B. The indifference curves shown below are for Ali whose income per month is $1400. Using the information given in the graph below, answer the following questions: Good Y i. 1234 10 0 111. 10 14 Good X What are the conditions for consumer equilibrium in indifference curve analysis? 7 ii. What are the prices of goods Y and X when Ali is on lo, How much does Ali spend on good Y and good X respectively? What are the prices of goods Y and X when Ali is on ₁ Explain the changes that have happened that have caused Ali's indifference curve to move from Io to I₁. What are the quantities of X and Y do Ali purchase to maximise his utility? iv. Using the indifference curve analysis, derive the demand curve for good X. Total Product 0 C. What is free-rider problem and how does it cause underproduction of public goods in a competitive market? D. Complete the following short-run cost table using the information provided. 20 TFC AFC 12 TVC AVC 12 10 12 14 TC MC ATC
B. The indifference curves shown below are for Ali whose income per month is $1400. Using the information given in the graph below, answer the following questions: Good Y i. 1234 10 0 111. 10 14 Good X What are the conditions for consumer equilibrium in indifference curve analysis? 7 ii. What are the prices of goods Y and X when Ali is on lo, How much does Ali spend on good Y and good X respectively? What are the prices of goods Y and X when Ali is on ₁ Explain the changes that have happened that have caused Ali's indifference curve to move from Io to I₁. What are the quantities of X and Y do Ali purchase to maximise his utility? iv. Using the indifference curve analysis, derive the demand curve for good X. Total Product 0 C. What is free-rider problem and how does it cause underproduction of public goods in a competitive market? D. Complete the following short-run cost table using the information provided. 20 TFC AFC 12 TVC AVC 12 10 12 14 TC MC ATC
Chapter6: Demand Relationships Among Goods
Section: Chapter Questions
Problem 6.9P
Related questions
Question
![B. The indifference curves shown below are for Ali whose income per month is $1400. Using the
information given in the graph below, answer the following questions:
Good Y
7 10 14
Good X
i. What are the conditions for consumer equilibrium in indifference curve analysis?
11.
0
1
2
3
4
10
111.
What are the prices of goods Y and X when Ali is on Explain the changes that have
happened that have caused Ali's indifference curve to move from Io to I₁. What are the
quantities of X and Y do Ali purchase to maximise his utility?
iv. Using the indifference curve analysis, derive the demand curve for good X.
What are the prices of goods Y and X when Ali is on lo, How much does Ali spend on
good Y and good X respectively?
C. What is free-rider problem and how does it cause underproduction of public goods in a
competitive market?
Total
Product
D. Complete the following short-run cost table using the information provided.
20
TFC
AFC
12
TVC
AVC
12
10
12
14
TC
MC
ATC](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f97a002-b529-4f7d-84e0-23025b96662f%2Fff9ebb3b-92eb-4eb5-87db-0ea12fcaedc7%2Fo61otfv_processed.png&w=3840&q=75)
Transcribed Image Text:B. The indifference curves shown below are for Ali whose income per month is $1400. Using the
information given in the graph below, answer the following questions:
Good Y
7 10 14
Good X
i. What are the conditions for consumer equilibrium in indifference curve analysis?
11.
0
1
2
3
4
10
111.
What are the prices of goods Y and X when Ali is on Explain the changes that have
happened that have caused Ali's indifference curve to move from Io to I₁. What are the
quantities of X and Y do Ali purchase to maximise his utility?
iv. Using the indifference curve analysis, derive the demand curve for good X.
What are the prices of goods Y and X when Ali is on lo, How much does Ali spend on
good Y and good X respectively?
C. What is free-rider problem and how does it cause underproduction of public goods in a
competitive market?
Total
Product
D. Complete the following short-run cost table using the information provided.
20
TFC
AFC
12
TVC
AVC
12
10
12
14
TC
MC
ATC
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