Serves as the boundary for the affordable and non-affordable combination of goods and services. Select one: a. Isocost b. isoquant c. budget line d. indifference curve
Q: Theodore's budget line has changed from A to B. Which of the following explains the change in…
A: Budget line shows combinations of two goods that can be bought with given level of income
Q: Millet (a type of grain cereal eaten my many in the developing world) and rice are normal goods…
A: Change in the price of a good leads to the change in quantity demanded through two effects,…
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: 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: 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: Example of budget line
A: A budget line shows all the combinations of two goods X and Y which the consumer can afford to buy…
Q: Celine won the prize at the end-of-year party and she had to choose between a $100 Amazon gift card…
A: The budget line is a graphical representation of all possible combinations of the two commodities…
Q: Millet (a type of grain cereal eaten my many in the developing world) and rice are normal goods…
A: The demand function is a relationship between the customer's demand for a product and its cost when…
Q: Write down and explain the four properties of indifference curve.provide adequate graphs
A: The indifference curve shows various combinations of two goods that give the same level of utility…
Q: Briefly explain the difference between indifference curve and iso-quant curve and similarly between…
A: In microeconomics, two main areas of study are consumer theory and production theory. Indifference…
Q: Draw and label the following budget curves on a clearly labeled graph. A consumer uses their full…
A: A budget line is one which shows various combinations of two goods that a consumer can purchase by…
Q: Y 500 Budget line I 300 A 200 Budget line II X 100 в с The consumer's initial budget line is I with…
A: A graphical representation in which all possible combinations of two products are purchased with…
Q: When a consumer earns a higher income, it rotates the budget line outward around the point where it…
A: A BL (budget line) demonstrates the two commodities whose combination a consumer can render to buy…
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: Gopal is a rational consumer and consumes two goods X and Y. Is a cardinal measure of utility or…
A: Gopal is a rational consumer and consumes two goods X and Y. No, A cardinal measure of utility or…
Q: What is the slope of the indifference curve at a point called? The Marginal Utility Ratio (MUR) The…
A: The consumer will maximise utility at a point where the slope of an indifference curve is equal to…
Q: Tom has $ 300 to spend on two goods: A and B. Price of A is $3 and price of B is $5. Identify the…
A: The combinations of the 2 goods that will lie to the right of Tom's budget line would be such a…
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: The CHRIS AND DAVID problem Each day Chris buys 2 coffees and 1 tea. Where Chris resides, coffee is…
A: Chris: 2C+1T PC= $1 PT= $0.5 David: 1C+2T PC= $0.5 PT=$1
Q: 1 Good 1 is on the horizontal axis and good 2 is on the vertical axis. Pi is the price of good 1 and…
A: Individuals have budget. Budget states the amount of goods and services that can be bought with a…
Q: A halving of the prices good A and good B has the same effect on the budget line as doubling the…
A: The graph that depicts all of the combinations that are possible to be brought with the given income…
Q: If a budget line is below the indifference curve. What does this mean? Are the points on the…
A: # given the prices of the two goods a budget line always represents the combination of goods which…
Q: Graph this indifference curve and label "Quantity of y" on the vertical axis and "Quantity of X" on…
A: Indifference curve shows combination of two goods which gives the consumer same level of…
Q: Use the Budget Line and Indifference Curve concepts to illustrate how a consumer can obtain the…
A: The curve that depicts various combinations of goods and services which could provide different…
Q: Draw the indifference curves when X is fake news or hoax, Y is journalist’s work winning the…
A: Optimal choice - It is the best combination of goods which will lead to the best satisfaction of the…
Q: Originally the consumer faces the budget line p1x1 + p2x2 = m. Then the price of good 1 doubles, the…
A: Budget line shows all possible combination of two goods that consumer is able to consume when…
Q: he rate of market substitution is: The consumer’s marginal utility The…
A: The rate which depicts the amount of one good being substituted for another good and is being used…
Q: Luke has a monthly income of $80. He spends this money making telephone calls from home (measured in…
