True or False. A consumer with convex preferences who is indifferent between the bundles (5,2) and...
True or False.
A consumer with convex preferences who is indifferent between the bundles (5,2) and (11,6) will like the bundle (8,4) at least as well as either of the first two bundles. Assume these two goods are imperfect substitutes.
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True or False.
A consumer with convex preferences who is indifferent between
the bundles (5,2) and...
Mr. MacGregor's preferences are such that he is indifferent between the following bundles of (x,y): (1,4),...
Mr. MacGregor's preferences are such that he is indifferent between the following bundles of (x,y): (1,4), (2,2), (4,1). Is it possible that the utility function U In(ry) will represent his preferences? Explain why or why not. Ignoring the utity function, do you think it is likely that he would be indifferent between the previous three bundles and the bundle (2,3)? Why or why not? ::/摄
1. True or False, and explain briefly. 1) The assumption that more is better implies that...
1. True or False, and explain briefly. 1) The assumption that more is better implies that the indifference curves are upward sloping 2) Convexity of indifference curves implies that consumers are willing to give up more to get an extra the more they have 3) Consider the following three bundles. Bundle Good Goody If Bundles A and B are on the same indifference curve, preferences satisfy all the usual assumptions introduced in the lecture, Bundle Cis preferred to Bundle A...
3. There are two goods x and y. Milton preferences for bundles of x and y...
3. There are two goods x and y. Milton preferences for bundles of x and y can be described as follows: Between any two bundles, Milton prefers the bundle that has more x. If two bundles have the same amount of x, he prefers the bundle that has more y. (Obviously, bundles with the same amount of x and y are the same bundle). a. Prove that Milton’s preferences satisfy the completeness assumption. (6) b. Describe what the indifference curves...
1. True or False? Explain! a. If S and F are perfect complements you must be...
1. True or False? Explain! a. If S and F are perfect complements you must be indifferent between these two bundles: (i) 1 unit of S and 1 unit of F; and (ii) 2 units of S and 1 unit of F b. A consumer enjoys both the coffee and eggs for breakfast. She is indifferent between bundle A (3 eggs and 1 cup of coffee and bundle B (1 egg and 3 cups of coffee). Given a third bundle...
Question 2. Consider the following 8 bundles of goods x and y: A = (8,4) B...
Question 2. Consider the following 8 bundles of goods x and y: A = (8,4) B = (5,6) C = (5,9) D = (10,3) E =(1,4) F =(6,5) G=(2,8) H =(7,8) (a) Come up with an example of a utility function that will produce the following order of preference for the bundles, where H is most preferred, A and G are equally preferred, and E is least preferred. H , C , B , F , A = G ,...
The following problem shows an example of preferences that satisfy transitivity for but not for~. Johrn...
The following problem shows an example of preferences that satisfy transitivity for but not for~. Johrn consumes two goods, X and Y. He prefers the bundle (x, y) to the bundle (x',y) if and only if (y-r'y > 1). Similarly, he prefers the bundle (x'y') to the bundle (x, y) if and only if (r'y' - ry > 1). Otherwise he is indifferent between the two bundles. a. Show that the relation of indifference () is not transitive for John....
1) Consider a consumer who is choosing among combinations of two goods: cookies (c) and donuts...
1) Consider a consumer who is choosing among combinations of two goods: cookies (c) and donuts (d). A bundle of c cookies and d donuts is given by (c, d). Assume that both c and d can take values 0,1,2, or 3. The consumer's preferences over bundles of cookies and donuts are as follows: For any two bundles (c,d) and (c,d'): (c,d) (e,d') whenever c2c and d 2 d To understand how to use this definition, consider two bundles (c,...
6) (12pts.)A consumer who can only consume two goods has a preference relation over the bundles...
