100 84 75 15 16 19 20 24 Hours of free time per day The diagram shows a student's indifference curves for hours of free time per day and final grade. Based on this graph, which of the following statements is correct? The marginal rate of substitution at H is 0.25. The marginal rate of substitution is higher at D than at A. n Cor a given final grade, the student's marginal rate of substitution between free Final grade
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- 6) The figure below shows a student's feasible frontier and her indifference curves for final exam marks and the hours of free time per day. The table also gives the marginal rate of substitution (MRS) and the marginal rate of transformation (MRT) for the points shown in the figure. Based on this information, identify whether each of the following statements is true or false. Final grade 100 c. At D, the MRT of 4 means that if she gives up all of her free time, she can attain 60 extra grade points. d. At E, the MRS matches the student's MRT. Therefore, she should exchange one hour of free time with 7 extra grade points. 90- a. At A, one hour of free time is equivalent in value to 3 grade points. However, 1 extra hour of studying leads to 9 extra grade points. She should therefore study more. 0 b. At B, one hour of free time is equivalent in value to 2 grade points. However, 1 extra hour of studying leads to 20 extra grade points. She should therefore study more. 0 Feasible frontier…Prove that price effect and income effect can be broken into income and substitution effect. Explainthe significance of the breakup of price effect and substitution effect in marginal decision making.Is the marginal rate of substitution is another way to mathematically expressing the opportunity for one more unit of a good that is consumed
- 6. Explain the marginal rate of substitution. No more than 3 linesFind Kramer's marginal rate of substitutionMega Partner is selling two products Marker(m) and Eraser(e) and their budget is given with thefollowing equation: 15Qe+ 30Qm= 3000. Now answer the following questions. I. Draw the budget line for Mega PartnerII. What would be the highest amount spend on Marker with the existing budgetIII. If Total budget increases to 4500 what would be the new budget line (use diagram)IV. If Price of the Marker becomes 15, how this changes the existing budget line keeping allthe values remain same.
- 509 UNIT 1 ASSIGNMENT ECON 509 UNIT 2 ASSIGNMENT X PDF ars/Jo.. Tp AN Read aloud V Draw Highlight ECON 509 ASSIGNMENT UNIT ONE Answer All questions 1) a) Given the following typical utility curves determine whether they have convex indifference curves (that is, whether the Marginal Rate of Substitution declines as x increases). U(x. y)-x² -y? b) Given the following Constant Elasticity of Substitution production function, show whether or not it is homogeneous, and the scale it exhibits. Q = [L² + K']^ 2) Prove that the polynomial P(x) = -2x3 + 2x2 + 10x+ 6 has a zero at x 3, and factor the polynomial. %3D 3) The demand and supply functions for two related goods; jeans (x) and shirts(y). are given byD E B 04 What does point D on this graph represent? O An optimal choice O A choice on the budget constraint O An impossible choice given the income O A choice that would result in income left over80 60 40 20 0 a N b A 10 a Multiple Choice 20 B 30 C 40 b C NE 50 60 Refer to the diagram. The slope of curve ZZ at point A is approximately