As per the guidelines we're only entitled to answer only first three parts of the MCQ type…

Q: While discussing the choice bundle of a consumer, differentiate between Boundary Optimum and…

A: With an interior optimum the consumer chooses a basket that contains positive quantities of all…

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: 6.2. With reference to the indifference theory with good Y on the vertical axis and good X on the…

A: Microeconomics studies the economic behavior of individual units such as a firm, a market, a…

Q: Consider two bundles of coffee and chocolate and how Ted feels about them. The first bundle consists…

A: An indifference curve is a graphical representation of all the combinations of two goods, let’s say…

Q: How do indifference curves represent the consumer's preferences?

A: The indifference curve is a mathematical representation of the combination of all the consumption…

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: Suppose that a consumer has the indifference map shown above. The relevant budget line is  LZ. The…

A: The budget line depicts the combination of two goods, that a consumer can buy with a given level of…

Q: Your classmate tells you that he is indifferent between three soft drinks and two hamburgers or two…

A: Indifference curve An indifference curve refers to a graphical representation of two combination of…

Q: Why is the slope of an indifference curve convex? Which is the best indifference curve?

A: "Indifference curve is defined as the locus of point of combination of two goods, good 1 and good 2,…

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

A: The equilibrium of consumer is established when he derives maximum satisfaction. In case 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: .Draw the indifference curve diagrams for the utility functions listed below. Plot x on the…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Write the general equation of the MRS for each utility function. Write the equation for the…

A: Since you have asked multiple questions with multiple subparts, so as per Bartleby's guideline we…

Q: Suppose that you have two consumption choices: good X, and good Y. An indifference curve is the set…

A: Indifference curve show the relationship between consumption of two goods and service , consume by…

Q: Question 17 When considering her budget, the highest indifference curve that a consumer can reach is…

A: An indifference curve shows the consumer’s preference scale between two goods.

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: Since the consumer is indifferent between all points on an indifference curve, no point is…

A: According to the consumer theory, if an individual is consuming the positive amount of two goods…

Q: Gopal is a rational consumer and consumes two goods X and Y. Is a cardinal measure of utility or…

A: Indifference curve shows the various combinations of two commodities that provides the same level of…

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: True or false.  A change in prices or income can alter preferences and thus the indifference curves…

A: In the mentioned question, we are asked whether there is any shift seen in the indifference curve…

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

A: Marginal rate of substitution depicts the relative price of two goods.

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: Outline the four properties that apply to all indifference curves.

A: Indifference curve shows the combination of two good that gives the same level of satisfaction to…

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: 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.