True or false.  A change in prices or income can alter preferences and thus the indifference curves can shift.

Q: TRUE OR FALSE Each individual has a utility function that spits out a number representing how happy…

A:

Q: Please draw the indifference curve of u(x1,x2) = max {x1,x2} in the graph. Also please try to make…

A: We have utility function  u(x1,x2) = max {x1,x2}

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: Provide short answer for the following? Diminishing marginal utility.         2. Indifference…

A: 1.Diminishing marginal utility. it implies that keeping other things unchanged as we consume more…

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

A: We will answer the first question since the exact one was not specified. Please resubmit the…

Q: Drawing indifference curves: Carl likes taking the rides at Disneyland, but dislikes standing in…

A: Production possibility frontier (PPF) shows a probable combination of two commodities produced in an…

Q: An indifference curve is the locus of points of combination of goods which gives equal satisfaction…

A: Consumers Equilibrium: Consumer equilibrium is the situation of maximum satisfaction. When the…

Q: Which of the following statements is correct? Indifference curves cannot intersect due to the…

A: Indifference curve is a locus of different combinations of two goods that are consumed by consumers…

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: As a consumer moves along an indifference curve, then each point to the right will show higher…

A: Indifference curve is an indicative curve for any firm which shows combination providing equal…

Q: True or false.  Indifference curves are a graphical way to illustrate a person's tastes and…

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

Q: Ice cream and cakes are perfect substitutes for a child, and 2 units of ice cream is always worth 3…

A: The utility in terms of economics can be defined as the amount of satisfaction or happiness that a…

Q: Provide the critic of the cardinal utility and justify how the ordinal or indifference theory is…

A: A cardinal utility depicts that the welfare of an economy can be directly be given a value as it is…

Q: True or false.  Assuming utility positively depends on two goods, indifference curves can be upward…

A: An indifference curve is a graph that depicts the combination of two commodities that provide equal…

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: If a person's indifference curves can be represented as a straight line, the person views the goods…

A: The Indifference curve (IC) shows the various bundles of two goods that the consumer agrees to…

Q: 10 9 IC, 8 IC, 10 12 Good Y The utility a person gets from consuming an additional unit of Good Y at…

A: An indifference curve shows the various combinations of two goods that give the consumer equal…

Q: What does revealed preference theory based on? a) Utility and demand b) Observed consumer behavior…

A: Revealed preference: Revealed preference is a theory relating to somebody's consumption patterns,…

Q: True or false.  Maximizing choices occur when combinations of two goods are made such that they are…

A: An indifference curve is a contour line with the same utility at all points along the line. A line…

Q: if both x1 and x2 are "bads", utility will increase i) As x1 or x2 increases ii) As the marginal…

A: Dear student, as you have posted multiple questions but according to the policies and guidelines of…

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: An old nursery rhyme tells us : Jack Sprat would eat no fat; his wife would eat no lean. This tells…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following statements is true? OThe budget line shows the utility associated with all…

A: The budget line shows all the affordable consumption bundles so the first statement is incorrect.…

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: For any two goods (things you would like more of): Select one or more: a. Indifference curves are…

A: An indifference curve represents a combination of two things that give the consumer with the same…

Q: As the price of a good rise, the consumer will experience Select one: a. a southwesterly movement…

A: Indifference curve:- Indifference curve can be defined as a graph that represent different…

Q: Ross is a race car driver. The more he races, the happier he is. The level of happiness Ross feels…

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

Q: Assuming utility positively depends on two goods, indifference curves can cross or intersect. True…

A: Indifference curve is a graphical representation which shows different level of combinations of two…

Q: Suppose that you have two consumption choices: good X, and good Y. An indifference curve is the set…

A: Indifference curve show the relationship between consumption of two goods and service , consume by…

Q: Which feature of indifference curves guarantees this result? a. Concavit of indifference curves b.…

A: An indifference curve(IC) is a locus/contour of the different bundle that has the same utility at…

Q: he utility theory that describes how much of one market basket is preferred to another is called the…

A: There are two types of approaches in the concept of utility that is qualitative and quantitative.…

Q: T/F Explain If preference is strongly convex, the utility function will exhibit dimin- ishing…

A: The satisfaction or benefit acquired from consuming a product is referred to as utility;…

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: gopal is a rational consumer and consumes two goods x and y. is a cardinal measure of utility or…

A: A combination of two things that deliver the same amount of enjoyment to the consumer is depicted by…

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: True or False. As you move to the right of any indifference map, consumer utility always increases.…

A: The indifferent map represents different bundles of two commodities that an individual can consume…

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: Prove that the utility maximization conditions as suggested by the “marginal utility framework” are…

A: Individuals and organizations take a stab at the most significant level of pleasure from their…

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: A higher indifference curve shows

A: A higher indifference curve shows higher level of

Q: Indifference curves slopes down because there is a tradeoff between goods. If you give up some of…

A: the points with equal level of satisfaction.Some properties of Indifference curve are as:-1)…

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

A: For the aforementioned question, the correct option is C.

Q: The non-satiation assumption we make about people's's preferences entails that the indifference…

A: Indifference curve shows combinations of two goods that give same level of utility.