MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
11th Edition
ISBN: 9781264207718
Author: Colander
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 19.A, Problem 4QE
To determine
The shape of the indifference curve if the law of diminishing
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The marginal utility for the third unit of X is 60 utils, and the marginal utility for the fourth unit of X is 45 utils. If the law of diminishing marginal utility holds, what is the minimum total utility?
Consider the following utility function, utility = x·y. The equation for the indifference curve at utility level equal to 20 is?
given the utility function U=150X+40X2-X3, derive average and marginal utility functions, Find the value of X at which total utility is maximum, and the value of X at which average utility is maximum?
Chapter 19 Solutions
MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
Ch. 19.1 - Prob. 1QCh. 19.1 - Prob. 2QCh. 19.1 - Prob. 3QCh. 19.1 - Prob. 4QCh. 19.1 - Prob. 5QCh. 19.1 - Prob. 6QCh. 19.1 - Prob. 7QCh. 19.1 - Prob. 8QCh. 19.1 - Prob. 9QCh. 19.1 - Prob. 10Q
Ch. 19.A - Prob. 1QECh. 19.A - Prob. 2QECh. 19.A - Prob. 3QECh. 19.A - Prob. 4QECh. 19 - Prob. 1QECh. 19 - Prob. 2QECh. 19 - Prob. 3QECh. 19 - Prob. 4QECh. 19 - Prob. 5QECh. 19 - Prob. 6QECh. 19 - Prob. 7QECh. 19 - Prob. 8QECh. 19 - Prob. 9QECh. 19 - Prob. 10QECh. 19 - Prob. 11QECh. 19 - Prob. 12QECh. 19 - Prob. 13QECh. 19 - Prob. 14QECh. 19 - Prob. 15QECh. 19 - Prob. 16QECh. 19 - Prob. 1QAPCh. 19 - Prob. 2QAPCh. 19 - Prob. 3QAPCh. 19 - Prob. 4QAPCh. 19 - Prob. 5QAPCh. 19 - Prob. 1IPCh. 19 - Prob. 2IPCh. 19 - Prob. 3IPCh. 19 - Prob. 4IPCh. 19 - Prob. 5IPCh. 19 - Prob. 6IPCh. 19 - Prob. 7IPCh. 19 - Prob. 8IPCh. 19 - Prob. 9IPCh. 19 - Prob. 10IP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Define Utility in your own words.What does it mean to have diminishing marginal utility?How do you calculate Marginal Utility? What is the formula?What is the utility maximizing rule? Describe the rule as well as state it mathematically.arrow_forwardIf marginal utility is declining but still positive, total utility is increasing. True or false and explainarrow_forwardWhat are indifference curves?arrow_forward
- The law of diminishing marginal utility states that?arrow_forwardMr. Abdulah enjoys Coffee (K) and Tea (T), with the utility function U (K, T) = 3K + 4T. Question: - Draw the Indifference curve for Abdul if the price of a cup of coffee and tea is Rp. 3, - and Mr. Abdulah has Rp. 12, - to spend on Coffee and Tea. - If the coffee price drops to Rp. 2, - what effect will it have? He wants his satisfaction equal to the original Utility curve. Show it in the picture!arrow_forwardIn analyzing consumer behavior, economists often use indifference curves to represent a consumer's preferences. An indifference curve shows the different combinations of two goods that provide the same level of utility to the consumer. As one moves along an indifference curve, the level of utility reflecting the consumer's willingness to trade off one good for another while maintaining the same level of overall satisfaction. A) Increases B) Decreases C) Remains constant D) Fluctuates unpredictablyarrow_forward
- How does a rational consumer choose his optimal consumption bundle? Graphically show the Indifference curve and the budget line to explain your argument.arrow_forwardWhen marginal utility is decreasing but positive, total utility is a increasing at a decreasing rate b increasing at an increasing rate c decreasing at a decreasing rate d decreasing at an increasing ratearrow_forwardExplain how consumer equilibrium is reached using marginal utility analysis.arrow_forward
- Claire has the following utility function: ??(??, ??) = ??1/2??1/2 and faces the budget constraint: ?? = ?????? + ??????. Suppose ?? = 120, ???? = 1 and ???? = 4. Find the optimal ??and ??arrow_forwardReid has the following utility function. U = 24m1/3d1/2 where U is Reid's total utility, m is the quantity of muffin consumed, and d is the quantity of doughnuts consumed. Reid has a budget of $25.00, the price of a muffin is $1.00 and the price of doughnut is $0.60. a. What is the equation for the marginal utility Reid receives from muffins? What is the equation for the marginal utility Reid receives from doughnuts? b. What is the equation for the marginal rate of substitution, MRSm,d? Is Reid's utility function subject to the law of the diminishing marginal rate of substitution? c. Reid has a $15.00 gift card that can only be used to buy doughnuts and $10.00 cash to spend on either of the two goods. The price of a doughnut is $0.60 and the price of a muffin is $1.00. Using equations, determine, determine Reid's optimal combination of muffins and doughnuts given the cash and gift card.arrow_forwardSuppose that the only items you consume are bread and wine. If the price of bread were to increase tomorrow, and if simultaneously your income were to increase by just enough so that you were equally as happy tomorrow as today, what would happen to the level of your consumption of bread ? Illustrate your answer with indifference curvesarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning