Q: Write down and explain the four properties of indifference curve. Provide adequate graphs.
A: A consumer maximizes his utility by consuming at a point where the indifference curve of the…
Q: Consider the following indifference curves. MRS =-1 U4 U2 U3 UI Suppose the price of X is $1.50 per…
A: This is a ‘consumer choice’ problem. This principle of rational choice allows one to derive the…
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: Suppose that G(x) = In(x) and H(y) = In(y). Please fill in the blanks. %3D absolute value of slope…
A: Indifference curve: An indifference curve is a graphical representation of the combination of two…
Q: T/F Explain If preference is monotonic but not strongly monotonic, indifference curves are upward…
A: The indifference curve is based on the ordinal utility analysis of Hicks and Allen. It represents…
Q: Is the indifference curve of U(x1,x2)=max(x1,x2) considered to be the curve for a perfect complement…
A: The utility function for perfect complements is given by: U(x1, x2) = min (x1, x2). Suppose a…
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: Define indifference map in not more than 2 lines
A: Before getting to the definition of indifference map we must first understand what is indifferent…
Q: Define the indifference map for an individual.
A: The want satisfying power of a commodity is termed as the utility. As a consumer consumes a good…
Q: Explain why non-convex indifference curve has a corner solution instead of interior solution?
A: IC (Indifference curve) shows the different agreement of two commodities between which a consumer is…
Q: Clearly comment on the validity of the statement as True or False. Justify your answer in either…
A: The following statement is false . Because slope of indifference curve is convex due to diminishing…
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: 9 True or False Explain If preference is monotonic but not strongly monotonic, indifference curves…
A: Meaning of Indifference Curve: The term indifference curve refers to a situation where there are…
Q: Determine which, if any, of Properties 4–1 through 4–4 are violated by the indifference curves shown…
A: An indifference curve is a graph showing combinations of two goods that give the consumer equal…
Q: MRS is constant along a linear indifference curve.
A: The 'marginal rate of substitution' along an indifference curve is given by MRS=-MUxMUy
Q: Which indifference curves violate the assumption of monotonicity? U3 only. U1 and U3. U1, U3 and U4.…
A: The assumption of monotonicity is that the indifference curve is negatively sloped. If the…
Q: Draw the indifference curves for nickels and dimes. Would they ever have a non-constant slope
A: Indifference shows the combination of two goods and services which provide the same utility. It is…
Q: Explain why convex preferences means that “averages are preferred to extremes.”
A: The convex preferences in the economy indicate that the consumers prefer the averages rather than…
Q: “Pertaining to different good characteristics; it is possible to distinguish between three different…
A: A graphical representation of a combination of products that gives a consumer a similar level of…
Q: Explain why indifference curvesa. are downward sloping.b. are convex to the origin.c. do not cross.
A: The indifference curve shows all the different combinations of two goods that provide the same…
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: Lower indifference curve represents higher level of satisfaction True/False
A: Indifference curve shows that all the combinations of goods lying on the curve will provide equal…
Q: 47. When indifference curve is L shaped, then two goods will be
A: Answer is given below
Q: Briefly explain why the indifference curve is downward sloping
A: According to the consumer's theory, an individual maximizes his utility by consuming at a point…
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: Consider the following equation for an indifference curve: y = 20/x. At point A (2, 10), the MRS is?
A: Given data: The equation for indifference curve is y=20x Point is A2, 10
Q: Use the image 2.2 below to answer this question. The slope of the indifference curve is given by…
A: Marginal utility describes the benefits or utility obtained from consumption of a commodity. It is…
Q: Explain how indifference curves can never cross.
A: Indifference curves can never cross each other. We can explain this with the help of the two axioms…
Q: Which of the following does NOT describe the optimal choice condition slope of budget constraint =…
A: Indifference curve: - it is the graphical representation of different combinations of two goods that…
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: If Brian Mulroney's money income increases and the prices of products J and K both increase, then…
A: The line that depicts a combination of both the goods that could be bought by a consumer through the…
Q: Explain graphically how indifference analysis can be used to derive a demand curve.
A: A demand curve can be explained as the curve which shows the quantity of goods that can be purchased…
Q: Explain why crossing indifference curves would lead to a logical inconsistency.