6) (12pts.)A consumer who can only consume two goods has a preference relation over the bundles that are "smooth and is such that, the marginal rate of substitution of good 2 for good 1 at a bundle (41, 42) is: MRS2,191.42) = 3 If the price of good 1 is 3 TL/unit, price of good 2 is 6 TL/unit and the income of the consumer is 27 TL what is the bundle that the consumer will consume (i.e., what is...
can you please explain this deeply? thank you Question 7 Consider a consumer with preferences over...
can you please explain this deeply? thank you
Question 7 Consider a consumer with preferences over two goods 1 and 2. Assume that the horizontal axis pertains to the amount of good 1 and the vertical axis pertains to the amount of good 2. Suppose that, given the consumption bundle r = 10 and y = 10, a consumer's MRS (marginal rate of substitution) is equal (in absolute value) to 4. The price of good 1 is $1, the price...
3. Robin's Preferences Robin is an ambitious young knight living in the middle ages. He is...
3. Robin's Preferences Robin is an ambitious young knight living in the middle ages. He is in his early career and wants to prove himself. He is detached from material things (he doesn't attend the lavish banquets or the evening entertainments in the castle) and prefers to improve his skills in horsemanship instead. As he states in his preferences "I like horses, I would always, rather always ride my horse, do more practice of it, and am completely indifferent as...
Mr. MacGregor's preferences are such that he is indifferent between the following bundles of (x,y): (1,4), (2,2), (4,1). Is it possible that the utility function U In(ry) will represent his preferences? Explain why or why not. Ignoring the utity function, do you think it is likely that he would be indifferent between the previous three bundles and the bundle (2,3)? Why or why not? ::/摄
1. True or False, and explain briefly. 1) The assumption that more is better implies that the indifference curves are upward sloping 2) Convexity of indifference curves implies that consumers are willing to give up more to get an extra the more they have 3) Consider the following three bundles. Bundle Good Goody If Bundles A and B are on the same indifference curve, preferences satisfy all the usual assumptions introduced in the lecture, Bundle Cis preferred to Bundle A...
1. True or False? Explain! a. If S and F are perfect complements you must be indifferent between these two bundles: (i) 1 unit of S and 1 unit of F; and (ii) 2 units of S and 1 unit of F b. A consumer enjoys both the coffee and eggs for breakfast. She is indifferent between bundle A (3 eggs and 1 cup of coffee and bundle B (1 egg and 3 cups of coffee). Given a third bundle...
The following problem shows an example of preferences that satisfy transitivity for but not for~. Johrn consumes two goods, X and Y. He prefers the bundle (x, y) to the bundle (x',y) if and only if (y-r'y > 1). Similarly, he prefers the bundle (x'y') to the bundle (x, y) if and only if (r'y' - ry > 1). Otherwise he is indifferent between the two bundles. a. Show that the relation of indifference () is not transitive for John....
1) Consider a consumer who is choosing among combinations of two goods: cookies (c) and donuts (d). A bundle of c cookies and d donuts is given by (c, d). Assume that both c and d can take values 0,1,2, or 3. The consumer's preferences over bundles of cookies and donuts are as follows: For any two bundles (c,d) and (c,d'): (c,d) (e,d') whenever c2c and d 2 d To understand how to use this definition, consider two bundles (c,...
6) (12pts.)A consumer who can only consume two goods has a preference relation over the bundles that are "smooth and is such that, the marginal rate of substitution of good 2 for good 1 at a bundle (41, 42) is: MRS2,191.42) = 3 If the price of good 1 is 3 TL/unit, price of good 2 is 6 TL/unit and the income of the consumer is 27 TL what is the bundle that the consumer will consume (i.e., what is...
can you please explain this deeply? thank you
Question 7 Consider a consumer with preferences over two goods 1 and 2. Assume that the horizontal axis pertains to the amount of good 1 and the vertical axis pertains to the amount of good 2. Suppose that, given the consumption bundle r = 10 and y = 10, a consumer's MRS (marginal rate of substitution) is equal (in absolute value) to 4. The price of good 1 is $1, the price...
3. Robin's Preferences Robin is an ambitious young knight living in the middle ages. He is in his early career and wants to prove himself. He is detached from material things (he doesn't attend the lavish banquets or the evening entertainments in the castle) and prefers to improve his skills in horsemanship instead. As he states in his preferences "I like horses, I would always, rather always ride my horse, do more practice of it, and am completely indifferent as...
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