A: Luke's monthly income = $80 Total number of call minutes Luke can make under Plan A = $80/$0.50…
Q: Given that Tebogo's income is P1800, price of food is P30 and price of entertainment is P40. Draw…
A: The Income of the Tebogo is P1800, it means that this is the maximum amount which can be used to…
Q: Comparing the slope of the budget line (Opportunity Cost of Good Y) with the slope of the…
A: Below is the edited graph:
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: Suppose that income rises 50% while price of X rises 25% and price of Y rises 75%. How would the…
A: Budget line is also known as price line for consumer it shows different combinations of two goods…
Q: The income of a consumer is $40, the price of A is $5, and the price of B is $2. If the quantity of…
A: We are going to find the slope of budget equation to answer this question. Slope of the budget line…
Q: Joe's income is $1000, the price of pizza (P) is $10 per unit, and the price of burger (B) is $8.…
A: Budget constraint: It shows all the feasible combinations of goods and services that can be…
Q: Economists use "indifference curves" to indicate individuals' preferences. These curves are parallel…
A: The indifference curve represents the consumer's preference and is downward slopping and do not…
Q: A consumer is choosing between magazines and books. Several indifference curves are shown on the…
A: Given that: The Income of the consumer= $500 The Price of books = $10 Suppose, the consumer is…
Q: A convex indifference curve implies what type of behavior? diminishing marginal utility…
A: Indifference curve are defined as the locus of the points with same utility level at each point.
Q: Set 2: Budget line & Indifference curve 1 Diagram the following budget constraints: $4,000; Px $50;…
A: Budget line shows the different possible combination of two goods that can be purchased within the…
Q: An increase in the price of good y would Select one: a. Shift the budget line b. budget line pivots…
A: Answer: b. budget line pivots from x-intercept to the left An indifference curve shows the…
Q: The budget line shows: all possible combinations of two goods that yield the same level…
A: Budget lines shows the combination of expenditure's of two different goods and the given level of…
Q: Hira has Rs.1200 a week to spend on yogurt and mangoes. The price of yogurt is Rs.200, and mangoes…
A: The budget line, additionally referred to as the budget constraint, exhibits all the mixtures of two…
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…
Q: 5. Income Effect & Substitution Effect (20%)- (still use budget line with energy drink on the…
A: Income = $160 Price of energy drink = $2 Price of the bag of popcorn= $5 let the number of drinks be…
Q: Combination Hamburgers/week Pizzas/week A В 3 3. Compute The marginal rate of substitution on each…
A: Answer 3. Marginal Rate of Substitution is the amount of a good that a consumer is willing to…
Serves as the boundary for the affordable and non-affordable combination of goods and services.
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- An increase in the price of good y would Select one: a. Shift the budget line b. budget line pivots from x-intercept to the left c. Shift the indifference curve d. budget line pivots from x-intercept to the righturgent answer need!!!!!!!! Write down the concept of "Indifferent Curve' and *Budget line' with properexplanation and graphical presentation. ples write brieflyDoes a Budget constraint has only one individual indifference curve? Does every isocost line has a individual isoquant curve?
- I MUST DRAW THE BUDGET CONSTRAINT AND INDIFFERENCE CURVEjust the answers for Budget line indifference curve graph multiple answer choiceSally loves to drink her coffee with two teaspoons of sugar. The unit price of coffee is $3 and the unit price of sugar is $1. Sally’s income is $180. Draw the budget line and indifference curves. Find the utility-maximizing bundle for Sally. (Place S in the horizontal axis. Remember to show all your steps.)
- The income of a consumer is $40, the price of A is $5, and the price of B is $2. If the quantity of A is measured vertically, then the slope of the budget line is?Draw the indifference curve for the following with there shape name. Imperfect substitute Perfect substitute Perfect complementWhen marginal utility is decreasing but positive, total utility is a increasing at a decreasing rate b increasing at an increasing rate c decreasing at a decreasing rate d decreasing at an increasing rate
- draw a graph of indifference curves and budget line. including explain the meaning of the marginal rate of substitution of products x and y (MRSxy).Joe's income is $500, the price of food (F, y-axis) is $2 per unit, and the price ofshelter (S, x-axis) is $100. Which of the following represents his budgetconstraint?What is a budget line slope called
