33. Along an indifference curve a. the MRS is constant b. the ratio of the marginal...

Question

Question

Answer 1

Answer #1

utlity in Cons tant Curve only indi Herence A Long an MRS natio marginal ulty Puce nalin Lenuurptiom bauket all there au Func

Answer 2

Similar Homework Help Questions

what is the marginal rate of substitution (MRS)? a) The ratio of the amounts of the...

what is the marginal rate of substitution (MRS)? a) The ratio of the amounts of the two goods at a point on the indifference curve. b) The amount of one good that the consumers is willing to trade for one unit of the other. c) The change in the consumers utility when one good is substituted for another. d) The slope of the indifference curve.
Along an indifference curve is constant

Along an indifference curve is constant
Question 31 2 pts Refer to the following indifference curve. The marginal rate of substitution (MRS)...

Question 31 2 pts Refer to the following indifference curve. The marginal rate of substitution (MRS) between points A and B is Slices of pizza A (1,5) 5 4+2 1-1 B (2,3) 3 +1 ! C (3,2) 2 -4 D (7,1) 1 Indifference curve 0 1 2 3 4 5 6 7 8 9 10 Cans of Pepsi O 1/2 -2 0-1/2 0 -1 O 1

. Given that the slope of an indifference curve at any point is the “marginal rate...

. 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...

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?
As a consumer moves up along an indifference curve, the consumer's ________. A. real income decreases...

As a consumer moves up along an indifference curve, the consumer's ________. A. real income decreases B. marginal rate of substitution diminishes C. marginal rate of substitution does not change D. marginal rate of substitution increases

A consumer buys only two goods, X and Y. a. If the MRS between X and...

A consumer buys only two goods, X and Y. a. If the MRS between X and Y is 4 and the marginal utility of X is 20, what is the marginal utility of Y? b. If the MRS between X and Y is 3 and the marginal utility of Y is 6, what is the marginal utility of X? c. If a consumer moves downward along an indifference curve, what happens to the marginal utilities of X and Y? What...
The point where the indifference curve is tangent to the budget line A. is a point...

The point where the indifference curve is tangent to the budget line A. is a point on consumer's demand curve. B. is the best affordable point. C. is where the marginal rate of substitution exceeds the relative price by as much as possible. D. All of the above answers are correct.
Given the indifference curve shown to the right: a. What is the marginal rate of substitution...

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?

A) Suppose U = min[X, 3Y] and I=12, Px=1 and Py=5. Find X* and Y*. B) Draw an indifference curve and a normal linear budget constraint such that there is a tangency point (where MRS= price ratio) that...

A) Suppose U = min[X, 3Y] and I=12, Px=1 and Py=5. Find X* and Y*. B) Draw an indifference curve and a normal linear budget constraint such that there is a tangency point (where MRS= price ratio) that is not the optimal bundle. C) Suppose U=X∙Y5. Find X* and Y*. D) Suppose U = 5∙X + 2∙Y and I=12, Px=2 and Py=1. Find X* and Y*.