What is budget variance?

Q: The part of income which is not consumed is called ________

A: Savings is the left over amount from.the income which is not CONSUMED.

Q: Example of budget line

A: A budget line shows all the combinations of two goods X and Y which the consumer can afford to buy…

Q: What is budget said explain what can lead to change in budget set'

A: Budget refers to the amount of money income that is available with the consumer to be used for…

Q: Huxley llost $80 in the stock market. According too behavioral economics research, how much of a…

A: Let's first learn about the concept of behavioral economics research. To study human nature and…

Q: Define marginal utility. (50 words)

A: Utility means the satisfaction that a consumer gets after the consumption of a good or service. It…

Q: True/False Marginal utility is 0 for the Consumption of the very first unit.

A: the term marginal utility simply means the extra satisfaction which a consumer gets when he consumes…

Q: What are the types of utility

A: Utility refers to the total satisfaction that is derived from consuming a good or a service. Utility…

Q: If price of X increases, how will it affect the consumer equillibrium?

A: Demand: - Demand is the relationship between the quantity demanded and the price of a good. There is…

Q: Marginal utility. Explain.

A: The complete enjoyment gained from the consumption of an item or service is referred to as utility…

Q: What is the matching concept?

A: The matching concept is an accounting practice whereby companies acknowledge revenue and related…

Q: If this consumer has $13.00 to spend on cans of beer and slices of pizza in any given week, then…

A: Answer: A consumer maximizes his/her utility where the following conditions are satisfied:…

Q: How do we measure utility? Are interpersonal (i.e. between people) comparisons valid? Why or why…

A: The measure that depicts the benefit or satisfaction that is being received by individual due to the…

Q: An equation that represents a utility-maximizing pattern of consumption of two goods, A and B, is…

A: Utility Maximising Condition of consumption of two goods A and B: Slope of Indifference Curve =…

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: What is mean by ‘Time' in types of utility ?

A: The term utility mean wants satisfying power of a commodity. The utility is the expected…

Q: What is a controllable source of budget variance

A: Budget variance is a measure used by governments,companies and individual  to find difference in…

Q: DEFINE Limit of consumption options

A: Democratic government is a type of government that is based on mixed economy. it has been seen that…

Q: What do we mean when we say consumer preferences are complete and transitive?

A: Consumer preferences shows the taste of the consumer and how much satisfaction it receives from…

Q: What is cardinal approach?

A:

Q: if the child buys either chocolates or hard candies one piece at a time, what will be his first two…

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

Q: What are indifference curves?

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

Q: Write down the equation for the budget constraint and then graph it for .. Px = $100 Py = $25…

A: Budget Constraint is an equation that depicts the limitations of the consumers. With the given…

Q: Quèstion 7 When total utility begins to decline marginal utility will be positive but it will…

A: The relationship between TU and can be summarised as follows :

Q: What is the matching principle?

A: Matching principle is an accounting term which is used to state that each and every expense occurred…

Q: What is a extrapolation

A: In economics there are several economic activities and events that cater to the different analyses…

Q: What is the logarithmic transform of the utility function U= , given the budget constraint Pa, 21 +…

A: We have to find logarithmic transform of the utility function.

Q: What are the three Gauss–Markov conditions? Explain.

A: According to Gauss-Markov theorem, when certain conditions are met, the ordinary least square…

Q: What is consumer srplus

A: Consumer surplus is the difference between a consumer's willingness price and the price he/she…

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: What is budget set explain what can lead to change in budget set!

A: Budget refers to the amount of money income that is available with the consumer to be used for…

Q: A consumer has a choice of spending $20,000 on a Honda or $14,000 on a Kia. She was observed buying…

A: The budget line of the consumer shows the different combinations of two goods that a consumer is…

Q: With the help of diagram explain how the shape of indifference curve?

A: The indifference curve shows the relationship between the two goods say x and y i.e. the person is…

Q: 25. The budget line is also known as the

A: Budget line is the locus of different combinations of two goods for which the expenditure will be…

Q: The slope of the budget line is the

A: Budget line is the representation of all possible combinations of two goods which can be purchased…

Q: Mathemeticaly prove that slope of budget line is -P1/P2

A: Budget line P1 X1 + P2 X2 = M P1 and P2 is the price of good X and Y respectively While X1 and X2…

Q: Ch. 5 Questions: 1.What is the Fisher Effect and why is it important?,

A: Fisher Effect essentially explains the connection between inflation,real financing cost and nominal…

Q: a consumer has a utility function u(X,Y) = XY4 what fraction of her income will

A: In the given Cobb Douglas utility function of the form U= XcYd, c equals 1 and d equals 4. The…

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: i student has a quasi-linear utility function .hore atui ono

A: The claim that both students eat too much is false, both students eat nothing at all Explanation -…

Q: Briefly describe the concept extrapolation.

A: Extrapolation involves making statistical forecasts by using historical trends that are projected…

Q: What can observing people’s actual choices tell us about their preferences? Whatis this approach…

A: Choices are the essentials in an economic system. A consumer being rational needs to take a…

Q: Utility is more closely related to he term

A: To find : Which term is more related to utility.

Q: How do we predict future utility?

A: Utility Concept In economics, utility refers to the complete satisfaction derived from the…

Q: What is budget equation for educational services?

A: The budget equation for educational services shows that costs is equal to revenue.

Q: In what way may the income of the consumer affect his buying behavior?

A: The income of the consumer is the amount that the consumer has to spend on various goods and…

Q: Explain Gauss–Markov Theorem with proof ? How estimators satisfy the equations?

A: In statistics, the Gauss-Markov theorem states that in a linear regression model in which the errors…

Q: What is the budget constraint?

A: Microeconomics discusses the economic behavior of the individual units such as a consumer, 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…

Q: n indifference curve,

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

Q: Under Marginal utility analysis, utility is assumed to be a

A: Under Marginal utility analysis, utility is assumed to be which concept: