Homework Answers
Q. 14
Downward sloping and convex to the origin - D. The consumer views the two goods are imperfect substitutes
Downward sloping straight lines - C. The consumer views the two goods are perfect substitutes.
L-shaped - B. The cosnuemr views the two goods are perfect complements.
Upward sloping and concave to the origin - A. Implausible! These don't exist.
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QUESTION 14 Match the shape of the indifference curve for bundles of goods with its associated...
QUESTION 31 When you observe downward sloping, convex indifference curves, what do you automatically know? That...
QUESTION 31 When you observe downward sloping, convex indifference curves, what do you automatically know? That the MRS in absolute value is diminishing. That the utility function is generally written as U(x,y) = ax + by, where a and b are positive constants. That the consumer views the two goods as imperfect substitutes. That the utility function is generally written as U(X,Y) = minax,by), where a and b are positive constants. That the utility function is generally written as U(X,Y)...
Question 16 1 pts A typical indifference curve is negatively sloped because: as we consume more...
Question 16 1 pts A typical indifference curve is negatively sloped because: as we consume more of one good, we are willing to give up the consumption of another good without changing our utility higher indifference curves represent higher levels of utility higher indifference curves represent lower levels of utility we assume that a consumer's income is constant Question 17 1 pts A typical indifference curve: O is convex to the origin (bowed in) has a constant slope is concave...
QUESTION 30 When you observe downward sloping straight line indifference curves, what do you automatically know?...
QUESTION 30 When you observe downward sloping straight line indifference curves, what do you automatically know? That the MRS is constant. That the consumer views the two goods as perfect substitutes. DODO That the consumer views the two goods as imperfect substitutes. That the consumer views the two goods as perfect complements That the utility function is generally written as U(X ) = ax + by, where a and b are positive constants. That the utility function is generally written...
1. True or False, and explain briefly. 1) The assumption that more is better implies that...
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...
Please help with these questions Question 21 0.8 pts exist(s) when a consumer is completely indifferent...
Please help with these questions
Question 21 0.8 pts exist(s) when a consumer is completely indifferent between two goods O Imperfect selection Improper preference Perfect complements Perfect substitutes O Perfect indifference Question 22 0.8 pts The concept of diminishing marginal utility means that a graph representing total utility will be impossible to generalize without a data set. upward-sloping. O upward-facing concave. Odownward-sloping. downward-facing concave Question 23 0.8 pts If a combination of items exists to the right of the budget...
4.1. Suppose you have two distinct bundles X and Y, and, for you, X is strictly...
4.1. Suppose you have two distinct bundles X and Y, and, for you, X is strictly better than Y. Explain briefly using a graph and words why the two indifference curves associated to two bundles X and Y I(X) and I(Y) cannot cross each other. 4.2. Explain using a graph and words why if the assumption of monotonic preferences (aka "more-is- better") implies that indifference curves are not thick and they must be downward sloped. 4.3. Provide three examples of...
Question 4: Answer the following questions regarding preferences: 4.1. Suppose you have two distinct bundles X...
Question 4: Answer the following questions regarding preferences: 4.1. Suppose you have two distinct bundles X and Y, and, for you, X is strictly better than Y. Explain briefly using a graph and words why the two indifference curves associated to two bundlesX and Y --I(X) and I(Y cannot cross each other. 4.2. Explain using a graph and words why if the assumption of monotonic preferences (aka "more- is-better" implies that indifference curves are not thick and they must be...
Question 6: Draw an indifference curve and its weakly preferred set for two goods that exhibit...
Question 6: Draw an indifference curve and its weakly preferred set for two goods that exhibit following preferences: 1. monotonic and convex preferences 2. monotonic and concave preferences 3. non-monotonic preferences
Draw an indifference curve and its weakly preferred set for two goods that exhibit following preferences:...
Draw an indifference curve and its weakly preferred set for two goods that exhibit following preferences: 1. monotonic and convex preferences 2. monotonic and concave preference:s 3. non-monotonic preferences
Question 9 1 pts Logan Roy is spending all his money income by buying mineral water...
Question 9 1 pts Logan Roy is spending all his money income by buying mineral water and popcorn. At his current consumption level, the marginal utility of mineral water is 70 and the marginal utility of popcorn is 60. The price of a bottle of mineral water is $2.00 and the price of a box of popcorn is $1.50. The utility-maximizing rule suggests that Logan should: O Increase consumption of popcorn and increase consumption of mineral water Decrease consumption of...
QUESTION 31 When you observe downward sloping, convex indifference curves, what do you automatically know? That the MRS in absolute value is diminishing. That the utility function is generally written as U(x,y) = ax + by, where a and b are positive constants. That the consumer views the two goods as imperfect substitutes. That the utility function is generally written as U(X,Y) = minax,by), where a and b are positive constants. That the utility function is generally written as U(X,Y)...
Question 16 1 pts A typical indifference curve is negatively sloped because: as we consume more of one good, we are willing to give up the consumption of another good without changing our utility higher indifference curves represent higher levels of utility higher indifference curves represent lower levels of utility we assume that a consumer's income is constant Question 17 1 pts A typical indifference curve: O is convex to the origin (bowed in) has a constant slope is concave...
QUESTION 30 When you observe downward sloping straight line indifference curves, what do you automatically know? That the MRS is constant. That the consumer views the two goods as perfect substitutes. DODO That the consumer views the two goods as imperfect substitutes. That the consumer views the two goods as perfect complements That the utility function is generally written as U(X ) = ax + by, where a and b are positive constants. That the utility function is generally written...
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...
Please help with these questions
Question 21 0.8 pts exist(s) when a consumer is completely indifferent between two goods O Imperfect selection Improper preference Perfect complements Perfect substitutes O Perfect indifference Question 22 0.8 pts The concept of diminishing marginal utility means that a graph representing total utility will be impossible to generalize without a data set. upward-sloping. O upward-facing concave. Odownward-sloping. downward-facing concave Question 23 0.8 pts If a combination of items exists to the right of the budget...
4.1. Suppose you have two distinct bundles X and Y, and, for you, X is strictly better than Y. Explain briefly using a graph and words why the two indifference curves associated to two bundles X and Y I(X) and I(Y) cannot cross each other. 4.2. Explain using a graph and words why if the assumption of monotonic preferences (aka "more-is- better") implies that indifference curves are not thick and they must be downward sloped. 4.3. Provide three examples of...
Question 4: Answer the following questions regarding preferences: 4.1. Suppose you have two distinct bundles X and Y, and, for you, X is strictly better than Y. Explain briefly using a graph and words why the two indifference curves associated to two bundlesX and Y --I(X) and I(Y cannot cross each other. 4.2. Explain using a graph and words why if the assumption of monotonic preferences (aka "more- is-better" implies that indifference curves are not thick and they must be...
Question 6: Draw an indifference curve and its weakly preferred set for two goods that exhibit following preferences: 1. monotonic and convex preferences 2. monotonic and concave preferences 3. non-monotonic preferences
Draw an indifference curve and its weakly preferred set for two goods that exhibit following preferences: 1. monotonic and convex preferences 2. monotonic and concave preference:s 3. non-monotonic preferences
Question 9 1 pts Logan Roy is spending all his money income by buying mineral water and popcorn. At his current consumption level, the marginal utility of mineral water is 70 and the marginal utility of popcorn is 60. The price of a bottle of mineral water is $2.00 and the price of a box of popcorn is $1.50. The utility-maximizing rule suggests that Logan should: O Increase consumption of popcorn and increase consumption of mineral water Decrease consumption of...
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