Which of the following best describes the basic idea of revealed preference?O A. If a consumer is asked which of two market baskets he or she prefers, the consumer will always be able to reveal his or her preference.O B. If a consumer prefers market basket A to market basket B and also prefers market basket B to market basket C, then the consumer has revealed that heor she prefers market basket A to market basket C.OC. Ifa consumer chooses one market basket over another, then the consumer must prefer the chosen market basket.O D. If a consumer chooses one market basket over another, and if the chosen market basket is more expensive than the alternative, then the consumer mustprefer the chosen market basket.

When talking about consumer preferences, there might be miscommunication or possibility that the…

Answered: Which of the following best describes…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Refer to the accompanying figure to answer the questions that follow. Marginal Utility 30 25 20 15 10 5. 1. 3 4 6-7 Number of Cupcakes Total utility is maximized at the: O A) first cupcake. B) seventh cupcake. C) sixth cupcake. D) eighth cupcake
Time left Thomas has utility U = min{3C, T) over cookies and tea. Suppose the price of cookies declines by 1 dollar. How much of the change in demand for tea is a substitution effect? In other words, what is (change h7/change gr)? O a. 0 O b. 1/4 O c. 1/3 O d. 2/3 O e. 3/4 O f. 1 Clear my choice Which of the following utility functions does not represent the same preferences as U(x, y) = x2y/2? O a. U(x, y) = xy O b. U(x, y) = In(x) + In(y) O c. U(x, y) = In(x y) O d. U(x, y) = x2 + yl/2 Clear my choice (we haven" this and yo not expect BOANIT 8
4please answer part a and b of quesrion #1
4. Consider a society that has three individuals - 1,2 and 3 - and three alternatives - x, y and z. The society has a preference aggregation rule F. In year 2007, the profile of individual preferences were as follows: 1 2 3 X y Z y Z V It is known that the rule F satisfies Completeness, Transitivity, Anonymity, Unanimity and Independence of Irrelevant Alternatives. Also, in year 2007, F ranked x strictly above y. Now, we are in year 2008. The individual preferences have changed to: 1 2 3 Z y y X Z Z y X x (a) How does the society rank between y and x in 2008? Why? (b) How does the society rank between x and z in 2008? Why? (c) How does the society rank between y and z in 2008? Why? (d) What were the social preferences over all three alternatives in 2007?
Please help any info will help
. Answer all parts (a) (c) of this question. (a) Consider an agent whose preferences over any couple (x1, x2), where 2₁ ER+ and x2 € R+, e.g., apples and oranges, is such that she prefers the bundle that is closest to having the same number of apples and oranges. Write a utility function u: R² → R+ which represent these preferences. A politician remarks "Our recent increases in the wage rates of teachers has been a total suc- cess! The shortage of teachers has been reduced drastically. Another, similar wage increase should eliminate this shortage entirely" (b) Explain and illustrate in a diagram what is meant by "income effects" and "substitution effects" of a wage rate change. (c) Explain and illustrate how you would model the labour supply decision of a potential teacher. Do you agree that the wage increase will increase the labour supply in this case? Carefully outline the assumptions underlying your argument.
A date with Alex costs you $100 and gives you an additional 1000 units of utility. A date with Kelly costs you $200 and an additional 4,000 units of utility. Based only on the information you have, using the theory of rational choice, you most likely would: O be indifferent between the two dates O go on a date with Alex because the marginal utility per dollar is the greater of the two O go on a date with Kelly O go on a date with Alex
Solve this pls
The table shows the total utility data for products S and T. Assume that the prices of S and T are $3 and $5, respectively, and that consumer income is $22. Total Utility 12 27 39 48 51 Units of S 1 2 3 4 5 Multiple Choice If the price of T decreases from $5 to $3, while the price of S and the consumer's income stay the same, then the utility-maximizing combination is such that the quantity of T increases from 2 to 4. Units of T 1 2 3 4 5 Total Utility 20 35 45 50 52 decreases from 4 to 3. stays the same at 2, but the consumer has $1 remaining. increases from 2 to 3, but the consumer has $1 remaining.

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