Determine preference of consumer.

Question

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Answer 1

Question

Chapter 4, Problem 1DQ

To determine

Determine preference of consumer.

Expert Solution & Answer

Explanation of Solution

The principle of declining MRS (marginal rate of substitution) implies that the consumer’s indifference curve are convex to the origin. In this case, the consumption bundle C lies between the consumption bundles A and B. It can be connected through a straight line. That means, C lies above the indifference curve that contains the consumption bundles A and B. Hence, C prefers both A and B. Thus, the answer is that consumer prefer C to A and B.

Economics Concept Introduction

Indifference curve: The indifference curve is a mathematical representation of the combination of all of the consumption bundles that provide a consumer with the same utility.

Marginal rate of substitution (MRS): The MRS is the slope of the indifference curve, which measures the willingness of a consumer to trade one good for the other.

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Answer 2

Question

Chapter 4, Problem 1DQ

To determine

Determine preference of consumer.

Expert Solution & Answer

Explanation of Solution

The principle of declining MRS (marginal rate of substitution) implies that the consumer’s indifference curve are convex to the origin. In this case, the consumption bundle C lies between the consumption bundles A and B. It can be connected through a straight line. That means, C lies above the indifference curve that contains the consumption bundles A and B. Hence, C prefers both A and B. Thus, the answer is that consumer prefer C to A and B.

Economics Concept Introduction

Indifference curve: The indifference curve is a mathematical representation of the combination of all of the consumption bundles that provide a consumer with the same utility.

Marginal rate of substitution (MRS): The MRS is the slope of the indifference curve, which measures the willingness of a consumer to trade one good for the other.

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Answer 3

Question

Chapter 4, Problem 1DQ

To determine

Determine preference of consumer.

Expert Solution & Answer

Explanation of Solution

The principle of declining MRS (marginal rate of substitution) implies that the consumer’s indifference curve are convex to the origin. In this case, the consumption bundle C lies between the consumption bundles A and B. It can be connected through a straight line. That means, C lies above the indifference curve that contains the consumption bundles A and B. Hence, C prefers both A and B. Thus, the answer is that consumer prefer C to A and B.

Economics Concept Introduction

Indifference curve: The indifference curve is a mathematical representation of the combination of all of the consumption bundles that provide a consumer with the same utility.

Marginal rate of substitution (MRS): The MRS is the slope of the indifference curve, which measures the willingness of a consumer to trade one good for the other.

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Answer 4

Question

Chapter 4, Problem 1DQ

To determine

Determine preference of consumer.

Expert Solution & Answer

Explanation of Solution

The principle of declining MRS (marginal rate of substitution) implies that the consumer’s indifference curve are convex to the origin. In this case, the consumption bundle C lies between the consumption bundles A and B. It can be connected through a straight line. That means, C lies above the indifference curve that contains the consumption bundles A and B. Hence, C prefers both A and B. Thus, the answer is that consumer prefer C to A and B.

Economics Concept Introduction

Indifference curve: The indifference curve is a mathematical representation of the combination of all of the consumption bundles that provide a consumer with the same utility.

Marginal rate of substitution (MRS): The MRS is the slope of the indifference curve, which measures the willingness of a consumer to trade one good for the other.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 4, