Find the marginal rate of commodity substitution for the utility functionU = 2/x + 6/x ,and hence state whether the indifference map consists of conveX curves, concavecurves or straight lines.а.MRCSx2the indifference curve is convex.= -3b.MRCS3x2the indifference curve is straight line.X1MRCS31 X1the indifference curve is concave.= -x2d.MRCS3 x1the indifference curve is concave.е.3x2MRCSthe indifference curve is convex.%3DX1

The indifference curve shows the combination of two goods in which the consumer is indifferent. It…

Find the marginal rate of commodity substitution for the utility function U = 2/x1 + 6/x2 , %3D and hence state whether the indifference map consists of convex curves, concave curves or straight lines. а. MRCS =- x2 X1 the indifference curve is convex. MRCS = 3x2 the indifference curve is straight line. %3D X1 С. MRCS = the indifference curve is concave. x2 d. MRCS = 3 the indifference curve is concave. x2 e. MRCS 3x2 the indifference curve is convex. x1

Find the marginal rate of commodity substitution for the utility function U = 2/x1 + 6/x2 , %3D and hence state whether the indifference map consists of convex curves, concave curves or straight lines. а. MRCS =- x2 X1 the indifference curve is convex. MRCS = 3x2 the indifference curve is straight line. %3D X1 С. MRCS = the indifference curve is concave. x2 d. MRCS = 3 the indifference curve is concave. x2 e. MRCS 3x2 the indifference curve is convex. x1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Bundle A (q1=1, q2=8) and bundle B (q1=6, q2=2) are on the same indifference curve for an individual. The slope of the indifference curve at bundle A is MRS=−2 and the slope of the indifference curve at bundle B is MRS=−1/4. Suppose the individual has $10 to spend (y=10) on a bundle of the goods. Which set of prices would the individual prefer to face: (p1=1& p2=2) or (p1=2 & p2=1)? A. They are indifferent to the two different sets of prices B. They prefer a price of $1 for good #1 and a price of $2 for good #2 C. They prefer a price of $2 for good #1 and a price of $1 for good #2
Can you provide solutions for d-h? Thank you!
Q1. For each of the utility functions below, show whether the indifference curve for U = 8 is convex or not by showing whether the MRS is diminishing or not as x increases. a. U (x, y) = x + 2y b. U (x, y) = x³y² 1 c. U (x, y) = x² + 2y d. U (x, y) x² + y² =
Please answer the all ,I will give instant upvote A) True or false: The marginal utility of good 1, that is, MU1, must be diminishing in x1. B) True or false: Two different indifference curves cannot intersect. C) If the marginal rate of substitution becomes more negative, then the indifference curves become a. flatter b. steeper c. flatter or steeper D) True or false: With a linear utility function and a linear budget set, the solution to the consumer's problem will generally be a corner solution, except in special knife-edge cases.
4) A convex indifference curve diagram has movies on the vertical axis and sodas on the horizontal. As the consumption of sodas increases and movies decreases (moving southeast along an indifference curve) the marginal rate of substitution of sodas A) rises. B) falls. C) does not change. D) probably changes, but more information is needed to determine if it rises or falls.
Oswald Odd consumes only goods 1 and 2. His utility function is U(x1, x2) = (x1x2) + min(x1, x2). Each of Oswald's indifference curves is Select one: a. L-shaped. b. is a diamond-shaped figure consisting of four line segments. c. is smooth and has no kinks. d. made up of three line segments with slopes 2, 1, and 1/2. e. made up of two line segments with slopes 2 and 1/2.
Que Robert's utility function is U(x, y) = 2/T + y. In every graph for this question, set y in the vertical axis and z in the horizontal axis. (a) Obtain the marginal rate of substitution MRS. Obtain the equation of the indifference curves for Ū = 2 and Ū = 4 (solving for y as a function of 1). Draw these indifference curves, identifying the intersections with each of the axes. (b) Suppose p, = 2 and Robert's income is M = 6. In a new graph, show the total, income and substitution effects (on the demand of r) of a drop in the price of z from p, = 4 to Pz = 2. (c) Now, the store where Robert goes for shopping has changed the prices to p, = 2 and py = 6, however, it also has a new special offer: for any amount of Y that Robert buys, he gets the same amount of X for free. Robert's income is M = 6. Draw Robert's budget line. Write down the equation of this line. Find Robert's utility-maximising bundle. (d)(d.1) Arthur's income is M = 6 and he goes to the same store as Robert. His utility…
Consider a consumer with utility function u(x1, x2) = min{4 min{x1, x2}, x1 + x2} (a) Draw indifference curves passing through points (2, 2), (1, 2) and (4, 2). Make sure you correctly determine kink points. What properties of the preferences can you deduce from the shape of indifference curves? (b) When X = R2 +, does UMP have a solution when p1 = p2 = 0? What property of the preference relation did you use to get your answer? (c) Assume that prices are such that p1, p2 2 0 and that p` > 0 for some `e {1, 2} (i.e. the price of at least one good is positive). Derive Walrasian demand. What are the prices for which Walrasian demand is single-valued?