Homework Answers
Two indifference curves that represents distinct legel of utility can not cross each other, because if they do cross each other like in the figure, X, Y and Z all would have to be indifferent to each other and therefore they can not lie on the distinct indifference curves.
See the figure, X is indifferent to Z since they both lie on same indifference curve, Z is indifferent to Y, they lie on same indifference curve. X is indifferent to Z, Z is indifferent to Y, transitivity says that X must be indifferent to Y. But here X is preferred over Y since it lies on higher indifference curve. Therefore, it voilates transitivity.
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9. Explain why two indifference curves that represent distinct levels of preference (or utility) can not...
)For each of the following statements, determine whether it is true or false? Briefly explain. (24...
)For each of the following statements, determine whether it is true or false? Briefly explain. (24 pts (a) If a con b) Assumin s preferences are transitive then they must be complete as well. False. sumer' g there are only two goods, if one good is a bad and the other is a good, then the indifference curves are upward sloping. c) can intersect only if the goods are perfect complements. Indifference curves ) If two utility functions u(-) and...
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2- Lisa's preference between good X and a composite good of everything else (Z) can be...
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1. True or False, and explain briefly. 1) The assumption that more is better implies that...
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Consider an exchange economy with two consumers, A and B, who can consume only two goods....
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Juestons lemprod.pea ng.comapvprinten-us/econ Indifference curves are downward sloping because of the assumption of...
Juestons lemprod.pea ng.comapvprinten-us/econ Indifference curves are downward sloping because of the assumption of A. transitivity. B. completeness. C. more is better O D. All of the above. 33. Convexity of indifference curves implies that consumers are willing to O A. settle for less of both "x" and "y O B. give up more "y to get an extra x the more "x" they have. O C. give up more "y" to get an extra "x" the less "x" they have....
can someone explain this step by step? especially don't understand how they got m/px? why we...
can someone explain this step
by step? especially don't understand how they got m/px? why we
can't use the lagrange. and not sure how they drew the graph for
this question. SOMEONE PLEASE HELP MIDTERM SOON AND WILL GIVE BIG
THUMBS UP!!!! confused where 4x20+5x0 is coming from
Problem 4 Eric's preferences for goods x and y are represented by the following utility function: U(X,Y) = 4X +5Y. The price of good X is px = 2 and the price...
7. We know that well-defined preferences over two goods have the properties that (i) indifference curves...
7. We know that well-defined preferences over two goods have the properties that (i) indifference curves are negatively sloped, and (ii) that indifference curves are convex (so that chords between two points on the indifference curve lie in the set {(c,y) such that (c,y) (co, yo)) when (co,yo) is a point on the indifference curve). Suppose that good y is "clean air" and good c is consumption of all other goods This problem gets you to determine what these two...
)For each of the following statements, determine whether it is true or false? Briefly explain. (24 pts (a) If a con b) Assumin s preferences are transitive then they must be complete as well. False. sumer' g there are only two goods, if one good is a bad and the other is a good, then the indifference curves are upward sloping. c) can intersect only if the goods are perfect complements. Indifference curves ) If two utility functions u(-) and...
2- Lisa's preference between good X and a composite good of everything else (Z) can be shown by a Cobb-Douglas function as below U(X,Z) = xaz1-a where 0 < a < 1. We can show that the marginal utility of each good is 1-a MUx = a (5)" MU; = (1 –a) (?) a. *Assume a = 0.25 and use an X-Z graph. Sketch the indifference curves which pass through combinations (2,3) and (4,6). A combination (x,z) is a bundle...
1. True or False, and explain briefly. 1) The assumption that more is better implies that the indifference curves are upward sloping 2) Convexity of indifference curves implies that consumers are willing to give up more to get an extra the more they have 3) Consider the following three bundles. Bundle Good Goody If Bundles A and B are on the same indifference curve, preferences satisfy all the usual assumptions introduced in the lecture, Bundle Cis preferred to Bundle A...
Juestons lemprod.pea ng.comapvprinten-us/econ Indifference curves are downward sloping because of the assumption of A. transitivity. B. completeness. C. more is better O D. All of the above. 33. Convexity of indifference curves implies that consumers are willing to O A. settle for less of both "x" and "y O B. give up more "y to get an extra x the more "x" they have. O C. give up more "y" to get an extra "x" the less "x" they have....
can someone explain this step
by step? especially don't understand how they got m/px? why we
can't use the lagrange. and not sure how they drew the graph for
this question. SOMEONE PLEASE HELP MIDTERM SOON AND WILL GIVE BIG
THUMBS UP!!!! confused where 4x20+5x0 is coming from
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