if an individuals indifference curve map does not obey the assumption of a diminishing MRS, then...
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an individuals indifference curve map does not obey the assumption
of a diminishing MRS, then...
Graph an indifference curve (IC) for the following utility functions and determine whether they obey the...
Graph an indifference curve (IC) for the following utility
functions and determine whether they obey the assumption of
diminishing MRS.
U(x, y) = In x + In y
Which of the following is a true characteristic of an indifference curve map? Moving northeast to...
Which of the following is a true characteristic of an indifference curve map? Moving northeast to a new indifference curve will increase utility. Indifference curves can cross.
True, False, Uncertain or Not enough information: A given budget constraint has only one indifference curve...
True, False, Uncertain or Not enough information: A given budget constraint has only one indifference curve that is tangent for a specific set of prices. However, there may be numerous indifference curves that intersect the same budget constraint. Explain in terms of relative prices, opportunity costs and the marginal rate of substitution.
Indifference Curves and the Budget Constraints: True, False, Uncertain or Not enough information: A given budget...
Indifference Curves and the Budget Constraints: True, False, Uncertain or Not enough information: A given budget constraint has only one indifference curve that is tangent for a specific set of prices however, there may be numerous indifference curves that intersect the same budget constraint. Explain in terms of relative prices, opportunity cost and marginal rate of substitution.
please answer all questions 2. Draw the graph of an indifference curve map for the utility...
please answer all questions
2. Draw the graph of an indifference curve map for the utility function U(X,Y)= XY. Put good X on X-axis and good Y on Y-axis. Draw at least 3 indifference curves and label the utility level for each indifference curve. Explain why or why not do the indifference curves cross each other on the map.
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...
Consider the utility function U(x,y) = 3x+y, with MUx=3 and MUy=1 a) Is the assumption that...
Consider the utility function U(x,y) = 3x+y, with MUx=3 and MUy=1 a) Is the assumption that more is better satisfied for both goods b) Does the marginal utility of x diminish, remain constant, or increase as the consumer buys more x? Explain. c)What is MRS x,y? d) Is MRS x,y diminishing, constant, or increasing as the consumer substitutes x for y along an indifference curve? e) On a graph with x on the horizontal axis and y on the vertical...
Consider the utility function U(x,y) = 3x+y, with MUx=3 and MUy=1 a) Is the assumption that...
Consider the utility function U(x,y) = 3x+y, with MUx=3 and MUy=1 a) Is the assumption that more is better satisfied for both goods b) Does the marginal utility of x diminish, remain constant, or increase as the consumer buys more x? Explain. c)What is MRS x,y? d) Is MRS x,y diminishing, constant, or increasing as the consumer substitutes x for y along an indifference curve? e) On a graph with x on the horizontal axis and y on the vertical...
What is an indifference curve and how does a preference map show preferences? Peaches (number per month) An indifferenc...
What is an indifference curve and how does a preference map show preferences? Peaches (number per month) An indifference curve shows_ . A preference map shows that a person prefers combinations A combinations of goods that a consumer can afford; he cannot afford over the combinations he can afford O B. combinations of goods that are available; on lower indifference curves to combinations on higher indifference curves O C. combinations of goods among which a consumer is indifferent; that are...
+4Vy Consider the utility function (x, y) - Vx a) Is the assumption that more is...
+4Vy Consider the utility function (x, y) - Vx a) Is the assumption that more is better satisfied for both goods? Explain your answer. (0.5 marks) b) Does the marginal utility of x diminish, remain constant, or increase as the consumer buys more x? Explain your answer. (0.5 marks) c) What is MRS, y? (0.25 marks) d) Is MRS y diminishing, constant, or increasing as the consumer substitutes x for y along an indifference curve? Explain your answer. (0.75 marks)
Graph an indifference curve (IC) for the following utility
functions and determine whether they obey the assumption of
diminishing MRS.
U(x, y) = In x + In y
please answer all questions
2. Draw the graph of an indifference curve map for the utility function U(X,Y)= XY. Put good X on X-axis and good Y on Y-axis. Draw at least 3 indifference curves and label the utility level for each indifference curve. Explain why or why not do the indifference curves cross each other on the map.
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...
What is an indifference curve and how does a preference map show preferences? Peaches (number per month) An indifference curve shows_ . A preference map shows that a person prefers combinations A combinations of goods that a consumer can afford; he cannot afford over the combinations he can afford O B. combinations of goods that are available; on lower indifference curves to combinations on higher indifference curves O C. combinations of goods among which a consumer is indifferent; that are...
+4Vy Consider the utility function (x, y) - Vx a) Is the assumption that more is better satisfied for both goods? Explain your answer. (0.5 marks) b) Does the marginal utility of x diminish, remain constant, or increase as the consumer buys more x? Explain your answer. (0.5 marks) c) What is MRS, y? (0.25 marks) d) Is MRS y diminishing, constant, or increasing as the consumer substitutes x for y along an indifference curve? Explain your answer. (0.75 marks)
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