An indifference curve shows different combinations of two goods that gives the consumer equal level of satisfaction which makes him indifferent of the points on the IC. A higher indifference curve gives higher level of satisfaction and a lower indifference curve gives lower level of satisfaction. In the given graph the highest indifference curve is U3 which gives the highest level of satisfaction to the consumer.
Ans: U3.
Indifference Curves Sodas arded Cookies Which of the following indifference curves is the most preferred? Multiple...
How would the prices of sodas and cookies decreasing affect utility maximization? Multiple Choice Your indifference curve would shift outward (to the right) and you could consume more. Your budget line would shift outward to the right) and you could consume at a higher indifference curve. Your budget line would not change but your indifference curve would get steeper to consume more of both goods. Your indifference curves would shift inward to the left) and you would consume less of...
Which of the following statements pertaining to preferred stock is not correct? Multiple Choice Preferred stock may have an adjustable rate which pays a dividend that is adjusted, usually on a quarterly basis O Preferred stock dividends are contractual obligations that must be paid in potable years. Most preferred stock issues are nonparticipating, meaning that the shareholders are ented to receive only dividends based on the stated vidend rate. Preferred shareholders are given pretorence with respect to both duidend distributions...
Which of the following will lead to a change in the slopes of your indifference curves between gasoline and movie rentals? both a change in the price of either good and a change in income will change the slopes of your indifference curves only a change in your income a change in your preferences for either of the two goods only a change in the price of either of the two goods
For which of the following utility functions will the corresponding indifference curves slope downward at an increasing rate? a. ?= -X1/2 +Y2 b. ? = −?2 − ?2 c. ? = ?1/3Y2/3 d. ? = ?2/X1/2
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?)
Consider the following Phillips curves. Which of the following is most likely to happen in the short run because of an expansionary fiscal policy? Wagenation (6) LONO RUN PHILLIPS CURVE 5% SRPC 2 ON SRPC: U2 US Unemployment Rate() Select one: 0 a. A move from A to B O b. A move from B to A O c. A move from B to C d. A move from A to C ENG
Indifference curves do not cross because if you prefer steak over salmon and salmon over chicken then you also prefer Multiple Choice chicken over steak. steak over salmon. chicken over salmon. steak over chicken.
1. Which of the following is not a property of standard indifference curves in a leisure-consumption model? A. Indifference curves tend to be downward sloping. B. Higher indifference curves (to the northeast) indicate higher levels of utility. C. Indifference curves tend to be convex to the origin. D. There is an indifference curve passing through every leisure-consumption bundle. E. Indifference curves intersect one another. 2. What is likely to happen to the labor market equilibrium for firemen as building codes...
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....