U1, U2 and U3 represent Ariadne's indifference curves at different levels of utility. Suppose sheprefers any bundle on curve U3 to any bundle on U2 and prefers any bundle on U2 to any bundle onU1. Select the correct answer from the options below:YU1 U2U3XIf 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 oncurve U1.

A utility curve is a graphical representation of a person's preferences. It lists combinations of…

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: U1 U2 U3

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: U1 U2 U3

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.7P

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12 There are two goods and John's preferences can be represented by u: R²0 R given by u(x) = x₁³x2³. His income and price of the two goods are given by (M, P1, 20 P2) = (12, 1, 2). Which 2 of the following 8 options are false: In John's optimal bundle, he consumes the same amount of good 1 as good 2. If we change John's utility function to u(x) = x + then John's optimal bundle remains unchanged. At John's optimal bundle, the slope of the budget constraint equals the slope of the indifference curve. In John's optimal bundle, he spends the same amount on good 1 as good 2. John's preferences satisfy local non-satiation. At John's optimal bundle, his bang per buck of good 1 equals his bang per buck of good If we change John's utility function to u(x) = In (17 +x₁x₂) then John's optimal bundle remains unchanged. If we change the budget set to (M, P1, P2) = (24, 2, 4) then John's optimal bundle remains unchanged.
I need it in words not handwritten and don't copy from other place pleaseee do itttt your own solution
| 3.9. Preferences and indifference curves. Assume that a con- sumer purchases only two goods, x and y. Based on the information 3.3. THE MARGINAL RULE 124 in each of the following questions, sketch a plausible set of indiffer- ence curves (that is, draw at least two curves, and indicate the direc- tion of higher utility). (a) Nomis enjoys muffins (x) and chai latte (y) if they are consumed together. (b) Tra likes chocolate (x) but he hates broccoli (y). (c) Aras likes steaks (x) but she doesn't care one way or the other about apples (y). (d) Fernando always buys five Polo-shirts (x) with every pair of jeans (y).
b) Diana has $6.00 to spend. She has the option to buy two goods: sandwiches and peppermints. Sandwiches cost $3.00 each, and peppermints cost $1.00 per pack. The table below shows the utility Diana derives from consuming sandwiches or peppermints at various levels of consumption. In the table below, compute and complete the table below for the marginal utility per dollar for each level of consumption. i. Peppermints Marginal Utility/ $ (price per each) Sandwiches Marginal Utility Marginal utility/ $ (price per each) Marginal Utility Units purchased 1 9 15 9 3 4 4 n/a n/a 1 ii. Briefly explain how Diana should spend the first $3.00.
todd is a cattle rancher in june and july he spent his clothing budget on jeans and cowboy hats. each pair of jeans cost $56 and each hat cost $41. At Todd's optimal choice, his marginal utility from the last pair of jeans purchased is 592. This means that his marginal utility from the last cowboy hat purchased is: Round the final answer to the whole number
Mike is a jellyfish wrangler. In June and July he spent his budget on fish tanks and wet suits. Each fish tank cost $50 and each wet suit cost $100. At Mike's optimal choice, his marginal utility from the last fish tank purchased is 200. This means that his marginal utility from the last wet suit purchased is:
Suppose Ann likes both pancakes (P) and waffles (W) and is always willing to substitute two pancakes for one waffle. Write the equation for Ann's utility function. a. b. Given her preferences, what is Ann's marginal utility of an additional pancake? What is Ann's marginal utility of an additional waffle? с. With pancakes on the horizontal axis and waffles on the vertical axis, graph Ann's indifference curves for U=4 and U=8. d. What is Ann's marginal rate of substitution?
Suppose that the consumer maximizes his utilitysuch that the marginal utilities of goods X and Y are; MUx=80-16x MUy=60-2y Let Px=P4,Py=P2 and I=P80 Find the utility maximizing quantities X and Y
the second part of the question
Assume that the price of oranges is $2 and the price of starfruit is $1. You have $10 of income to spend on both goods, and you intend to spend the entire amount. Note that MU stands for marginal utility. Q of oranges MU from oranges Q of starfruit MU of starfruit 1 $20 1 $12 2 16 2 10 3 12 3 8 4 8 4 6 5 4 5 4 6 0 6 2 To maximize total utility, you would consume _____ oranges and _____ starfruit. Question 25…
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