Microeconomic Theory
12th Edition
ISBN: 9781337517942
Author: NICHOLSON
Publisher: Cengage
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Question
Chapter 3, Problem 3.4P
a
To determine
To plot: Graphical representation of the given function and to show convexity of IC.
b)
To determine
To plot: Graphical representation of the given function and to show convexity of IC.
c)
To determine
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- Ambrose has indifference curves with the equation x2 = constant 4x^1/2, where larger constants correspond to higher indifference curves. If good 1 is drawn on the horizontal axis and good 2 on the vertical axis, what is the slope of Ambrose's indifference curve when his consumption bundle is (16, 17)?arrow_forwardTrue or false. Indifference curves are a graphical way to illustrate a person's tastes and preferences towards two goods.arrow_forwardTrue or false. Assuming utility positively depends on two goods, indifference curves can be upward sloping. True Falsearrow_forward
- Which of the FF. statements is correct regarding the preference of the consumers when the income of the consumer can only be spent between apples and oranges? Assume that apples are written on the vertical axis while oranges are written on the horizontal axis A. when the consumer has few oranges, he is willing to trade more apple to get another orange B. when the consumer has so many oranges already, he will only exchange less apples for an orange C. the declining slope of the indifference curve shows the marginal value of oranges is declining D. all are correct E. none is correctarrow_forwardWe claimed in the text that if preferences were monotonic, then a diag-onal line through the origin would intersect each indifference curve exactly once. Can you prove this rigorously? (Hint: what would happen if itintersected some indifference curve twice?)arrow_forwardShow that an indifference curve Cannot be thick (cannot have positive thickness, rather than being just a line). Cannot bend backward (forming a "hook" at the end). Cannot intersect another indifference curve.arrow_forward
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