(a) To rank: the given combinations in the order of preference.

Question

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Answer 1

Question

Chapter 21A, Problem 1E

To determine

(a)

To rank: the given combinations in the order of preference.

Expert Solution

Explanation of Solution

1^s^t preference is "I" as both goods are more.

2ⁿ^d preference is F and H, as 5 goods in total for each combination.

3^r^d preference is C, E and G, as 4 goods in each combination.

4^t^h preference is B and D as 3 goods in total for each combination.

5^t^h preference is A as lowest combination of goods is given.

To determine

(b)

Combinations which cannot be ranked along with the reason.

Expert Solution

Explanation of Solution

2ⁿ^d preference: F and H, 5 goods are given for each combination.

3^r^d preference: C, E and G, 4 goods are given for each combination.

4^t^h preference: B and D, 3 goods are given for each combination.

A consumer is indifferent for the respective combinations in each preference as there is no information given about price and utility.

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Students have asked these similar questions

Muoki says, “I’d rather see an action movie than a comedy, and I’d rather see a comedy than a foreign film. But given the choice, I think I’d rather see a foreign film than an action movie. Which of these statements about individual preferences is violated?A. Muoki’s preference ordering is completeB. Muoki’s indifference curves are convex to the originC. Muoki’s indifference curves are negatively slopedD. Muoki’s preferences are transitive

Lorenzo lives on x and y alone. His utility function is U(x, y) = min{3x + 4y, 7y}. The prices of both goods are positive. He will Question options: never buy more x than y. buy equal amounts of the two goods. always buy more y than x. always buy more x than y. More than one of the above is true. What is the correct answer to this and why?

True or false. Maximizing choices occur when combinations of two goods are made such that they are affordable and achieve the highest indifference curve (i.e. the highest utility).

Answer 2

Question

Chapter 21A, Problem 1E

To determine

(a)

To rank: the given combinations in the order of preference.

Expert Solution

Explanation of Solution

1^s^t preference is "I" as both goods are more.

2ⁿ^d preference is F and H, as 5 goods in total for each combination.

3^r^d preference is C, E and G, as 4 goods in each combination.

4^t^h preference is B and D as 3 goods in total for each combination.

5^t^h preference is A as lowest combination of goods is given.

To determine

(b)

Combinations which cannot be ranked along with the reason.

Expert Solution

Explanation of Solution

2ⁿ^d preference: F and H, 5 goods are given for each combination.

3^r^d preference: C, E and G, 4 goods are given for each combination.

4^t^h preference: B and D, 3 goods are given for each combination.

A consumer is indifferent for the respective combinations in each preference as there is no information given about price and utility.

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Answer 3

Question

Chapter 21A, Problem 1E

To determine

(a)

To rank: the given combinations in the order of preference.

Expert Solution

Explanation of Solution

1^s^t preference is "I" as both goods are more.

2ⁿ^d preference is F and H, as 5 goods in total for each combination.

3^r^d preference is C, E and G, as 4 goods in each combination.

4^t^h preference is B and D as 3 goods in total for each combination.

5^t^h preference is A as lowest combination of goods is given.

To determine

(b)

Combinations which cannot be ranked along with the reason.

Expert Solution

Explanation of Solution

2ⁿ^d preference: F and H, 5 goods are given for each combination.

3^r^d preference: C, E and G, 4 goods are given for each combination.

4^t^h preference: B and D, 3 goods are given for each combination.

A consumer is indifferent for the respective combinations in each preference as there is no information given about price and utility.

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Answer 4

Question

Chapter 21A, Problem 1E

To determine

(a)

To rank: the given combinations in the order of preference.

Expert Solution

Explanation of Solution

1^s^t preference is "I" as both goods are more.

2ⁿ^d preference is F and H, as 5 goods in total for each combination.

3^r^d preference is C, E and G, as 4 goods in each combination.

4^t^h preference is B and D as 3 goods in total for each combination.

5^t^h preference is A as lowest combination of goods is given.

To determine

(b)

Combinations which cannot be ranked along with the reason.

Expert Solution

Explanation of Solution

2ⁿ^d preference: F and H, 5 goods are given for each combination.

3^r^d preference: C, E and G, 4 goods are given for each combination.

4^t^h preference: B and D, 3 goods are given for each combination.

A consumer is indifferent for the respective combinations in each preference as there is no information given about price and utility.

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Answer 5

Chapter 21A, Problem 1E

To determine

(a)

To rank: the given combinations in the order of preference.

Expert Solution

Explanation of Solution

1^s^t preference is "I" as both goods are more.

2ⁿ^d preference is F and H, as 5 goods in total for each combination.

3^r^d preference is C, E and G, as 4 goods in each combination.

4^t^h preference is B and D as 3 goods in total for each combination.

5^t^h preference is A as lowest combination of goods is given.

To determine

(b)

Combinations which cannot be ranked along with the reason.

Expert Solution

Explanation of Solution

2ⁿ^d preference: F and H, 5 goods are given for each combination.

3^r^d preference: C, E and G, 4 goods are given for each combination.

4^t^h preference: B and D, 3 goods are given for each combination.

A consumer is indifferent for the respective combinations in each preference as there is no information given about price and utility.

Answer 6

Chapter 21A, Problem 1E

To determine

(a)

To rank: the given combinations in the order of preference.

Expert Solution

Explanation of Solution

1^s^t preference is "I" as both goods are more.

2ⁿ^d preference is F and H, as 5 goods in total for each combination.

3^r^d preference is C, E and G, as 4 goods in each combination.

4^t^h preference is B and D as 3 goods in total for each combination.

5^t^h preference is A as lowest combination of goods is given.

Answer 7

Chapter 21A, Problem 1E

To determine

(a)

To rank: the given combinations in the order of preference.

Answer 8

Expert Solution

Explanation of Solution

1^s^t preference is "I" as both goods are more.

2ⁿ^d preference is F and H, as 5 goods in total for each combination.

3^r^d preference is C, E and G, as 4 goods in each combination.

4^t^h preference is B and D as 3 goods in total for each combination.

5^t^h preference is A as lowest combination of goods is given.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

(b)

Combinations which cannot be ranked along with the reason.

Expert Solution

Explanation of Solution

2ⁿ^d preference: F and H, 5 goods are given for each combination.

3^r^d preference: C, E and G, 4 goods are given for each combination.

4^t^h preference: B and D, 3 goods are given for each combination.

A consumer is indifferent for the respective combinations in each preference as there is no information given about price and utility.

Answer 13

To determine

(b)

Combinations which cannot be ranked along with the reason.

Answer 14

Expert Solution

Explanation of Solution

2ⁿ^d preference: F and H, 5 goods are given for each combination.

3^r^d preference: C, E and G, 4 goods are given for each combination.

4^t^h preference: B and D, 3 goods are given for each combination.

A consumer is indifferent for the respective combinations in each preference as there is no information given about price and utility.

Answer 15

Expert Solution

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

Ch. 21A - Prob. 1E Ch. 21A - Prob. 2E Ch. 21A - Prob. 3E

(a) To rank: the given combinations in the order of preference.

(a) To rank: the given combinations in the order of preference.

Explanation of Solution

(b) Combinations which cannot be ranked along with the reason.

Explanation of Solution

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Chapter 21A Solutions

(a)

To rank: the given combinations in the order of preference.

(b)

Combinations which cannot be ranked along with the reason.