multiple choices: Which of the following statements are True? (A) If preferences are homothetic, Engel curves...
multiple choices: Which of the following statements are True?
(A) If preferences are homothetic, Engel curves must be straight lines.
(B) An Engel curve is a demand curve with the vertical and horizontal axes reversed.
(C) If preferences are non-satiated, it is impossible for all goods to be inferior goods.
(D) If preferences are homothetic, Engel curves cannot be straight lines.
(E) If preferences are homothetic, every good must be a normal good.
Homework Answers
Correct Answer:
A
E
When consumer preferences are homothetic, then it means that consumers have utilities by a function that represents the homogeneous of first degree. It makes Engel curve to be straight line while goods are normal in nature.
Add Answer to:
multiple choices: Which of the following statements are
True?
(A) If preferences are homothetic, Engel curves...
Explain why the following is true: If preferences are homothetic, then both goods are normal. Explain...
Explain why the following is true: If preferences are homothetic, then both goods are normal. Explain why the following is false: If both goods are normal, then preferences are homothetic. True or False: For U(X, Y) and the income offer curve is either a vertical line or horizontal line not out of the origin, then the Engels curve for one of the goods will be vertical line not out of the origin. Explain why the following is true: If the...
QUESTION 3 Goluk's preferences are given by the following utility function: uq1, 42)- 411/3+ 21/3, where...
QUESTION 3 Goluk's preferences are given by the following utility function: uq1, 42)- 411/3+ 21/3, where q1 is the number of cups of tea and q2 is the number of cookies. Select all that applies: O a. Her preferences satisfy "more is better O b. Her indifference curves are downward sloping O c. Her income-consumption curve is a straight line O d. Cookies is an inferior good for her O e. Her demand function for cookies is downward sloping O...
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...
)For each of the following statements, determine whether it is true or false? Briefly explain. (24...
)For each of the following statements, determine whether it is true or false? Briefly explain. (24 pts (a) If a con b) Assumin s preferences are transitive then they must be complete as well. False. sumer' g there are only two goods, if one good is a bad and the other is a good, then the indifference curves are upward sloping. c) can intersect only if the goods are perfect complements. Indifference curves ) If two utility functions u(-) and...
Benjamin spends his time either watching movies (x1) (he uses "on demand" option, cable TV) or li...
Benjamin spends his time either watching movies (x1) (he uses "on demand" option, cable TV) or listening to songs - MP3 downloaded from the Internet (x2) . His preferences are described by U(x1,x2) = ln(x1) + ln(x2) a) Derive Benjamin's demand for movies and MP3 files as a function of prices p1,p2, and his income m. (do not use Cobb Douglas formula but rather derive demand using "two secrets of happiness"). b) Fix the price of MP3 at p2 =...
5.3 Do you agree or disagree with each of the following statements? Briefly explain your answers...
5.3 Do you agree or disagree with each of the following statements? Briefly explain your answers and illustrate each with supply and demand curves. a. The price of a good rises, causing the demand for another good to fall. Therefore, the two goods are substitutes. b. A shift in supply causes the price of a good to fall. The shift must have been an increase in supply. c. During 2009, incomes fell sharply for many Americans. This change would likely...
Which of the following statements is true? If the price of a good is lowered and...
Which of the following statements is true? If the price of a good is lowered and total revenue decreases, demand is elastic. If the price of a good is raised and total revenue does not change, demand is perfectly elastic. If the price of a good is lowered and total revenue increases, demand is inelastic. If the price of a good is raised and total revenue increases, demand is inelastic. and relatively inelastic demand is represented by a demand curve...
5. Draw out examples of each of the following indifference curves: imperfect substitutes, perfect substitutes, and...
5. Draw out examples of each of the following indifference curves: imperfect substitutes, perfect substitutes, and perfect complements. 6. Jody enjoys having exactly 1 teaspoon of sugar with every cup of coffee she has. What does this say about her indifference curves between the two goods? What happens to her utility level when she is given 5 teaspoons of sugar with one coffee? (Just an explanation) 7. Jay’s Utility function is given by U(x,z) = 3x10.2 x20.8 and P1=$2 and...
