79. Chapter ma2pe08r, Section .212, Problem 016 (ID: 016.21.2 - MC - MANK08) An indifference curve illustrates the a. prices facing a consumer as she chooses how much of good X and good Y to consume. b. income facing a consumer as she chooses how much of good X and good Y to consume. c. trade-offs facing a consumer as she chooses how much of good X and good Y to consume. d. All of the above are correct.

Q: Further assume that the price of good x, px = $6, the price of good y, py = $8 and the individual…

A: Utility: It refers to the maximum satisfaction which a consumer gets from the purchase of the goods…

Q: If both good 1 and good 2 are bads, will the indifference curve have a positive or a negative slope?…

A: An indifference curve is a graphical representation in economics that shows all the combinations of…

Q: Please draw the indifference curve of u(x1,x2) = max {x1,x2} in the graph. Also please try to make…

A: We have utility function  u(x1,x2) = max {x1,x2}

Q: Write down and explain the four properties of indifference curve.provide adequate graphs

A: The indifference curve shows various combinations of two goods that give the same level of utility…

Q: What are the features or properties of the INDIFFERENCE CURVE in economy?

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Q: Indifference curves can cross? O Sometimes O Never

A: Indifference curve represent the combinations of two goods which gives the equal satisfaction to the…

Q: Explain why most indifference curve are convex??

A: In economics the indifference curve is usually denoted as the contour line merely where the value of…

Q: MRS is constant along a linear indifference curve.

A: The 'marginal rate of substitution' along an indifference curve is given by  MRS=-MUxMUy

Q: Graph and explain indifference curves for the following situations: (i) An individual has constant…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Draw your indifference curve for wine and cheese. List and discuss the 4main properties of the…

A: The indifference curve is the graphical representation of different combination of two commodity…

Q: “Pertaining to different good characteristics; it is possible to distinguish between three different…

A: A graphical representation of a combination of products that gives a consumer a similar level of…

Q: Abhishek's utility function is: U = min {2x- y, 2y–x} %3D Which letter resembles Abhishek’s…

A: Utility: - Utility is the satisfaction derived by any consumer from consuming a good or service.

Q: If a budget line is below the indifference curve. What does this mean? Are the points on the…

A: # given the prices of the two goods a budget line always represents the combination of goods which…

Q: Graph this indifference curve and label "Quantity of y" on the vertical axis and "Quantity of X" on…

A: Indifference curve shows combination of two goods which gives the consumer same level of…

Q: Complete the following table by determining Lucia's marginal rate of substitution (MRS) between the…

A: The indifference curve shows the combination of two goods that gives equal satisfaction to the…

Q: Which utility function represents quasi-linear utility function in y. A. U = x^2+y B.U=X+Y…

A: A quasi-linear utility function is a type of utility function where the marginal utility of one good…

Q: Consider an individual who decides to allocate time between different activities. For simplicity…

A: The work-leisure model represents the trade-offs between working hours and leisure hours. Given…

Q: Suppose that the indifference curves drawn between Pizza and burgers are concave to the origin.…

A: The indifference curve is concave to the origin in a situation where the marginal rate of…

Q: Explain the derivation of the demand curve of a consumer using the indifference curve theory.

A: At the utility-expanding arrangement, the consumer's marginal pace of replacement (the total worth…

Q: Consider the bundle 2 pizza and 8 coke. Label this point. What can you say about the slope of the…

A: Indiffernce curve graphical representation of the combination of two goods that the consumer is…

Q: why convex preferences means that "averages are prefrred to extremes"

A: Preferences are the wishes or the choices of the consumers regarding different products and services…

Q: Ana is in a band and likes to advertise upcoming shows using flyers she posts around the city.…

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Q: Illustrate using a diagram why you cannot draw an indifference curve for Lexicographic preferences?

A: A set of products that give consumers equal levels of satisfaction and make them indifferent is…

Q: With the help of diagram explain how the shape of indifference curve?

A: The indifference curve shows the relationship between the two goods say x and y i.e. the person is…

Q: Explain graphically how indifference analysis can be used to derive a demand curve.

A: A demand curve can be explained as the curve which shows the quantity of goods that can be purchased…

Q: Sanjana loves to read books(B) and likes to watch movies(M) as well. She derives double  the…

A: The two goods are substitutes when only one of them is consumed. Linear utility function shows goods…

Q: Michael and Kelly consume food and clothing. In particular, Michael currently consumes 23 units of…

A: Indifference curves are heuristic instruments that are utilized in modern microeconomics to…

Q: Suppose an individual has the following utility function: U(x,y)=−4(x−5.5)^2 −2(y−3.5)^2 Further…

A: Utility: It refers to the maximum satisfaction which a consumer gets from the purchase of the goods…

Q: Suppose Jane is always willing to give up one apple fo Then, the MRS for apples to oranges is The…

A: Marginal rate is substitution refers to the rate at which a consumer is willing to give up good 2 in…

Q: Higher level of indifference curve represent higher utility.    Is it true.

A: The combination of two commodities that a person is ready to accept in order to maintain the same…

Q: 1. Briefly Explain why convex preferences mean that "averages are preferred to extremes."

A: Convex preferences refer to a idea in economics and decision idea where people exhibit a desire for…

Marginal Rate of Technical Substitution

MRTS reaches a manufacturer when a part of the product is lowered to sustain the manufacturing level when the other part is extended. It is the level of the quantity that is lowered when one extra volume is used, and the output is unchanged.

Preferences and Utility Analysis

Before understanding what is preference and utility analysis, it is very important to understand the terms preference and utility separately.