A: Indifference curves: Indifference curves show the various combinations of two goods that allow for…
Q: How do we decide the amount we buy on the indifference curve? MU1/P1 = MU2/P2 %3D MU1/P1 = P2 MU1/P2…
A: Indifference curve shows the combinations of goods that give consumer the same level of…
Q: Show that an indifference curve a Cannot be thick (cannot have positive thickness, rather than…
A: Indifference curve refers to the different combinations of two commodities that the consumer can…
Q: Define Indifference Curve. Explain properties of Indifference Curve with the help of…
A: Indifference Curve: An indifference curve represents various combinations of two commodities that…
Q: show that an indifference curve cannot be thick (cannot have positive thickness, rather than being…
A: An indifference curve, with relevancy two commodities, could be a graph showing those combinations…
Q: Describe the main characteristics of indifference curve.
A: Microeconomics studies the economic behavior of individual units such as a firm, a market, a…
Q: Which of the following is NOT true about indifference curves? O They are downward sloping O They do…
A: An Indifference curve is a locus of the combination of all the points that represent a different…
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: Q-: Define indifference curve and elaborate different varieties/types of indifference curve
A: An indifference curve shows a combination of two goods or services that provide the consumer with…
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: Define indifference curve .
A: Utility refers to the want satisfying power of a commodity. The two approaches used to measure…
Q: Antonin notices he is currently spending all of his money on a bundle (x1, x2) where his marginal…
A: The equilibrium in the consumption is obtained when the utility from the last dollar spent on each…
Q: Which of the following is not an assumption of indifference curve? Indifference curves tend to be…
A: Indifference curve shows different combinations of two goods that give same level of utility.
Q: Indifference curve is vital in explaining the ordinal approach, yet is criticized on the various…
A: The theory of indifference curve analysis was explained by hicks and Allen. According to this theory…
Q: ence curve and Discuss the properties of Indifference curv
A: Indifference curve(IC) is the locus of various combinations of commodities yielding same utility. If…
Q: The indifference curve for U=min(5x,4y) will be Select an answer and submit. For keyboard…
A: As Given utility function is U=min(5x,4y)
Q: n indifference curve,
A: In the given case, Angela has rejected an offer considering fairness of work. This is an additional…
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- Explain why indifference curvesa. are downward sloping.b. are convex to the origin.c. do not cross.“Pertaining to different good characteristics; it is possible to distinguish between three different types of indifference curves. One would be the typical negatively sloped convex function, a second would be a negatively sloped straight line, and a third would be an L-shaped function”. Examine the validity of this statement. Is it possible for the indifference curve to be positively sloped?Asap The marginal rate of substitution is the slope of an indifference curve. True False.
- Just confirming the ans dont copy Which characteristic of the indifference curve explains that the ranking of the bundles of goods by the consumer should be consistent? A. downward sloping indifference curve B. upward sloping indifference curve C. declining slope of the indifference curve D. indifference curve farther from the origin E. no correct answerSuppose Coffee and Tea have a perfect substitute indifference curve, with Coffee on the X-axisand Tea on the Y-Axis. We are also given that for the person, MRS = 10 and MRS < Px/Py.Graphically show and explain the optimal choice of the person. Show the necessarymathematical work to accompany your answer.The convex shape of indifference curve is dur to _______ marginal rate of Substitution
- Show that an indifference curve Cannot be thick (cannot have positive thickness, rather than being just a line). Cannot bend backward (forming a "hook" at the end). Cannot intersect another indifference curve.Q5 plz help quick The marginal rate of substitution of nickels for dimes is O negative and constant. O negative but varies from point to point on a given indifference curve. O zero. positive but decreases as the number of Nicole's increasesThe absolute value of the slope of the indifference curve given the law of diminishing marginal rate of substitution: Multiple Choice O is constant. declines as one moves
- Define the indifference map for an individual.Which characteristic of the indifference curve explains that the ranking of the bundles of goods by the consumer should be consistent? A. downward sloping indifference curve B. upward sloping indifference curve C. declining slope of the indifference curve D. indifference curve farther from the origin E. no correct answerThe indifference curve for U=min(5x,4y) will be Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a: vertical b: horizontal c: downward sloping straight line d: L- shaped. e: None of the above
