Under the ordinal theory, a consumer is expected to rank his or her scale of preference from the least to the most satisfying. From this knowledge, describe the assumptions of the ordinal utility theory With the help of illustrations, show how the consumer attains equilibrium under the indifference curve approach As a student of microeconomics, use the knowledge attained during the teaching-learning process and show how the demand curve is derived under the cardinal theory approach .

Under the ordinal theory, a consumer is expected to rank his or her scale of preference from the least to the most satisfying. From this knowledge, describe the assumptions of the ordinal utility theory With the help of illustrations, show how the consumer attains equilibrium under the indifference curve approach As a student of microeconomics, use the knowledge attained during the teaching-learning process and show how the demand curve is derived under the cardinal theory approach .

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 22SQ

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The "useful" are hypothetical units of measurement with which we suppose it can be measure the “satisfaction” that a consumer can derive from consuming a good or service. The amount of utility (satisfaction) that the consumer can derive from consuming a good or service remains constant, no matter how much we consume. "Utility" is something we can measure objectively and is the same for all beings humans. Likewise, we can know in advance the usefulness of a good before consume it. An “indifference” curve represents the combination of two goods that we would want consume, regardless of disposable income or their price. A consumer is in "equilibrium" when his indifference curve is tangent (touches) his budget line. Truth or false and why
Under the ordinal theory, a consumer is expected to rank his or her scale of preference from the least to the most satisfying. From this knowledge, describe the assumptions of the ordinal utility theory how do t the consumer attains equilibrium under the indifference curve approach use the idea of microeconmics ,show how the demand curve is derived under the cardinal theory approach
An indifference curve is the locus of points of combination of goods which gives equal satisfaction to the consumer and consumer became indifferent about those combination of good. What is the relevance of equilibrium conditions to identify consumers equilibrium under indifference curve analysis, how it is different from cardinal measurement of utility?
This question refers to the utility function and indifference curve equations below the Parameter table. Use the equation for the indifference curve for a given level of utility to calculate a set of plot points. Each set of plot points is for one indifference curve (IC1 or IC2). Based on the given levels of utility indicated, calculate a set of points (in the Table of plot points, for the range given) for:(i) U1 (using the equation for IC1) and,(ii) U2 (using the equation for IC2).