Answered: T/F Explain If preference is monotonic…

T/F Explain If preference is monotonic but not strongly monotonic, indifference curves are upward sloping but may have flat portions.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

ChapterE: Budget Constraint And Indifference Curve Analysis

Section: Chapter Questions

Problem 4QP

See similar textbooks

Related questions

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: 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: , Draw indifference curves for the following utility functions. a) u(x, y) = x + 2y b) u(x, y) =…

A: Utility Function is a function which relates the amount of the consumption goods and utility derived…

Q: indifference curve

A: Indifference curve (IC) is the locus of various combinations of commodities yielding same utility.…

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: If an indifference curve is a vertical line, does theamount of the good on the y -axis influence…

A: The indifference curve refers to the possible combinations of two goods that yield the same level of…

Q: If the utility function of a consumer is given by U(X, Y)= VX+ 2vY. Which one of the following…

A: Indifference curve is the curve which shows the combination of two goods in which consumer gets the…

Q: Q) U = xy and y = x(1+y) Are points (1,9) and (5,1) on the same indifference curve？ Explain it…

A: An Indifference curve represents different combinations of two goods ( say , good X and good Y )…

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: MRS is constant along a linear indifference curve.

A: The 'marginal rate of substitution' along an indifference curve is given by MRS=-MUxMUy

Q: The value in Y axis has changed from 14.94 to 10.98 and the value in X axis has changed from 9.12 to…

A: Change in Y is 3.96 Change in X is 6.83

Q: The monthly profit, in soles, from the sale of q bracelets is given by: U (g) = aq3 + bg² + cq - 5…

A: Profit: U = aq3 + bg² + cq - 5 000 MU = dU/dq MU = 3aq2 + 2bq + c

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: Q12. If indifference curve is straight line downward sloping, (a) MRS is increasing (b) MRS is…

A: According to the given question An indifference curve is a curve which is actually and generally…

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: Consider the following indifference curves. UI U3 U4 U2 A tangency solution is never possible in the…

A: A tangency condition is when the budget line touches the indifference curve at some point. The…

Q: Consider the following equation for an indifference curve: y = 20/x. At point A (2, 10), the MRS is?

A: The indifference curve shows us the consumption of two commodities that are consumed by the consumer…

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: What are indifference curves?

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

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: 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: Depict utility function on a number line: U(x)=(x-6)^2 Indifference set around x=3 Lower contour set…

A: Utility function is defined as a function that measures the satisfaction derived by a consumer as a…

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: 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: 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: Discuss five properties of indifference curves and their relevance for consumer theory

A: Indifference curves represents the utility obtained by a consumer as a combination of two goods.

Q: Lucy's company has just promoted her to a managerial position and given her a new office. She is…

A: The indifference curve shows the combination of points that provides the same level of utility to…

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: What are the two basic differences between utility analysis and indifference curve analysis?

A: According to the given question the two basic difference between the indifference curve analysis and…

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: Show that indifference curves are (a) convex to the origin (b) cannot intersect one another? What…

A: Indifference Curve: An indifference curve shows different combinations of two commodities giving the…

Q: T/F Explain Any transitive preference is complete.

A: Transitivity of preferences may be fundamentals distributed by most major up-to-date rational,…

Q: An indifference curve is also known as___________.

A: Indifference curve - It is a graph that depicts the combination of two goods where at every point…

Q: Define indifference curve .

A: Utility refers to the want satisfying power of a commodity. The two approaches used to measure…

Q: Elaborate difference varieties/types of indifference curve?

A: Utility refers to the want satisfying power of a commodity. The two approaches used to measure…

Q: A consumer is having a monotonic preference. What can you say about his preference on these bundles…

A: # the concept of monotonic preferences simply means that if a consumer is getting more of a good…

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: MRS is constant along a linear indifference curve

A: An indifference curve is a curve that represents the combination of two goods that give a consumer…

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: 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: n indifference curve,

A: In the given case, Angela has rejected an offer considering fairness of work. This is an additional…

Q: Each person has an infinite number of indifference curves. True False

A: True Statement.

Question

T/F Explain

If preference is monotonic but not strongly monotonic, indifference curves are upward sloping but may have flat portions.

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Lower indifference curve represents higher level of satisfaction True/False
A hypothetical survey shows that most bike riders prefer Honda to Yamaha. What does this mean in the ordinal and cardinal utility analysis? If the survey is true, how do you reconcile the fact that we find more people driving Yamaha motor bikes than those driving Honda?
Derive utility maximisation of a consumer using the tool of indifference curve analysis
If total utility increases as wealth increases, the first derivative of the utility function is negative. TRUE OR FALSE
An indifference curve is also known as___________.
Determine which, if any, of Properties 4–1 through 4–4 are violated by the indifference curves shown in the following diagram
‘An individual’s indifference curves may cross in decisions under uncertainty.’ Evaluate this statement using graphical explanation .
Question 10 A consumer’s indifference curves will be influenced by all the following except: education advertising age household size prices
“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?
It is the property of indifference curve that no two ICs can intersect each other because: a. same combination of two goods cannot give different level of satisfaction. b. of diminishing MRS. c. consumer preferences are transitive. d. MRS will not equal with MRT.
Give an example of monotonic preference
If an indifference curve is a vertical line, does theamount of the good on the y -axis influence theconsumer’s utility?