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.
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Indifference Curves and the Budget Constraints:
True, False, Uncertain or Not enough information:
A given budget...
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.
Question 2: in the figure below you can find two budget constraints and two indifference curves...
Question 2: in the figure below you can find two budget constraints and two indifference curves for Dan. Initially, Dan's hourly wage is $10, and he chooses bundle A on IC1, and enjoys 13 hours of leisure. When the wage increases to $12, he prefers bundle B on IC2, and enjoys 11 hours of leisure In a manner similar to Figure 2.7 on page 27 of the textbook, draw the income effect and substitution effect for leisure when the wage...
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
The following graph shows three indifference curves and budget constraints for a consumer. The consumer is...
The following graph shows three indifference curves and budget constraints for a consumer. The consumer is initially consuming at point A, on the indifference curve Ui and is constrained by the budget constraint BC1 (indicated by the blue line) Bc3 10 Ul BC BC 10 Suppose the government provides this consumer a subsidy on good x, which effectively lowers the price of x. This is represented by a of BC1 out away from the origin. The result is this consumer...
10. The figure shows two indifference curves and two budget constraints for a consumer named Kevin....
10. The figure shows two indifference curves and two budget
constraints for a consumer named Kevin.
Number of Sweaters B 28 21 0 12 35 63 Number of Shirts (a) If Kevin's income is $1,260, then what is the price of a sweater? (b) Suppose point A was Kevin's optimum last week, and point B is his optimum this week. What happened between last week and this week? (c) If point A is Kevin's optimum, then at that optimum, what...
7. Consider the figure below, which shows the budget constraint and the indifference curves of good...
7. Consider the figure below, which shows the budget constraint and the indifference curves of good King Zog. Zog is in equilibrium with an income of s300, facing prices px 4 and py sio 30 22.5 0 35 43 75 90 a. How much X does Zog consume? b. If the price of X falls to s2.50, while income and the price of Y stay constant, how much X will Zog consume? c. How much income must be taken away...
(a) State and explain if the following statements are True, False or Uncertain. You have to...
(a) State and explain if the following statements are True, False or Uncertain. You have to explain your option even if the answer is True. If marginal cost in two markets is identical for a firm, then an international monopolistically competitive firm would set the same price in both markets. The Heckscher-Ohlin model can explain why the relative demand for skilled workers has increased within all sectors in developed countries in recent decades. In the specific factor model with labor...
i need the checklist completed and answered clearly, we didnt go over this in class and this is all the information my t...
i
need the checklist completed and answered clearly, we didnt go over
this in class and this is all the information my teacher gave us
for this problem on the homework, make the answer easy to read. the
graph and how getting the graph is the most important
Please only use a PDF! All other types receive zero points! Method 1: Most programs have a feature to "save as" then select PDF. You can do this from MSword in the...
Be thorough and concise. If possible, include a graphical explanation as well as verba True/False/Uncertain. You...
Be thorough and concise. If possible, include a graphical explanation as well as verba True/False/Uncertain. You must provide a proof for your answer. (20 points) 1. The supply curve of labor may be upward sloping, downward sloping or both- it depends on the relative size of substitution and income effects. The demand curve for labor is derived from the marginal product of labor curve- the portion that is subject to increasing returns to labor, due to specialization and division of...
Are the following statements true, false, or uncertain? Explain your answer (c) If there are no...
Are the following statements true, false, or uncertain? Explain
your answer
(c) If there are no firms, only individuals trading with one another (an exchange economy), and everyone has the same marginal rate of substitution, then the allocation of resources is Pareto efficient. (d) Consider two social welfare functions, SWFA - U 2U2 and SWF min (Ui, U2)
Question 2: in the figure below you can find two budget constraints and two indifference curves for Dan. Initially, Dan's hourly wage is $10, and he chooses bundle A on IC1, and enjoys 13 hours of leisure. When the wage increases to $12, he prefers bundle B on IC2, and enjoys 11 hours of leisure In a manner similar to Figure 2.7 on page 27 of the textbook, draw the income effect and substitution effect for leisure when the wage...
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
The following graph shows three indifference curves and budget constraints for a consumer. The consumer is initially consuming at point A, on the indifference curve Ui and is constrained by the budget constraint BC1 (indicated by the blue line) Bc3 10 Ul BC BC 10 Suppose the government provides this consumer a subsidy on good x, which effectively lowers the price of x. This is represented by a of BC1 out away from the origin. The result is this consumer...
10. The figure shows two indifference curves and two budget
constraints for a consumer named Kevin.
Number of Sweaters B 28 21 0 12 35 63 Number of Shirts (a) If Kevin's income is $1,260, then what is the price of a sweater? (b) Suppose point A was Kevin's optimum last week, and point B is his optimum this week. What happened between last week and this week? (c) If point A is Kevin's optimum, then at that optimum, what...
7. Consider the figure below, which shows the budget constraint and the indifference curves of good King Zog. Zog is in equilibrium with an income of s300, facing prices px 4 and py sio 30 22.5 0 35 43 75 90 a. How much X does Zog consume? b. If the price of X falls to s2.50, while income and the price of Y stay constant, how much X will Zog consume? c. How much income must be taken away...
i
need the checklist completed and answered clearly, we didnt go over
this in class and this is all the information my teacher gave us
for this problem on the homework, make the answer easy to read. the
graph and how getting the graph is the most important
Please only use a PDF! All other types receive zero points! Method 1: Most programs have a feature to "save as" then select PDF. You can do this from MSword in the...
Be thorough and concise. If possible, include a graphical explanation as well as verba True/False/Uncertain. You must provide a proof for your answer. (20 points) 1. The supply curve of labor may be upward sloping, downward sloping or both- it depends on the relative size of substitution and income effects. The demand curve for labor is derived from the marginal product of labor curve- the portion that is subject to increasing returns to labor, due to specialization and division of...
Are the following statements true, false, or uncertain? Explain
your answer
(c) If there are no firms, only individuals trading with one another (an exchange economy), and everyone has the same marginal rate of substitution, then the allocation of resources is Pareto efficient. (d) Consider two social welfare functions, SWFA - U 2U2 and SWF min (Ui, U2)
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