Homework Answers
Add Answer to:
Question 4: Answer the following questions regarding preferences: 4.1. Suppose you have two distinct bundles X...
4.1. Suppose you have two distinct bundles X and Y, and, for you, X is strictly...
4.1. Suppose you have two distinct bundles X and Y, and, for you, X is strictly better than Y. Explain briefly using a graph and words why the two indifference curves associated to two bundles X and Y I(X) and I(Y) cannot cross each other. 4.2. Explain using a graph and words why if the assumption of monotonic preferences (aka "more-is- better") implies that indifference curves are not thick and they must be downward sloped. 4.3. Provide three examples of...
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...
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 ,...
Just need answer,asap upvote graduated! 12) If the utility for two goods Y and Yis measured...
Just need answer,asap upvote graduated!
12) If the utility for two goods Y and Yis measured as U-x + y, then it can be concluded that A)"k" and"y"are both bads. B) x and yare perfect substitutes C) the indifference curves on the xy graph will be upward sloping. D) x and y are perfect complements.
Molly consumes two goods, good x and good y and her preferences are represented by the...
Molly consumes two goods, good x and good y and her preferences are represented by the utility function U (x, y) = 1/2x^2 + 4y. 1. Draw (sketch) Molly’s indifference curves for U(x,y) = 10, U(x,y) = 16, U(x,y) = 24 and for U(x,y) = 32.5. 2. Do Molly’s preferences satisfy strict monotonicity? Explain briefly 3. Do the indifference curves you’ve drawn reflect preferences that are convex? Explain briefly
Suppose a consumer views two goods, X and Y, as perfect complements. Her utility function is...
Suppose a consumer views two goods, X and Y, as perfect complements. Her utility function is given by U = MIN [2X, Y]. Sketch the graph of the consumers indifference curve that goes through the bundle X = 7 and Y = 8. Put the amount of Y on the vertical axis, and the amount of X on the horizontal axis. Which of the three assumptions that we made about consumer preferences is violated in this case?
7. We know that well-defined preferences over two goods have the properties that () indifference curves...
7. We know that well-defined preferences over two goods have the properties that () indifference curves are negatively sloped, and (ii) that indifference curves are convex (so that chords between two points on the indifference curve lie in the set ((c, y) such that (c,y)(coyo) when (co. o) is a point on the indifference curve). Suppose that good y is "clean air" and good c is consumption of all other goods. This problem gets you to determine what these two...
Suppose that there two goods, X and Y , available in arbitrary nonnegative quantities (so the the...
Suppose that there two goods, X and Y , available in arbitrary nonnegative quantities (so the the consumption set is R 2 +). The consumer has preferences over consumption bundles that are monotone, strictly convex, and represented by the following (differentiable) utility function: u(x, y) = α √ x + (1 − α) √ y, where x is the quantity of good X, y is the quantity of good Y , and α ≥ 0 is a utility parameter. The...
7. We know that well-defined preferences over two goods have the properties that (i) indifference curves...
7. We know that well-defined preferences over two goods have the properties that (i) indifference curves are negatively sloped, and (ii) that indifference curves are convex (so that chords between two points on the indifference curve lie in the set {(c,y) such that (c,y) (co, yo)) when (co,yo) is a point on the indifference curve). Suppose that good y is "clean air" and good c is consumption of all other goods This problem gets you to determine what these two...
4.1. Suppose you have two distinct bundles X and Y, and, for you, X is strictly better than Y. Explain briefly using a graph and words why the two indifference curves associated to two bundles X and Y I(X) and I(Y) cannot cross each other. 4.2. Explain using a graph and words why if the assumption of monotonic preferences (aka "more-is- better") implies that indifference curves are not thick and they must be downward sloped. 4.3. Provide three examples of...
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...
Just need answer,asap upvote graduated!
12) If the utility for two goods Y and Yis measured as U-x + y, then it can be concluded that A)"k" and"y"are both bads. B) x and yare perfect substitutes C) the indifference curves on the xy graph will be upward sloping. D) x and y are perfect complements.
7. We know that well-defined preferences over two goods have the properties that () indifference curves are negatively sloped, and (ii) that indifference curves are convex (so that chords between two points on the indifference curve lie in the set ((c, y) such that (c,y)(coyo) when (co. o) is a point on the indifference curve). Suppose that good y is "clean air" and good c is consumption of all other goods. This problem gets you to determine what these two...
7. We know that well-defined preferences over two goods have the properties that (i) indifference curves are negatively sloped, and (ii) that indifference curves are convex (so that chords between two points on the indifference curve lie in the set {(c,y) such that (c,y) (co, yo)) when (co,yo) is a point on the indifference curve). Suppose that good y is "clean air" and good c is consumption of all other goods This problem gets you to determine what these two...
Most questions answered within 3 hours.
-
I need to write a research paper and work cited about this
topic: The United States...
asked 51 seconds ago -
Hello! I was wondering if I could have some help?
If the vapor pressure of carvone...
asked 22 minutes ago -
An economist wants to estimate the mean per capita income (in
thousands of dollars) for a...
asked 42 minutes ago -
What would be the input/output characteristic of a circuit
obtained by putting two of your 2's-complementers...
asked 41 minutes ago -
In Drosophila, the transition from the syncytial blastoderm
stage to the cellular blastoderm stage is a...
asked 1 hour ago -
Project management question:
Name 3 different types of resources (hint: humans are one
type)
asked 1 hour ago -
Consider the following reaction: C 2H 2( g) + 2H 2( g) C 2H 6(
g)...
asked 1 hour ago -
Consider a 1.0 L buffer containing 0.092 mol L-1 HCOOH and 0.100
mol L-1 HCOO-. What...
asked 1 hour ago -
Koch Realty has owned a vacant land with a FMV of
$775,000 and an adjusted basis...
asked 1 hour ago -
It is estimated 29% of all adults in United States invest in
stocks and that 85%...
asked 1 hour ago -
What does a 2-sided p value of 0.04 mean? (I am not asking if it
is...
asked 1 hour ago -
A parallel-plate capacitor is made from two aluminum-foil
sheets, each 7.8 cmcm wide and 5.1 mmlong....
asked 1 hour ago