Draw indifference curves to represent the following types of consumer preferences (put good-x on the x-axis...
Draw indifference curves to represent the following types of consumer preferences (put good-x on the x-axis and good-y on the y-axis). Make sure to include arrows to indicate direction of preference. (Hint: Start with a bun- dle (say 10 units of each), and think about other bundles that give the consumer the same utility.)
a) A situation where the tangency condition is always satised.
b) A situation with a basket that has positive amounts of both goods that satises the tangency condition but is not optimal.
c) A situation with an optimal basket that satises the tangency condition but is also a corner solution.
d) A situation where the tangency condition is never sat- ised. e) A situation where that tangency condition is satised, but with a negative amount of good x.
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Draw indifference curves to represent the following types of
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Draw indifference curves to represent the following types of consumer preferences (put Apples on the x-axis...
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Draw indifference curves to represent the following consumer preferences. For each set of preferences draw two...
Draw indifference curves to represent the following consumer
preferences. For each set of preferences draw two indifference
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2. Sandra has the following preferences over cookies (x) and tea (y) (x,y) = min(3x, 2y)...
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Draw indifference curves to represent the following consumer
preferences. For each set of preferences draw two indifference
curves U1 and U2 such like, U1 > U2
e) I like peanut butter and jelly, and have a diminishing marginal rate of substitution. f) I like to consume exactly 5 ounces of peanut butter and 5 ounces of jelly. The further away I get from this point, in any direction, the less happy I am.
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...
Question 16 1 pts A typical indifference curve is negatively sloped because: as we consume more of one good, we are willing to give up the consumption of another good without changing our utility higher indifference curves represent higher levels of utility higher indifference curves represent lower levels of utility we assume that a consumer's income is constant Question 17 1 pts A typical indifference curve: O is convex to the origin (bowed in) has a constant slope is concave...
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