Draw indifference curves to represent the following consumer preferences. For each set of preferences draw two indifference curves U1 and U2 such like, U1 > U2
Draw indifference curves to represent the following consumer preferences. For each set of preferences draw two...
Draw indifference curves to represent the following types of consumer preferences (put Apples on the x-axis and Oranges on the y-axis) Make sure to include arrows to indicate direction of preference. (Hint: Start with a bundle (say 10 units of each), and think about other bundles that give the consumer the same utility.) a) I like apples, but dislike Oranges. b) I dislike Apples, and dislike Oranges. c) I neither like nor dislike Apples, but dislike Oranges. d) I like...
Draw indifference curves to represent the following types of consumer preferences (put good-x on the x-axis and good-y on the y-axis). Make sure to include arrows to indicate direction of preference. (Hint: Start with a bun- dle (say 10 units of each), and think about other bundles that give the consumer the same utility.) a) A situation where the tangency condition is always satised. b) A situation with a basket that has positive amounts of both goods that satises the...
Draw some indifference curves to represent the following preferences.(Please draw at least two indifference curves in one graph and specify which indifference curve has bundles that are more preferable) (a) [2 points] Alex likes both cake and smoothie. For both the commodity, he thinks that the more, the better. And he thinks a piece of cake is as good as a glass of smoothie.(b)Bobby likes chocolate but he doesn’t care about ice cream. And he thinks that the more chocolate...
For each of the following utility functions, draw an indifference map with 3 indifference curves. Be sure to label your axes, and label your curves as IC1, IC2, and IC3, where U1 < U2 < U3. (5 points each) a. ?(?, ?) = 3? + 5? b. ?(?, ?) = ? 2 + ? 2 c. ?(?, ?) = −? 2 + ln(?) d. ?(?, ?) = min(3?, 5?)
#2 b 2. Draw indifference curves that represent the follow- ing individuals' preferences for hamburgers and soft drinks. Indicate the direction in which the individuals' satisfaction (or utility) is increasing. a. Joe has convex indifference curves and dislikes both hamburgers and soft drinks. b. Jane loves hamburgers and dislikes soft drinks. If she is served a soft drink, she will pour it down the drain rather than drink it. c. Bob loves hamburgers and dislikes soft drinks. If he is...
Can I please have help with parts 4-6? Thank you! Question 3: Sandwiches (30 points) Anabelle does not like to mix peanut butter and jelly in the same sandwich. However, she will consume them separately; for her, a sandwich with 1 spoon of peanut butter is exactly the same as a sandwich with 2 spoons of jelly. Anabelle has an income of m = 50, and the prices per spoonful of peanut butter and jelly are PPB 5 and pj=1....
Exercises ferences. Consider two of her indifference Assume a consumer has quasilinear preferences. Consi curves, corresponding to u . distance between the two indifference in might be onding to u( 12) = 5 and ( 12) = 10. Show that the ve two indifference curves remains constant, no matter what maneatind variation Animalanti
Jim grows peppers and tulips in his garden. The given indifference curves represent Jim's preferences over peppers and tulips. Jim has $120 of income to spend on planting his garden. The price of a pepper plant $4 and the price of a bag of tulip bulbs is $6. Use the line drawing tool to draw Jim's budget constraint and label it BC. Then use the double drop line to identify the number of bags of tulip and pepper plants Jim...
9. Explain why two indifference curves that represent distinct levels of preference (or utility) can not cross and how this would violate the assumption that preferences are transitive. Provide a sketch to support your answer. homo economicus agent's preferences can be represented using a Cobb-Douglas utility functionn The agent's "taste for good 1 relative to good 2 depends on a single parameter, a. The larger the value of a, the more good 2 she is willing to give up to...
.Use separate graphs to sketch two indifference curves for people with each of the following utility functions: U(x, y) = x + 2y. U(x, y) = min{x,2y}. What type of preferences are represented by a utility function of the form U(x, y) = square root of x+y? What about the utility function V(x,y) = 13x+13y? Consider the utility function u(x,y) = ?^2 ?^3. What kind of preferences does it represent? Is the function v(x,y) = ?^4 ?^5 a monotonic transformation...