Question 14Which of the following is NOT a property of indifference curves?A) Higher Indifference Curves are Preferred to Lower OnesBDIndifference Curves are Downward SlopingIndifference Curves are Bowed InwardIndifference Curves Can Intersect

An indifference curve shows all possible combinations of goods that provides equal satisfaction to…

Question 14 Which of the following is NOT a property of indifference curves? A) Higher Indifference Curves are Preferred to Lower Ones B Indifference Curves are Downward Sloping C Indifference Curves are Bowed Inward D) Indifference Curves Can Intersect

Question 14 Which of the following is NOT a property of indifference curves? A) Higher Indifference Curves are Preferred to Lower Ones B Indifference Curves are Downward Sloping C Indifference Curves are Bowed Inward D) Indifference Curves Can Intersect

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.4P

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Suppose that the following utility function is given U(X,Y) = -X-ywhich of the following is correct? X is a good and Y is a bad and indifference curve is negatively sloped. Both X and Y are goods and indifference curve is negatively sloped. Both X and Y are bads and indifference curve is negatively sloped, OYisa good and X is a bad and indifference.curve is positively sloped.
Why is the consumer’s MRS equal to the price ratio at the optimal consumption point? Givea graphical interpretation of this fact in XY space (hint: what do we know about the indifferencecurves and the budget line?).
Question 3Draw indifference curves for the following sets of preferences and indicate the direction inwhich the individuals’ satisfaction (or utility) is increasing. Be specific about slopes when itis necessary. Assume for both parts (a) & (b) that soft drinks are measured on x-axis andhamburgers on the y-axis. (a) Mary always gets twice as much satisfaction from an extra hamburger as she does froman extra soft drink. (b) Bob loves soft drinks but dislikes hamburgers.
Can you help me answer these 2 questions
please only do: if you can teach explain each partc: what does it mean? can you show graphs: For these to be optimal choices with such preferences, the indifference curve through a must lie entirely on or above the budget line associated with (p, w), and simi- larly for r' for the budget line associated with (p', w'). how do you know this:Because each of these bundles lies below the other budget line, this implies that the indifference curves must cross, which is impossible. can you show graphs: note that (3,1) is a conver combination of x and x', so for conver preferences must be weakly preferred to x (the less preferred bundle between a and a'). But then the bundle (3,5/3) must be strictly preferred z, contradicting that is optimal given the initial budget set
¦ What can be the implications of a positively sloping indifference curve?
Question 4 Which of the following is NOT true about indifference curves? O They are downward sloping O They do not cross O The one is closer to the origin is preferable to indifference curves further from the origin O They are bowed in toward the origin
Refer to the indifference curve/budget line diagram below in Figure 7. Given that a consumer initially faces budget line (BL1) and ICI, and thus, by choosing consumption point c, is able to achieve the optimal utility level. If the price of x (Px) decreases, then the substitution effect (SE) is the movement from _-. effect (IE) is the movement from and the income y a IC2 d IC: BLI Figure 7 O a. from b to a; and a to d. O b. from a to b; and b to c. O c. No correct answwers. O d. from c to d; and d to a.
Suppose that the following utility function is given (x,Y) xY. Which of the following is correct? OYis a good and X is a bad and indifference curve is positively sloped. X is a good and Y is a bad and indifference curve is negatively sloped. O Both X and Y are bads and indifference curve is negatively sloped. Both X and Y are goods and indifference curve is negatively sloped
ECON Questions 5, 6, 7, and 8 How to solve and answer these economics questions showed in the screenshot?
4. If we have the utility function, U(x)=(x−7)^2, and we know that there is an indifference set around x = 4 and an upper contour set of x = 6. How to graphically represent this function? I'm confused about how to draw the upper contour set on the graph? I know the concept that upper contour is the area over the convex line, but don't know how to put it on the graph. Could you draw a simple graph to help me identify the upper contour?
MCQ question 6 Thandi consumes pancakes and apples. Thandi's utility increases with the consumption of pancakes, but her utility neither increases nor decreases with the consumption of apples. Assuming apples are on the x-axis and pancakes are on the y-axis, what do Thandi's indifference curves look like? O A. downward-sloping lines B. L-shaped lines O C. horizontal lines D. upward-sloping lines from the origin O E. vertical lines