3.7 (0) Joan likes chocolate cake and ice cream, but after 10 slices ofcake, she gets tired of cake, and eating more cake makes her less happy.Joan always prefers more ice cream to less. Joan's parents require her toeat everything put on her plate. In the axes below, use blue ink to draw aset of indifference curves that depict her preferences between plates withdifferent amounts of cake and ice cream. Be sure to label the axes.(a) Suppose that Joan's preferences are as before, but that her parentsallow her to leave anything on her plate that she doesn't want. On thegraph below, use red ink to draw some indifference curves depicting herpreferences between plates with different amounts of cake and ice cream.

Answered: 3.7 (0) Joan likes chocolate cake and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Graphical and Intuitive Optimization Consider a consumer who must allocate their available income between the consumption of two goods, Beer and Pizza. Their preferences over Beer and Pizza adhere to the usual assumptions we have made about preferences. The indifference curve map below reflects their preferences and the budget constraint reflects current income and prices. In the simplest terms possible, define or explain the term "Marginal Utility of Beer" (MUB). In the simplest terms possible, define or explain the term "Marginal Rate of Substitution of beer for pizza" (MRSBP). In the simplest terms possible, intuitively explain the meaning of MUB/PB, where PB represents the price of one unit of Beer.
solve g, h please Thank you
Michael and Kelly consume food and clothing. In particular, Michael currently consumes 23 units of food and 19 units of clothing and Kelly currently consumes 17 units of food and 21 units of clothing. At these levels of consumption, Michael's MRS of food for clothing is 0.40 and Kelly's MRS of food for clothing is 2.50. Illustrate with an Edgeworth box. 1.) Using the three-point curved line drawing tool, draw an indifference curve for Michael when consuming 23 units of food and 19 units of clothing. Label this curve UM. 2.) Using the three-point curved line drawing tool, draw an indifference curve for Kelly when consuming 17 units of food and 21 units of clothing. Label this curve Uk. Carefully follow the instructions above, and only draw the required objects. Next, fill in the missing information in the following table. For simplicity, assume the consumers have the option of trading one unit of food (F) for one unit of clothing (C). Fill in the following table. (Enter your responses…
4. Mrs. May always drinks each cups of coffee (21) with two spoons of sugar (x2). She would never consider consuming them in any other proportion. Suppose she has an income of $3, the price per cup of coffee is $0.2, and the price per spoon of sugar is $0.05. 1) Write down a utility function that represents Mrs. May's preferences for coffee and sugar. Draw several of her indifference curves. 2) Can you help her to find her optimal consumption bundle? 3) Suppose that due to new coffee import taxes, the price of coffee goes up to $0.3. Find her nwe optimal bundle. How much will she be paying in coffee taxes? 4) Suppose that prices go back to the initial levels, but Mrs. May need to pay 25% of income tax. As a result, her income decreases to 3 x (1 - 25%) = 2.25 dollars. Find her optimal choice. 5) Derive Mrs. May's demand function for cups of coffee and spoonsful of sugar. Are the goods. normal or inferior, ordinary or Giffen, substitues or complements?
can you explain how they got this solution
Belinda loves chocolate and always thinks that more is better than less. Belinda thinks that a few piano lessons would be worse than none at all, but if she had enough piano lessons to get good at playing the piano, she would prefer more lessons to less. Draw a graph with chocolate on the horizontal axis and piano lessons on the vertical axis. On your graph sketch two indifference curves for Belinda that would be consistent with this story. Label the better of the two indifference curves AA and the worse one BB. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
1. Briefly Explain why convex preferences mean that "averages are preferred to extremes."
5) Consider indifference curves for the consumption of milk and chocolates (you may assume that both are 'goods'). The indifference curves are drawn with the number of chocolate bars on the horizontal axis and pints of milk on the vertical axis. Suppose that at every point, consumer A's indifference curve is flatter than consumer B's. What can you conclude about consumers A and B tastes and preferences?
7) A consumer has to choose the optimal amount of cheese and crackers to purchase. He or she has drawn his or her budget constraint (BC) and indifference curves on a graph with the amount of cheese (in ounces) on the horizontal axis and the amount of crackers (in packages) on the vertical axis. Which of the following statements is true if the price of crackers declines? The BC shifts to the left (down). The BC shifts to the right (up). The BC rotates such that it intersects the horizontal axis at the same point as before and intersects the vertical axis at a lower point. The BC rotates such that it intersects the horizontal axis at the same point as before and intersects the vertical axis at a higher point.
QUESTION 7 Assume the following is the budget equation for Courtney who spends her income between music concerts and movies: 86 Music Concerts + 85 Movies = 7216 If Music Concerts are measured on the vertical axis, what would be the slope of the budget line ? 2
In your own words, explain what indifference curves are. Give 4 properties of indifference curves.
Alexi has a budget of $21 to spend on toaster and breads. He does not directly gain any utility from owining a toaster but for every slice of toasted bread he consumes he gain 2 units of utility, that is if he owns a toaster. Without the toaster, he gain 0 units of utility from consuming plain bread. Suppose the toaster has inferior quality and will break after toasting only 10 slices, then Alexi needs to buy a new one. The current market price for cheap toaster is $5 and the price for a single slice of bread is $1. Assume that Alexi aims to maximize consumer surplus. Find Alexi's income-consumption curve for slices of bread for incomes between $0 and $21, assuming a price of $1 per slice.

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