You are expected to answer the following questions by yourself in advance of the tutorial. Starting from next week, your tutor will also explore with your group answers to the week's question on the Discussion Forum (please complete this by upm Monday each week; there are no extensions). 1) Assume the following table represents one of your indifference curves for free time and exam marks. a) Complete the following table using representative numbers that conform to the assumptions for indifference curves outlined in the lecture and textbook. One Indifference Curve Hours of free time 15 16 17 18 19 20 Exam marks 84 75 67 Marginal Rate of Substitution (MRS) 12 8 b) Explain the main ideas captured by this representation of an indifference curve. c) Draw the indifference curve on a graph, showing the different combinations of hours of free time and marks. On the horizontal axis put hours of free time and on the vertical axis put exam marks. 9,

You are expected to answer the following questions by yourself in advance of the tutorial. Starting from next week, your tutor will also explore with your group answers to the week's question on the Discussion Forum (please complete this by upm Monday each week; there are no extensions). 1) Assume the following table represents one of your indifference curves for free time and exam marks. a) Complete the following table using representative numbers that conform to the assumptions for indifference curves outlined in the lecture and textbook. One Indifference Curve Hours of free time 15 16 17 18 19 20 Exam marks 84 75 67 Marginal Rate of Substitution (MRS) 12 8 b) Explain the main ideas captured by this representation of an indifference curve. c) Draw the indifference curve on a graph, showing the different combinations of hours of free time and marks. On the horizontal axis put hours of free time and on the vertical axis put exam marks. 9,

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.13P

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A consumer has preferences over bundles of two goods with indifference curves defined by X2 = for k>0. (a) Find a utility function representing these preferences assuming that the consumer's pref- erences are monotone. (b) Give an example of a utility function representing non-monotone preferences with the same indifference curves. (c) Show that indifference curves of the form x2 = x + k for k € R cannot arise from monotone preferences.
b) Define indifference curve and discuss the characteristics of an indifferencecurve.
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Hi, I need some help with the attached question. It is taken from an optimisation problem set in my intermediate maths for economists course.
Eren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Calculate for the equivalent variation (EV) for the price change.
Eren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Suppose that the Department of Welfare wants to know how much should begiven to Eren to offset his change un utility due to the price increase of an expensivemeal. Calculate the compensative variation (CV).