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 Apples, but neither like nor dislike Oranges.
e) I like Apples and Oranges, but I only want 2 Apples for every 5 Oranges.
f) I like both Apples and Oranges, and always get the same additional satisfaction from 2 Apples as I do from 3 Oranges
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Draw indifference curves to represent the following types of consumer preferences (put Apples on the x-axis...
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 indifference curves to represent the following consumer preferences. For each set of preferences draw two indifference curves U1 and U2 such like, U1 > U2 e) I like peanut butter and jelly, and have a diminishing marginal rate of substitution. f) I like to consume exactly 5 ounces of peanut butter and 5 ounces of jelly. The further away I get from this point, in any direction, the less happy I am.
#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...
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...
Imagine a representative consumer, whose utility for apples (X) and all other goods (Y) can be represented in a Cobb-Douglas form. 1) Please graphically represent consumer indifference curves, given prices Px and Py and the budget constraint M. 2) What will happen to consumer utility and optimal bundle if consumer income (budget) increases and apples are a necessity good? Please show graphically and explain the intuition. 3) How would the Engel curve look like for point #2?
Question 2. Consider the following 8 bundles of goods x and y: A = (8,4) B = (5,6) C = (5,9) D = (10,3) E =(1,4) F =(6,5) G=(2,8) H =(7,8) (a) Come up with an example of a utility function that will produce the following order of preference for the bundles, where H is most preferred, A and G are equally preferred, and E is least preferred. H , C , B , F , A = G ,...
3. Indifference curves and preferences Alex likes both soda and milk. Assume that the "more is better" principle applies to Alex; that is, he would always prefer to consume more of either good, holding the consumption of the other good constant. The points on Figure 1 represent combinations of milk and soda that Alex might choose to consume. Figure 2 shows the same points as Figure 1, but it also shows some of Alex's indifference curves: 11, 12, and 13...
2. Sandra has the following preferences over cookies (x) and tea (y) (x,y) = min(3x, 2y) (a) Graph Sandra's indifference curves that go through points (2,3), (4,6), (6,9), (8,12). Be sure to label the axis and the utility levels of the indifference curves. (Hint: You should be graphing 4 indifference curves) (10 points) (b) On the same graph above, draw a budget constraint where pe=2.py=2 m = 20. (Note, careful attention to precise graphing here will help in partc.) (4...
2. Consider the following four consumers (C1,C2,C3,C4) with the following utility functions: Consumer Utility Function C1 u(x,y) = 2x+2y C2 u(x,y) = x^3/4y^1/4 C3 u(x,y) = min(x,y) C4 u(x,y) = min(4x,3y) On the appropriate graph, draw each consumer’s indifference curves through the following points: (2,2), (4,4), (6,6) and (8,8), AND label the utility level of each curve. Hint: Each grid should have 4 curves on it representing the same preferences but with different utility levels. 3. In the following parts,...
needs to be solved asap please i am attaching a full photo please go thoroughly through it and solve it L. The graph below shows a range of consumption bundles comprising Meals and Education. Meals 4 Education Which of the following preference relations are feasible? In case they are NOT feasible, state the assumption violated in each case. (2 points each) 1. DPA 2. CIA 3. DPB,BI E and DIE 4. DP BBP A and DPA II. Draw the indifference...