Which one of the following statements is incorrect?             Each point on a budget line stands for a different combination of 2 goods.             All points on a budget line stand for the same level of satisfaction.             The indifference curve is convex to the origin because of the law of diminishing marginal utility.             Each point on an indifference curve represents a different combination of 2 goods             All points on an indifference curve stand for the same level of satisfaction.

Q: Price for X is $1 and Y is $2.  Budget is $9.            Good X                Good Y…

A: The utility maximizing level is given as MUx/Px= MUy/Py Good X   Good Y   Quantity MUx/Px…

Q: Question 29     The marginal rate of substitution:             is constant along the indifference…

A: The consumers are the people who tend to buy various goods, and services with the motive of…

Q: 21.)Which of the four principles of indifference curves implies consumers prefer mixtures to…

A: Answer 21) "Correct option is c)" because when indifference curves are convex/bowed in then they…

Q: The consumer's utility-maximising point is where... a. The consumer's marginal utility curve is…

A: Here answer is “One indifference curve is tangent to the relevant budget line.”

Q: Question 9     Consumer equilibrium on an indifference map is at:             Any point on the…

A: Ans in step 2

Q: At each point on an indifference curve:             total utility is the same.             the…

A: The indifference curve analysis is based ordinal measurement of utility.  Ordinal measurement of…

Q: Question 9 If income decreases and prices are unchanged, the consumer’s budget constraint...…

A: Income decreases: It means purchasing power has fallen. At the same prices, the consumer can buy now…

Q: ) Causes consumers to become sadder if they like the good on the vertical axis. O Causes consumers…

A: Indifference curve is an economic tool to describe the combination of two products consumed by a…

Q: The blue budget line is for an income of $1000, Px=$5 and Py=$10. At point A, the person is evenly…

A:

Q: This module considers important concepts in economics: Total Utility, Marginal Utility, Diminishing…

A: Law of diminishing marginal utility states that with every additional unit consumption of a goods…

Q: Assume that a combination of two goods reflects a point of tangency between the budget line and an…

A: In consumer theory, the combination of goods and services that a consumer can acquire for his or her…

Q: The rate of market substitution is:             The consumer’s marginal utility             The…

A: The rate which depicts amount of one good being substituted for another good and is being used for…

Q: If you have Marginal utility of 2 with a Total utility equals to 56, then when marginal utility is…

A: Marginal utility refers to change in total utility with respect to change in output.

Q: Ahmed consumes 7 cookies. The marginal utility of the first cookie is 25 utils; of the second, 20…

A: Ahmed consumes 7 cookies, and the marginal utility at each unit of consumption of cookie are given…

Q: 40. As long as the principle of diminishing marginal utility is operating, any increased consumption…

A: The change in the total utility from the consumption of an additional unit of a good is known as a…

Q: Question 10 If look at the indifference curves and budget constraint for two goods, X and Y, we can…

A: An indifference curve is a graphic representation of a collection of products that give consumers…

Q: The law of diminishing marginal utility implies that... a. Total utility is constant as more units…

A: The law of diminishing marginal utility implies that as more and more units are consumed of a good,…

Q: Question 2     The rule for rational budget allocation by the consumer is that the marginal utility…

A: Answer in Step 2

Q: 8)  When Marginal Utility = 0, Total Utility is A) Maximum B) Constant C) Minimum D) None of the…

A: Total Utility:-  The overall amount of contentment achieved by a consumer as a result of consuming a…

Q: P Question 1 Anand has $100 to spend on apples and/or avocados. Suppose you have drawn his budget…

A: Correct answer "none of the above".

Q: Consumer spends $450 per week on two goods, X and Y. PX= $5 and PY=$3. His utility function is U=…

A: Given,  U= 0.5xy2

Q: Answer the question based on the table below showing the marginal utility schedules for product X…

A: A person can maximize his utility at the point where the marginal utility per dollar derived from…

Q: The marginal utility of a good or service declines as one more unit is consumed because: (a)…

A: Marginal utility is that utility which are consumer get after consuming an additional unit of…

Q: A consumer is in equilibrium and is spending income in such a way that the marginal utility of…

A: Here,

Q: Question 28     The marginal rate of substitution measures the:             extra utility that a…

A: Marginal rate of substitution : The Marginal Rate of substitution can be defined as the rate at…

Q: commodity is zero, then:             Total utility of this commodity has reached a maximum.…

A: The literal meaning of utility is satisfaction. It means the satisfaction derived by a consumer from…

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

A: An indifference curve is a graph that connects points on a graph that represent various quantities…

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: Question 8     The price of good X is $1.50 and that of good Y is $ 1.  A particular consumer who…

A: A consumer's increased enjoyment from having one more unit of an item or service is referred to as…

Q: Answer the question on the basis of the following total utility data for products L and M. Assume…

A: Given the income and the prices of the good the consumer aims to maximize the utility. The total…

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: QUESTION 8 If a consumer's preferences are represented by the utility function: U(x,y)=min{4x,y}…

A: This is a perfect complements utility function. Perfect complements are those goods which are…

Q: Question 11 Not yet answered P Flag question Suppose a consumer has the Utility Function…

A: Answer -

Q: Question 342. Under Marginal utility analysis, utility is assumed to be a A. Cardinal concept B.…

A: Marginal Utility can be referred to as the additional Utility obtained from the consumption of an…

Q: Question 7     The law of diminishing marginal utility states that:             Utility derived…

A: The concept of law of diminishing marginal utility was given by Marshall and states that all things…

Q: Question 30     Which of the following is not characteristic of indifference curves?…

A: Answer in step 2

Q: Participation Question 7: • A consumer derives utility from consuming integer units of Good X and…

A: Total utility refers to the total amount of satisfaction or fulfilment gained by a consumer as a…

Q: Q48 As a consumer moves along an indifference curve, ... a. The combination of goods will vary,…

A: An Indifference curve is a combination of two goods that gives same level of utility. One of the…

Q: Question 4 Explain the concept of utility, what its purpose is with regard to consumers and define…

A: Utility is an indicator of individuals' well-being in general. It was thought to measure the…

Q: bination of goods lying outside of the budget line:             implies that the consumer is not…

A: A budget line shows all the possible combinations of two goods that a consumer can buy with the…

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: Quantity of Cheese Cakes (slices per day) Total Utility (TU) Marginal Utility (MU) 1 20   2…

A: The marginal utility can be defined as the additional utility that is received from the consumption…