Question 31 2 pts Refer to the following indifference curve. The marginal rate of substitution (MRS)...
Question 13 0.8 pts The marginal rate of substitution is obtained from two pointsthe indifference curve O to the left of O along O above and below O to the right of O tangent to 0.8 pts
. Given that the slope of an indifference curve at any point is the “marginal rate of substitution” between Y and X explain/prove that MRS is equal to the ratio of the consumer’s marginal evaluation of good X to his/her marginal evaluation of good Y (i.e. MRS = -MUx/MUy). (2 pts)
2. What's the definition of marginal rate of substitution? What happens to the MRS as you move along a convex indifference curve? A linear indifference curve?
Given the indifference curve shown to the right: a. What is the marginal rate of substitution are you move from point F to point G? b. Would you expect the absolute value of the MRS to be higher lower or the same as you continue to substitute audio CDs for books?
7) a) What is the relationship between marginal rate of substitution (MRS) and the concept of an indifference curve? b) Suppose a consumer's utility function is defined by u(x,y)=3x+y for every x>0 and y0. Calculate a formula for MRS at every combination of x and y. c) Suppose that P,-/ P, and that this consumer has an initial endowment of wealth w=100. Find this individual's utility maximizing demand of x and y. 10 pts
3. An indifference curve is a. the set of all points of consumer equilibrium as the consumer's income changes. b. all combinations of goods X and Y that yield the same total utility. c. all combinations of goods X and Y that yield the same marginal utility. d. the set of all goods that the consumer can afford given her income and the prices of the goods. 4. Which of the following is NOT a property of an indifference curve?...
7. (4 Points) Describe what the marginal rate of substitution of x for Y (MRSxy) to us about a consumer's preferences between the two goods. 8 (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3, 15), the MRSxy = 2. 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility...
can someone help me Question 1 1 pts The Marginal Rate of Substitution is the slope of the indifference curve. O True O False
7. (4 Points) Describe what the marginal rate of substitution of X for Y (MRSxy) telle us about a consumer's preferences between the two goods. 8. (4 Points) Suppose you have preferences over two goods, bottles of wine (good X) and slices of pizza (good Y). Explain what it means that for the bundle A = (3.15), the MRSxy = 2 9. For this question, use the utility function U(X,Y)= XY. (a) (2 Points) What is the marginal utility of...
4. Consider the utility function U(x,y) -Iny (a) Find the marginal rate of substitution, MRS of this function. Interpret the result (b) Find the equation of the indifference curve for this function (c) Compare the marginal utility of x and y. How do you interpret these functions? How might a consumer choose between z and y as she tries to increase utility by, for example, consuming more when their income increases?