What is an example of an indifference curve that intersects itself? (give an example of two goods for which this is true)
Why can the indifference curve intersect itself?
What is an example of an indifference curve that intersects itself? (give an example of two...
1. Give the main reason why two indifference curves can never intersect! 2. Why does a higher indifference curve (further right) represents a higher level of utility? 3. Describe a scenario of your own choice where the substitution effect of a price increase will have the same sign (positive or negative) than the income effect! 4. For a price decrease related to a Giffen goods, describe the signs of both the substitution effect as well as the income effect.
2. We say that two curves intersect orthogonally if they intersect and their tangent lines are orthogonal at each point in the intersection. For example, the curve y = 0 intersects the curve x2 + y2-1 orthogonally at (-1,0) and (1,0). Let H be the set of curves y2b with b ER. (a) Prove that the tangent line of each curve in H at a point (r, y) with y / 0 has slope (b) Let y -f(x) be a...
2. We say that two curves intersect orthogonally if they intersect and their tangent lines are orthogonal at each point in the intersection. For example, the curve y = 0 intersects the curve x2 + y2-1 orthogonally at (-1,0) and (1,0). Let H be the set of curves y2-2.2-b with b є R. (a) Prove that the tangent line of each curve in H at a point (x, y) with y 0 has slope - (b) Let y-f(x) be a...
What is an indifference curve and how does a preference map show preferences? Peaches (number per month) An indifference curve shows_ . A preference map shows that a person prefers combinations A combinations of goods that a consumer can afford; he cannot afford over the combinations he can afford O B. combinations of goods that are available; on lower indifference curves to combinations on higher indifference curves O C. combinations of goods among which a consumer is indifferent; that are...
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?...
Which of the following is a true characteristic of an indifference curve map? Moving northeast to a new indifference curve will increase utility. Indifference curves can cross.
In the two-period model, we normally graph the consumer's indifference curve in the C-C'axis. Question: Explain why the shape of the indifference curve can explain the desire of a consumer to smooth consumption over time. (Hint: If it helps, you can start by thinking of the shape of the curves when c=c' which are an extreme case.)
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.
Define an indifference curve and on a correctly labeled graph explain what the points along the indifference curve represent. Define using the correct mathematical equations for: a) a budget set, and b) a budget line. On correctly labeled graph, show and explain the indifference curves for normal goods X and Y. In two sentences, define a budget line.
4) (20 pts) The marginal product curve intersects the average product curve at the maximum point of the AP curve. Conversely, the marginal cost curve intersects the average variable cost curve at the minimum point of the AVC curve. a. Explain why this necessarily has to be the case. Present your answer both in mathematical and intuitive terms. Be as detailed as you possibly can in answering this question. b. Explain why the marginal cost curve above the average variable...