A preference map consists of: O A. indifference curves, O B. points where the marginal rate of substitution is equal to the relative price, OC. indifference curves that exhibit a diminishing marginal rate of substitution, O D. demand curves, where the marginal rate of substitution describes the rate at which someone will more of the y-axis good to more of the x-axis good while indifference curve O A. give up; get; moving to a higher O B. give up; get; remaining on the same O c. produce; consume; moving to a higher O D. get; consume; remaining on the same

A preference map consists of: O A. indifference curves, O B. points where the marginal rate of substitution is equal to the relative price, OC. indifference curves that exhibit a diminishing marginal rate of substitution, O D. demand curves, where the marginal rate of substitution describes the rate at which someone will more of the y-axis good to more of the x-axis good while indifference curve O A. give up; get; moving to a higher O B. give up; get; remaining on the same O c. produce; consume; moving to a higher O D. get; consume; remaining on the same

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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36. What is substitution effect an income increase leading to the outward budget line and IC price of a good change leading to the relative prices change and choice of individual to consume a cheaper good more both prices of goods change in the same direction and no change in consumption ratio อื่นๆ: 37. What is 'not' correct about income effect? income effects results from changes in lower good prices Income effects results from the move in the budget constraint outward income effects results from the move in the budget constraint inward income effects can be seen along the same IC O อื่นๆ:
If the MRS is an increasing function of which of the following must be true. a. Preferences are convex O b. None of the other answers O c. Utility is not homothetic O d. Demand will be a corner solution
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Leah consumes at a point on her budget line where her marginal rate of substitution is less than the magnitude of the slope of her budget line. As Leah moves towards her best affordable point, she will move to Select one: A. a higher indifference curve. B. a higher budget line. OC. a lower indifference curve. OD. a tangent point on the same indifference curve. O E. a lower budget line. Clear my choice
Suppose that price of good X rises by 25 % while price of Y rises by 50% and Income rises by 50%. Then which of the following is correct? O Budget line becomes flatter and consumer is able to afford new bundles that were not affordable before. Budget line becomes steeper and consumer is not able to afford some bundles that were affordable before. Budget line becomes flatter and consumer is not able to afford some bundles that were affordable before. Budget line becomes steeper and consumer is able to afford new bundles that were not affordable before.
Suppose that the following Cobb-Douglas utility function is given U(X,Y) = X³y/2, Which of the following is correct? O Law of diminishing Marginal Utility holds for good Y but not for good X while Law of Diminishing Marginal Rate of Substitution holds. Law of diminishing Marginal Utility holds for good X but not for good Y while Law of Diminishing Marginal Rate of Substitution holds. Law of diminishing Marginal Utility holds for good Y but not for good X while Law of Diminishing Marginal Rate of Substitution fails to hold. Law of diminishing Marginal Utility holds for both goods and Law of Diminishing Marginal Rate of Substitution holds as well
QUESTION 32 The optimal consumption point in an economy with two goods A and B is where: O a. The marginal utility of product A over its price is equal to the marginal utility of product B over its price O b. the marginal rate of substitution of both goods is equal O c. The price of good A is equal to the price of B Od. The marginal utility of product A is equal to the marginal utility of product B
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Suppose that you have utility function U(x, y) = x2y2, What happens to the share of income spent on each good (, ) when the 1/2 P.X P,y price of x increases? O a. Share spent on x increases O b. Share spent on y increases O c. Both shares stay the same O d. Both shares decrease O e. Not enough information ge Next page
Please help - indifference curves
Anya is currently consuming $1000 worth of consumption goods C and spending 30 hours in leisure I per week, where her marginal rate of substitution is 20. Assume that the price of a consumption good C is $1. This implies that she is willing to: O a. sacrifice 20 hours of leisure to get an extra $1 worth of consumption. O b. sacrifice $20 worth of consumption to enjoy the next hour of leisure. O c. her current utility will be higher by $20 if she gets one more unit of leisure. O d. she values the next unit of consumption at $20.
Below, the left panel shows a preference map for and the right panel shows a preference map for O A. perfect substitutes; perfect complements O B. perfect complements; perfect substitutes O C. ordinary goods; perfect complements O D. perfect substitutes; ordinary goods Suppose that you have $4 and the price of both goods is $1. When Good A and Good B are perfect compliments, you should buy units of Good A and units of Good B. ..... Figure A Figure B Good B Good B 5- 10- 8- 4- 6- 3- 4- 2- 2- 1- IC, 0- 0- 10 Good A Good A o 回