Q: Given the table below, draw the indifference curve and find the slope between point B and C.
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Q: List and explain the four (4) properties of the indifference curves
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Q: If the slope of indifference curve is -0.8 and the change in X axis is 8, what is the change in Y…
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Q: Why do we expect that indifference curves will never cross?
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A:
Q: Explain why non-convex indifference curve has a corner solution instead of interior solution?
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Q: b) Define indifference curve and discuss the characteristics of an indifference curve.
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Q: The value in Y axis has changed from 14.94 to 10.98 and the value in X axis has changed from 9.12 to…
A: Change in Y is 3.96 Change in X is 6.83
Q: Draw an indifference map for each of the following functions. U(x,y) = x2y3 U (x, y) = 2x + 3y U…
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Q: J 4 a. Define an Indifference Curve (IC)
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Q: Consider the utility function U(x, y) = xy + x. Which of the following bundles is not on the same…
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Q: What are the three properties of indifference curves for two goods?
A: An indifference curve is a graph that displays possible pairings of two goods or commodities that,…
Q: Consider the following equation for an indifference curve: y = 20/x. At point A (2, 10), the MRS is?
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Q: A consumer always purchases 2 units of X with every 3 units of Y regardless of the prices of X and…
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Q: discuss the three assumptions of indifference curves.
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Q: The value in Y axis has changed from 13.54 to 11.78 and the value in X axis has changed from 9.96 to…
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Q: What are indifference curves?
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Q: Questions 1. Will's utility from vacations (91) and meals (92) is given by the function U(V, M) = 91…
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Q: Which are the three main assumptions of indifference curves? Please do the comparison with each…
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Q: How do we decide the amount we buy on the indifference curve? MU1/P1 = MU2/P2 %3D MU1/P1 = P2 MU1/P2…
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A: Indifference Curve: An indifference curve represents various combinations of two commodities that…
Q: Define indifference curve .
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Q: 2nd attempt Greg has the following utility function: u = x0.55x0.45. He has an income of $96.00, and…
A:
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- The value in Y axis has changed from 13.54 to 11.78 and the value in X axis has changed from 9.96 to 4.14, what is the slope of the indifference curve at this point? a. 0.30 b. -3.31 c. -8.01 d. 11.221) (15 points) A student has a lunch utility function U(S,P) = 8S + 3P, where S is the number of salads per month and P is the number of pizzas per month. The price of a salad is $5, the price of a pizza is 8, and his monthly income for lunch is $80. a) (5 pts.) Using the x-axis for S and the y-axis for P represent the indifference curves of the student corresponding to the levels of satisfaction U = 48, U = 72 U = 120. How does this student perceive pizzas and salads? b) (5 pts.) Find and draw the budget line of the student. Specify both the intercepts and the slope. In the same graphic, you should include the indifference curves from part (a). c) (5 pts.) Compute and represent graphically the equilibrium of the student (how many salads and pizzas he is likely to have per month). Your graph should include the budget line, the indifference curve, and the optimal consumption point.10
- Jane insists on consuming 4 bowls of yogurt with 2 bananas. If the price of banana is $1 per unit and the price of yogurt is $1 per bowl, then if Jane income is $m, the slope of the Engel curve for bananas will be (a) negatíve and constant. (b) negative and increasing. (c) zero. (d) positive and constant. (e) None of the above.Quantity of D 10 8 N 0 to 2 000 Refer to the budget line shown in the diagram. The absolute value of the slope of the budget line is Multiple Choice 4 6 8 10 Quantity of C two. one-half. five. ten. 20 10,981 AUG 22 < Prev 7 of 12 átv (@1. For each of the three utility functions below, find the substitution effect, the income effect, and the total effect that result when prices change from p = (2,1) to p' = (2,4). Assume the consumer has income I = 20. (a) Before doing any calculation, make an educated guess about the relative magnitude of the three substitution effects and the three income effects to be found below. (b) u(x1, x2) = x1 + x2. (c) u(x1, x2) = x1x2. (d) u(x1,x2) = min {x1,x2). (e) Rank the substitution effects and the income effects found above by their magnitude. To what extent do they conform to your guess?
- For each example listed, decide if the good is a normal good or an inferior good. Make sure you answer from the perspective of the individual or individuals doing the buying or consuming. Billy's mom increases his weekly allowance by %5. As a result, Billy increases the number of apps he downloads on his smartphone. Smartphone apps areRevenue R from the sale of x units of a product is found by multiplying the price by the number of items sold. (a) Factor the right side of R = 200x - x². R = (b) What is the expression for the price of the item? The consumer expenditure, in dollars, for a commodity is the product of its market price, p, and the number of units demanded, x. Suppose that for a certain commodity, the consumer expenditure is given by 9,000p - 150p². (a) Factor this in order to find an expression for the number of units demanded. (Simplify your answer completely.) x = units (b) Use (a) to find the number of units demanded when the market price is $33. x = units A company's average cost per unit when x units are produced is defined to be Total cost Average cost = Χ Suppose a company's average costs are given by 6000 Average cost = +35+0.2x. X Express the average-cost formula as a single fraction. Average cost = 3Exercise 1 A consumer's utility function is u(x, y) = x²y³ and the budget constraint is prx +Pyy ≤ w, where the parameters pr, Py and we are all strictly positive. (a) Solve the consumer's utility maximization problem. (b) Use the envelope theorem to estimate the change in the indirect utility function (i.e., the problem's value function) when the price py is changed to py + e, with e > 0.
- Calculate the marginal rate of substitution (MRS12) for the following utility function: U(91, 92) (1491 +692)³. What is the value of MRS12 at bundle (4, 8)? Please round your answer to two decimal places if necessary.Consider an economy with two goods, consumption c and leisure 1, and a representative consumer. The consumer is endowed with 24 hours of time in a day. A consumer's daily leisure hours are equal to 1 = 24-h where h is the number of hours a day the consumer chooses to work. The price of consumption p is equal to 1 and the consumer's hourly wage is w. The consumer faces an ad valorem tax on their earnings of 7 percent. The con- sumer also receives some exogenous income Y that does not depend on how many hours she works (e.g. an inheritance). The consumer's preferences over consumption and hours of work can be represented by the utility function U(c, h) = c-3h¹+, where 3 > 0 and p > 0 are parameters. 1+p2nd attempt Greg has the following utility function: u = x0.55x0.45. He has an income of $96.00, and he faces these prices: (P1, P2) (10.00, 8.00). Suppose that the price of x₁ increases by $1.00. Calculate the compensating variation for this price change. Give your answer to two decimals. $ =