(14)Which of the following statements is true? Scarcity exists in every society because of the: (a)Finite...
(14)Which of the following statements is true? Scarcity exists in every society because of the: (a)Finite wants and needs of people in a society (b)Unlimited resources in a society (c)(a) and (b) above (d)None of the above (15)Is it every possible that a student who does only two (2) activities in a day, namely, studies and works out at her local gym can simultaneously increase the time she allocates to studying and working out at her local gym? (a)Yes (b)No...
Complete the following questions by selecting a SINGLE letter for each: i) Which of the following...
Complete the following questions by selecting a SINGLE letter for each: i) Which of the following is most likely to not be an inferior good? a. concert tickets b. Ramen noodle dinners c. none of the above (all of the above are inferior goods) d. used music CD's e. trips to the laundromat ii) If the government imposes a ceiling price on apartment rents, we would expect to observe which of the following? a. an increase in the number of...
QUESTION 3 Goluk's preferences are given by the following utility function: uq1, 42)- 411/3+ 21/3, where q1 is the number of cups of tea and q2 is the number of cookies. Select all that applies: O a. Her preferences satisfy "more is better O b. Her indifference curves are downward sloping O c. Her income-consumption curve is a straight line O d. Cookies is an inferior good for her O e. Her demand function for cookies is downward sloping O...
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...
)For each of the following statements, determine whether it is true or false? Briefly explain. (24 pts (a) If a con b) Assumin s preferences are transitive then they must be complete as well. False. sumer' g there are only two goods, if one good is a bad and the other is a good, then the indifference curves are upward sloping. c) can intersect only if the goods are perfect complements. Indifference curves ) If two utility functions u(-) and...
5.3 Do you agree or disagree with each of the following statements? Briefly explain your answers and illustrate each with supply and demand curves. a. The price of a good rises, causing the demand for another good to fall. Therefore, the two goods are substitutes. b. A shift in supply causes the price of a good to fall. The shift must have been an increase in supply. c. During 2009, incomes fell sharply for many Americans. This change would likely...
Which of the following statements is true? If the price of a good is lowered and total revenue decreases, demand is elastic. If the price of a good is raised and total revenue does not change, demand is perfectly elastic. If the price of a good is lowered and total revenue increases, demand is inelastic. If the price of a good is raised and total revenue increases, demand is inelastic. and relatively inelastic demand is represented by a demand curve...
Most questions answered within 3 hours.
-
two charged proteins P1 and P2 are located at the positions
(1m,1m) and (-1m,1m) respectively on...
asked 3 minutes ago -
eBook
Calculator
Job Order Cost Sheet
Remnant Carpet Company sells and installs commercial carpeting
for office...
asked 8 minutes ago -
Using Kapustinskii equation, determine the lattice energy of a
hypothetical compound NaCl2 . Assume the sum...
asked 10 minutes ago -
Most schools and
businesses require some standard style of documentation for written
reports. Discuss why might...
asked 7 minutes ago -
cookbooks are going metric. in such books 1 cup is equal to 240
ml. Express 1...
asked 10 minutes ago -
________40. Which of the following is the correct sequence of
steps in the general
adaptation...
asked 19 minutes ago -
Hi, Please draw the network diagram.
Activity D on a CPM network has predecessors B and...
asked 21 minutes ago -
Explain how bacteria can be used in Food production
Explain the fermentation of Milk & Cheese...
asked 26 minutes ago -
A uniform, solid sphere of radius 4.50 cm and mass 4.50 kg
starts with a purely...
asked 41 minutes ago -
Consider the prisoners’ dilemma we discussed in class, with the
following twist. If both prisoners choose...
asked 25 minutes ago -
The length of a pencil is measured to be 10.00 cm with a ruler.
What is...
asked 37 minutes ago -
A 120 cm^3 box contains helium at a pressure of 1.80 atm and a
temperature of...
asked 42 minutes ago