n indifference curve,

Q: If both good 1 and good 2 are bads, will the indifference curve have a positive or a negative slope?…

A: An indifference curve is a graphical representation in economics that shows all the combinations of…

Q: Please draw the indifference curve of u(x1,x2) = max {x1,x2} in the graph. Also please try to make…

A: We have utility function  u(x1,x2) = max {x1,x2}

Q: T/F Explain If preference is monotonic but not strongly monotonic, indifference curves are upward…

A: The indifference curve is based on the ordinal utility analysis of Hicks and Allen. It represents…

Q: Is the indifference curve of U(x1,x2)=max(x1,x2) considered to be the curve for a perfect complement…

A: The utility function for perfect complements is given by: U(x1, x2) = min (x1, x2). Suppose a…

Q: 1. Suppose a utility function is given by u(x₁, x2) = 2√√x₁ + 4x₂. (a) Specify the equation of the…

A: Utility function: u(x1,x2)=2x1+4x2          ...... (1) The optimal consumption bundle is (9,4) and…

Q: Define indifference map in not more than 2 lines

A: Before getting to the definition of indifference map we must first understand what is indifferent…

Q: Explain why most indifference curve are convex??

A: In economics the indifference curve is usually denoted as the contour line merely where the value of…

Q: Draw the indifference curves for nickels and dimes. Would they ever have a non-constant slope

A: Indifference shows the combination of two goods and services which provide the same utility. It is…

Q: Abhishek's utility function is: U = min {2x- y, 2y–x} %3D Which letter resembles Abhishek’s…

A: Utility: - Utility is the satisfaction derived by any consumer from consuming a good or service.

Q: Question 6 Recall that the MRS at a consumption bundle (x₁, x2) is defined as negative the slope of…

A: MRS is the marginal rate of substitution which is the rate at which one good is substituted for…

Q: A consumer always purchases 2 units of X with every 3 units of Y regardless of the prices of X and…

A: Given  The consumer always purchases 2 units of good X with every 3 units of good Y regardless of…

Q: The properties of indifference curves can be described as :    a. Lower indifference curves are less…

A: A graphical representation of a combination of products that gives a consumer a similar level of…

Q: Why indifference curves never intersect. Prove graphically?

A: IC(indifference curve) shows us the various combination of two products/goods where the buyer is…

Q: A convex indifference curve implies what type of behavior? diminishing marginal utility…

A: Indifference curve are defined as the locus of the points with same utility level at each point.

Q: 1. Briefly Explain why convex preferences mean that "averages are preferred to extremes."

A: Convex preferences refer to a idea in economics and decision idea where people exhibit a desire for…

Marginal Rate of Technical Substitution

MRTS reaches a manufacturer when a part of the product is lowered to sustain the manufacturing level when the other part is extended. It is the level of the quantity that is lowered when one extra volume is used, and the output is unchanged.

Preferences and Utility Analysis

Before understanding what is preference and utility analysis, it is very important to understand the terms preference and utility separately.