t is known that the indifference curve is convex.

Q: draw a consumer’s indifference curves for coke and cheese. pick a point on an indifference curve for…

A:

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: what does an indifference curve look like of 2 goods U(J,K)=min(K,2J^2) is it a hyperbola? J IS ON…

A:

Q: (a) Sketch Casper's budget set and shade it in. (b) Sketch some of his indifference curves, compute…

A: Let the price of cheese be Px  = 2$ The price of cocoa be Py = y^2 $ Income = M = $30 Utility…

Q: Why does the optimal consumption bundle occur where the budget line is tangent to the indifference…

A: Answer: Introduction: A consumer maximizes his/her consumption where the slope of the budget line is…

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: What information is contained in an indifference curve? Why are such curves Downward sloping

A: Information contained in the indifference curve is: It represents all those combinations of goods…

Q: If the slope of indifference curve is -0.8 and the change in X axis is 8, what is the change in Y…

A: A consumer maximizes his utility by consuming at a point where the indifference curve of 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: Why do we expect that indifference curves will never cross?

A: The economics as a study is based upon the idea that the economies, or the societies around the…

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: Peter's utility function: U(x, y) = 4x + y Peter's income is 200 and the price of good x is 5 and…

A: The word utility means satisfaction. Consumer spends his income for the consumption of goods and…

Q: What information is contained in an indifference curve? Why are such curves Convex to the origin

A: Indifference curve (IC) is an important concept in consumer theory under micro economics.

Q: If the price of one of the products is associated with indifference curves increase, all else the…

A: Answer - If the price of one of the products is associated with the indifference curves increase,…

Q: J 4 a. Define an Indifference Curve (IC)

A: In today's microeconomics, indifference curves are utilised to show consumer preferences and…

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: 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: Pick a point on an indifference curve for wine andcheese, and show the marginal rate of…

A: Indifference curve (IC) is the locus of combination of two goods for which the consumer derives same…

Q: An indifference curve slopes down towards right since more of one commodity and less of another

A: To find : Indifference curve slopes down towards right since more of one commodity and less of…

Q: discuss the three assumptions of indifference curves.

A: "Utility is the usefulness of a commodity for the consumer." When the consumer derives the same…

Q: What can be the implications of a positively sloping indifference curve?

A: Indifference curves are those curves that represent combinations of two goods that give the same…

Q: Consider the following figure showing three budget lines corresponding to a change in income (with…

A: Income elasticity of demand: - Income elasticity of demand measures the responsiveness of change in…

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: What are indifference curves?

A: The utility is a want satisfying power of a commodity. Marginal utility is the additional utility…

Q: Why is the consumer’s MRS equal to the price ratio at the optimal consumption point? Give a…

A: Answer: A consumer maximizes his/her utility where the indifference curve is tangent to the budget…

Q: Isn't the utility function is perfect complement: min{} and the indifference curves should be…

A: A potential extension to the analysis is general equilibrium analysis or how demand and supply…

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: Consider the bundle 2 pizza and 8 coke. Label this point. What can you say about the slope of the…

A: Indiffernce curve graphical representation of the combination of two goods that the consumer is…

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: Ana is in a band and likes to advertise upcoming shows using flyers she posts around the city.…

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Q: Adam consumes no goods other than mandarins (M) and bananas (B). He considers 2 bananas to be…

A: Consumer theory: It studies the behavior of consumers based on their consumption preferences given…

Q: ) what do you mean by budget constraints, indifference curve and indifference map? What are the…

A: Budget constraint is defined as the possible combinations of the consumption which one can afford…

Q: In case of the complementary goods what is the shape of the indifference curve ??

A: According to the given question Actually complementary goods are those goods which are initially an…

Q: How to explain indifference curve and also describe the properties of indifference curve?

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Q: For Mary, shampoo and conditioner are perfect complements. She likes to use 1 squirt of shampoo and…

A: For Mary, shampoo and conditioner are perfect complements.  1 squirt of shampoo is used with 1…

Q: Why is it impossible for two indifference curves to intersect one another?

A: Indifference curves show various combinations of goods between which the consumers are indifferent.…

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: Troy has preferences for laptops (L), and drones (D). Laptops costs $750 a unit and drones costs…

A: Indifference curve shows the combinations of two goods that can be produced at given level of price…

Q: Examine and show with a graph how a consumer attains equilibrium under the Indifference curve…

A: Utility is maximized at the point of tangency between indifference curve and budget line. At this…

Q: Define A consumer prefers a higher indifference curve to a lower one.

A: An ‘indifference curve(IC)’ refers to a graph that shows the combinations of  two commodities. These…

Q: Charlie has the utility function U(xA, xB) = xAxB. His indifference curve passing through 35 apples…

A: Given Utility function:  U(xA,xB)=xAxB           .... (1) His indifference curve passes though (35…

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: Consider that Pepsi (P) and Coke (C) are perfect substitutes. Draw the graph of an indifference map…

A: An indifference curve (IC) shows combination of two goods (substitutes or complements) that give a…

Q: A higher indifference curve shows

A: A higher indifference curve shows higher level of

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: What information is contained in an indifference curve? Why are such curves: (6) Downward sloping…

A: An indifference curve is a graphical presentation of various combinations of two goods where a…

Q: What is the relationship between an indifference curve and budget constraint?

A: Indifference curve: An indifference curve shows the different combinations of two goods that the…

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.