Draw two indifference curves for two goods (Gunna Tickets and Drake Tickets) at utility level 2 and 4. These indifference curves must reflect a consumer who has preferences that follow more is better, transitivity, completeness/rankability, and not a preference for variety. That is, the consumer has a "preference for no variety". Make sure to label each axis and indifference curve to reflect these preferences.

Draw two indifference curves for two goods (Gunna Tickets and Drake Tickets) at utility level 2 and 4. These indifference curves must reflect a consumer who has preferences that follow more is better, transitivity, completeness/rankability, and not a preference for variety. That is, the consumer has a "preference for no variety". Make sure to label each axis and indifference curve to reflect these preferences.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Multiple Choice 1. 8 2. 10 3. 12.50 4. 14 5. 15
A consumer’s budget set for two goods (X and Y) is 500 ≥ 4X + 5Y.a. The budget set is illustrated below. What are the values of A and B? The horizontal axis is labeled Good X. The vertical axis is labeled Good Y. A line begins at a point on the vertical axis goes down to the right and ends at a point on the horizontal axis. A = B = b. Does the budget set change if the prices of both goods double and the consumer’s income also doubles? multiple choice Yes, it rotates clockwise Yes, it shifts out from the origin Yes, it shifts in toward the origin No, it does not change c. Given the equation for the budget set, what are the prices of the two goods?Good X: $ Good Y: $ What is the consumer’s income? $
Alex has a monthly budget of $72 to spend on commuter train trips and organic pasta. Each train trip costs $12; each box of pasta costs $6. Alex's preferences for train travel and pasta are represented by the indifference map on the following page. a. Determine which line (L1, L2, L*, or L**) represents Alex's budget constraint. b. Find their utility-maximizing bundle (E1, E2, e*, or e**). How many train trips will Alex take? Suppose the state government establishes a program to subsidize public transportation for commuters, such that each train trip now costs Alex $6. c. Determine which line (L1, L2, L*, or L**) represents Alex's new budget constraint. d. Find their new utility-maximizing bundle (E1, E2, e*, or e**). Determine how many train trips Alex will now take. e. Find the size and direction (positive or negative) of the substitution effect for train trips. As part of your answer, state the starting quantity and ending quantity of train trips that represent this effect. f. Find…
There are two goods x and y. A consumer has utility function U(x, y) min(2x, y). The price of good x is 2 and the price of good y is 1. The consumer has income | = 10. 1) Draw a graph that illustrates the indifference curves for the consumer. 2) Find the bundle of goods (x * y*) that maximizes the consumer's utility subject to the budget constraint.
Raj consumes wine and face masks. His utility function is U(w,m) = min{vw,m}, where w and m are non-negative numbers. 3.1 Carefully draw a diagram showing three of Raj's indifference curves corresponding to utility levels U=1, U=3, and U=5. Your diagram should have wine on the horizontal axis and face masks on the vertical axis.3.2 If the price of masks is $10 and the price of wine is $3 per liter and if Raj is consuming 4 liters, of wine, how many masks is he consuming?
Roger regards lettuce (L) as a bad and tomatoes (T) as a satiation good. His preferences are non-convex. Placing lettuce on the x-axis and tomatoes on the y-axis, graph two of his indifference curves. Indicate the direction in which utility is increasing.
Mr. Rational has $27 that he plans to spend purchasing 5 units of good X (priced at $3 per unit) and 6 units of good Y (priced at $2 per unit). The marginal utility of the fifth unit of X is 30, and the marginal utility of the sixth unit of Y is 18. If Mr. Rational is a utility maximizer, he should: buy less of X and more of Y. buy X and Y in the quantities indicated. buy more of X and less of Y. not buy anything. buy less of X and even lesser than that of Y.
Abby likes tangerines and oranges. For every 4 tangerines, Abby is equally happy to consume 2 oranges instead. Let x be the number of tangerines, and y be the number of oranges. (a) Graph Abby's indifference curves. Make sure to mark the direction of the preferred bundles. (b) Write down an utility function that represents Abby's preferences. (c) Write down another utility function different from your previous answer but also represents Abby's preferences. (d) Does v(x, y) = x + y represent Abby's preferences? (e) What is Abby's marginal rate of substitution? (f) Suppose that px = 1, py = 1, and Abby has Y = 20. Compute Abby's optimal consumption bundle.
U1, U2 and U3 represent Ariadne's indifference curves at different levels of utility. Suppose she prefers any bundle on curve U3 to any bundle on U2 and prefers any bundle on U2 to any bundle on U1. Select the correct answer from the options below: Y U1 U2 U3 X If Ariadne's preferences satisfy completeness, then she prefers any bundle on curve U3 to any bundle on curve U1. If Ariadne's preferences satisfy transitivity, then she prefers any bundle on curve U3 to any bundle on curve U1. O If Ariadne's preferences satisfy transitivity, then she prefers a bundle on curve U1 to any bundle on curve U3. If Ariadne's preferences satisfy completeness, then she is indifferent between bundles on curve U3 and bundles on curve U1.
Given above are some of the indifference curves for a student who consumes Burritos and Pizzas and the relevant budget line. Equilibrium is defined as the maximum utility or satisfaction given the consumer’s budget. The consumer has more indifference curves above I3, below I1, and between I1 and I2 and between I2 and I3. Out of all the indifference curves the consumer has, only I1, I2, and I3 are shown. The given budget line touches I2 at the point where I2 touches the y-axis (Burritos axis). a) If the price of Pizzas decreased and the price of Burritos remained unchanged, would the quantity of Burritos consumed at equilibrium increase or decrease compared to the equilibrium point A in the graph given above? (b) If the price of Pizzas increased and the price of Burritos remained the same, would the consumer equilibrium point be different from point A or the same as point A in the graph given above?
Consider a consumer whose utility function is (screenshot) Assume the consumer has income $120 and initially faces the prices px=$1 and py=$1. How much x and y would they buy? Draw the budget constraint and the demands.
Suppose a consumer views two goods, X and Y, as perfect complements. Her utility function is given by U = MIN [2X, Y]. Sketch the graph of the consumers indifference curve that goes through the bundle X = 7 and Y = 8. Put the amount of Y on the vertical axis, and the amount of X on the horizontal axis. Which of the three assumptions that we made about consumer preferences is violated in this case?