Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Add Answer to:
The budget line A. Represents the set of all baskets that give the consumer the same...
3. An indifference curve is a. the set of all points of consumer equilibrium as the...
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?...
Explain why utility maximization subject to the budget constraint implies that the consumer purchases that basket...
Explain why utility maximization subject to the budget constraint implies that the consumer purchases that basket of commodities for which 1. all income is used up. 2. the marginal rate of substitution equals the price ratio. 3. the marginal utilities per dollar of the two goods are equal. If you use a diagram in your answer, make the diagram large and label all curves, axes, and points.
3) (4pts. Consider a consumer who spends all his income on two goods, say 804 that...
3) (4pts. Consider a consumer who spends all his income on two goods, say 804 that good 1 is an inferior good at the current prices and income). If the price and also the income of the consumer doubles, how does his demand for good at all. Explain. all his income on two goods, say good 1 and good 2. Assume ces and income). If the price of both goods double w does his demand for good 1 change, if...
Find the TRUE statement based on following graph 7. 12 10 B-i Uo Tony's Frozen Pizzas...
Find the TRUE statement based on following graph 7. 12 10 B-i Uo Tony's Frozen Pizzas a. All possible indifference curves are shown in the graph b. Given diminishing marginal utility, point B is preferred to point A c. We cannot determine whether consumers prefer point E or point F d. Marginal rate of substitution is diminishing 8. Additional utility obtained from consuming an extra unit of a good is called a. Marginal rate of substitution b. Marginal utility c....
1. When a consumer maximizes utility, which of the following is NOT true? a. The indifference curve is tangent to...
1. When a consumer maximizes utility, which of the following is NOT true? a. The indifference curve is tangent to the budget line b. Marginal utility per dollar is maximized c. The marginal rate of substitution is equal to the relative price d. The marginal utility per dollar spent is equal across all goods
Marginal rate of substitution is _____ a. Increasing because consumer’s indifference curve is bowed outward b....
Marginal rate of substitution is _____ a. Increasing because consumer’s indifference curve is bowed outward b. Diminishing because consumers prefers variety and prefer a balanced consumption c. Increasing because consumers can easily find complementary goods d. Decreasing because consumer’s utility curve is linear
3. The Consumer Price Index (CPI) represents the average price of goods that households consume. Many...
3. The Consumer Price Index (CPI) represents the average price of goods that households consume. Many thousands of goods are included in such an index. Here consumers are repre- sented as buying only food (pizza) and gas as their basket of goods. Below is a representation of the kind of data the Bureau of Economic Analysis (BEA) collects to construct a consumer price index. In the base year, 2008, both the prices of goods purchased and the quantity of goods...
17. Which statement is true? a. Diminishing marginal utility is equivalent to diminishing MRS2 1 → (where MRS2 1 → is de...
17. Which statement is true? a. Diminishing marginal utility is equivalent to diminishing MRS2 1 → (where MRS2 1 → is defined as the marginal rate of substitution of good 2 for good 1, in the usual manner). b. A consumer has diminishing MRS2 1 → if goods 1 and 2 are perfect substitutes. c. If two goods are perfect complements, a consumer will have diminishing MRS2 1 → . d. If a consumer has monotonic and strictly convex preference,...
optimal consumption & budget constraint
Q1. A consumer chooses an optimal consumption point where the A) marginal rate of substitution equals the relative price ratio. B) slope of the indifference curve exceeds the slope of the budget constraint C) ratios of all the marginal utilities are equal D) All of the above are correct. Q2. A budget constraint illustrates the A) prices that a consumer chooses to pay for products he consumes. B) consumption bundles that give a consumer equal satisfaction. C) purchases made by consumers. D) consumption bundles that a consumer can afford
Chapter 7 Vocabulary Name: Match the term with the correct definition Income effect a trying to...
Chapter 7 Vocabulary Name: Match the term with the correct definition Income effect a trying to get the biggest bang for the buck. Utility maximizing rule b as the price of a good drops, consumers have more money to spend on it and other goods Consumer equilibrium The amount of satisfaction gained from consumption of goods and services. d shows the combinations of two items that can be purchased with a limited amount of money. Law of diminishing marginal utility...
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?...
3) (4pts. Consider a consumer who spends all his income on two goods, say 804 that good 1 is an inferior good at the current prices and income). If the price and also the income of the consumer doubles, how does his demand for good at all. Explain. all his income on two goods, say good 1 and good 2. Assume ces and income). If the price of both goods double w does his demand for good 1 change, if...
Find the TRUE statement based on following graph 7. 12 10 B-i Uo Tony's Frozen Pizzas a. All possible indifference curves are shown in the graph b. Given diminishing marginal utility, point B is preferred to point A c. We cannot determine whether consumers prefer point E or point F d. Marginal rate of substitution is diminishing 8. Additional utility obtained from consuming an extra unit of a good is called a. Marginal rate of substitution b. Marginal utility c....
1. When a consumer maximizes utility, which of the following is NOT true? a. The indifference curve is tangent to the budget line b. Marginal utility per dollar is maximized c. The marginal rate of substitution is equal to the relative price d. The marginal utility per dollar spent is equal across all goods
Chapter 7 Vocabulary Name: Match the term with the correct definition Income effect a trying to get the biggest bang for the buck. Utility maximizing rule b as the price of a good drops, consumers have more money to spend on it and other goods Consumer equilibrium The amount of satisfaction gained from consumption of goods and services. d shows the combinations of two items that can be purchased with a limited amount of money. Law of diminishing marginal utility...
Most questions answered within 3 hours.
-
In 1970s and 1980s, molecular biologists discovered that the
hormone testosterone, binds a receptor protein that...
asked 52 minutes ago -
january 1 2010 road catering service purchase a piece of
equipment for 58000 which is expected...
asked 1 hour ago -
Explain Mertons concept of anomie is and what the
modes of adaptation to it are?
asked 2 hours ago -
Jamie is doing a survey at her school about whether the students
feel the cafeteria food...
asked 3 hours ago -
How many liters of 0.669 M KOH will be needed to raise the pH of
0.339...
asked 5 hours ago -
A liquid of density 1270 kg/m 3 flows steadily through a pipe of
varying diameter and...
asked 6 hours ago -
Questions: What should the American executive do?
'A visiting American executive finds that a foreign subsidiary...
asked 5 hours ago -
Activity based costing was introduced as an alternative to
absorption costing.
1. Discuss using illustration the...
asked 6 hours ago -
1. You own shares of Crane DVD Company and are interested in
selling them. With so...
asked 6 hours ago -
How many grams of He are necessary to fill a balloon having a
volume of 4.5E3...
asked 6 hours ago -
The 2 patients, still in the hospital, were interviewed by a
MoH epidemiologist. The interviews revealed...
asked 6 hours ago -
An uncharged capacitor and a resistor are connected in series to
a source of emf. If...
asked 6 hours ago