Consider the preferences represented by the following indifference curves. These preferences are (check all that apply - if there is not enough information to confirm that one of these applies, leave it unchecked). good 2 Select one or more: a. Strictly convex Ob. Monotone Oc. Convex Od. Strongly monotone e. None of the above good 1

Consider the preferences represented by the following indifference curves. These preferences are (check all that apply - if there is not enough information to confirm that one of these applies, leave it unchecked). good 2 Select one or more: a. Strictly convex Ob. Monotone Oc. Convex Od. Strongly monotone e. None of the above good 1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Revealed Preferences and Budget Constraint Analysis

Revealed means “Let Out,” and Preference means “Choice”; Choice Reveals Preference.

Question

Consider the preferences represented by the following indifference curves. These preferences are (check all
that apply - if there is not enough information to confirm that one of these applies, leave it unchecked).
good 2
Select one or more:
a. Strictly convex
b. Monotone
Oc. Convex
d. Strongly monotone
Oe. None of the above
good 1

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4
In the following budget constraint- indifference curve graph, Nikki has $170 to spend on tops and pants. a. What is the price of a top? $ What is the price of a pair of pants? $ b. Is Nikki making the optimum choice if she buys 4 tops and 2 pants? OA. Yes, this point is on the budget constraint. OB. No, the indifference curve going through this point is not tangent to Nikki's budget constraint. OC. No, the other point of intersection of the indifference curve and the budget constraint is the optimal choice. OD. Yes, the indifference curve going through this point is tangent to Nikki's budget constraint. L Tops 10- 6 9- 8- G 7- 6- 3- 2- 1- 13 5 Pants 7 8 9 10 11 12
Along an indifference curve, if the marginal rate of substitution is 3, then the consumer is willing to Select one: a. Give up 3 units of the good measured along they-axis for 1 unit of income, that is, $1 of income. b. Give up 3 units of the good measured along they-axis for 1 unit of the good measured along the x-axis. c. Pay $3 for one unit of the good measured along the y-axis d. Give up 1 unit of the good measured along the y-axis for 3 units of the good measured along the x-axis e. Pay $3 for one unit of the good measured along the x-axis
Show full work for part d) e) & f)
Please help - indifference curves
The utility-maximizing bundle of x and x2may, in some instances, be found at a point of tangency between the budget line and an indifference curve. In other instances, the utility-maximizing bundle will be found at a corner point-that is, where the quantity consumed of one good is zero. For which types of indifference curves shown below will the utility-maximizing bundle definitely be found at a corner point? Choose one or more: A. B. "C. D.