Think of some other goods for which your preferences might be concave.

Q: he insists on consuming exactly one sweet tea for every two burgers that he eats. Then, using an…

A: An indifference bend tells a blend of two products that offer equivalent fulfillment and utility to…

Q: Would you expect marginal utility torise or fall with additional consumption of a good? Why?

A: The utility is something that a consumer gains after consuming a good or a product. It is measured…

Q: What are the assumptions of the law of the diminishing marginal utility in economics

A: The law of diminishing marginal utility states that as an additional unit is consumed, the marginal…

Q: To remain in consumer​ optimum, a price decrease requires(blank) in consumption. A price increase…

A: 1. As per law of demand, decrease in price will result in increase in demand.   A price decrease…

Q: Show how the budget constraint affects utility maximization.

A: Answer: Introduction: A consumer maximizes his/her utility by choosing the bundle of goods that…

Q: Which of the following utility functions represent preferences which do not satisfy monotonicity? U=…

A: Monotonic preferences refer to such consumer preferences towards the greater consumption of goods…

Q: How does a rational consumer choose his optimal consumption bundle? Graphically show the…

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

Q: A normal good An inferior good When the price of this commodity rises, the substitution effect is…

A: If customers don't buy much less of a good whilst income rises then it's a NORMAL GOOD, for this…

Q: The law of diminishing marginal utility says that.... ........... as a person consumes more and more…

A: The consumers, or the individuals, or the households purchase goods, and services in order to…

Q: The following statement is true for consumer preferences: a) The axiom of weak monotonicity implies…

A: Consumer preference: It refers to the items that a consumer wants to buy. The change in consumer…

Q: Would you expect marginal utility to rise or fall with additional consumption of a good? Why?

A: Marginal utility is the change in the total utility when a person consumes an additional unit of a…

Q: What is cardinal utility theory?

A: Utility is a term referring to the overall satisfaction obtained from consuming a good or service.

Q: Mary has the utility function u(x, y) = Inx + x^2. Are her preferences strongly convex?

A: u (x,y) = ln x +x2

Q: Consider the indifference curve map and budget constraint for two goods, X and Y. Suppose the good…

A: Normal goods are those goods whose quantity demanded increases, when the income of the consumer…

Q: The marginal utility for the third unit of X is 60 utils, and the marginal utility for the fourth…

A: The law of diminishing marginal utility states that  as consumer consumes more and more of a good,…

Q: If the preferences are concave will the consumer ever consume both of the goods together?

A: According to behavioral economics, consumer’s preferences keep on changing due to change in their…

Q: John spends all his money on leather jackets and hats. John’s utility function is given by U(x1,…

A: Indifference curves are curves that show a combination of the goods that provide equal satisfaction…

Q: How does a consumer’s optimal choice of goods change if all prices and the consumer’s income double?

A: If prices and consumer’s income will be double then there is no effect in budget constraint and it…

Q: Racquel tells you that she prefers hamburgers to hotdogs, hotdogs to nuggets, and nuggets to…

A: In economics, consumer preferences helps to analyze the behavior of a demand side participants when…

Q: According to the law of diminishing marginal utility:   a. as you consume less of something, your…

A: As consumer consumes more of one good, the marginal utility derived from each subsequent unit…

Q: The following statement is true for consumer preferences. a) /The axiom of weak monotonicity…

A: Consumer preference: It refers to the items that a consumer wants to buy. The change in consumer…

Q: Why is “consumer's utility is impossible to measure and quantify? Explain your answer.

A: In economics, utility refers to the entire pleasure derived from the consumption of an item or…

Q: ive an example of inferior good and an example of normal good that you have encountered and how has…

A: Inferior goods are those goods of which the demand for products decreases and income level…

Q: Napoleon has preferences on bundles of two goods (x,y). Napoleon finds (x,y) is at least as good as…

A: To determine whether the preferences are transitive or not.

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: Suppose the weighted marginal utility for two goods, x and y, at a position of consumer equilibrium…

A: Here, weighted marginal utility is given as 70 at equilibrium, it implies that MUm is equal to 70.

Q: A consumer has a budget set aside for entertainment during the year, and they spend the budget on…

A: An indifference curve shows various possible combinations of two commodities that gives an equal…

Q: Check if the following utility functions represent the same preferences: u = x+y, v = x3 + y3, w =…

A:

Q: Assume well behaved preferences for a consumer. If total price of good on Y axis goes up, ceteris…

A: A well-behaved consumer means the preference relation is convex and monotonic in nature

Q: draw a budget constraint and indifference curves for pizza and pepsi .show what happens to budget…

A: A budget constraint refers to the different combinations of two commodities that can be consumed by…

Q: Supreme Court Justice Bret Kavanaugh likes beer. The first beer he drinks yields 20 utils; the…

A: Answer: option a (all of these) Explanation: Quantity of beer Marginal utility Total utility 1…

Q: Muoki says, “I’d rather see an action movie than a comedy, and I’d rather see a comedy  than a…

A: Transitivity Axiom: Suppose there is three bundles, i.e., A, B, and C If consumer prefers A over B,…

Q: Consider two normal goods: pepsi and pizza. if the price of pepsi decreases then the consumption of…

A:

Q: What is the axiom of consumer choice that implies that consumers spend all their income in order to…

A: The axiom of consumer choice that implies that consumers spend all their income in order to maximize…

Q: Would you expect total utility to rise or fall with additional consumption of a good? Why?

A: Marginal utility is the additional satisfaction that is obtained from consuming one more unit of the…

Q: A household with strictly convex preferences may consume only one of two goods.

A: Strict convexity of preferences may be a stronger property than simply plain convexity. Preferences…

Q: Draw a budget constraint and indifference curves for two goods-cheese and wine. Show what happens to…

A: A budget constraint shows different combinations of two goods that an individual is able to consume…

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…

Q: Suppose that the only items you consume are bread and wine. If the price of bread were to increase…

A: When income or price changes, the budget constraint paradigm suggests that a variety of actions are…

Q: If we consume an additional unit of goods when utility is maximum, the utility we get from this…

A: Utility refers to satisfaction of consumers that they can get by consuming goods and services.…

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…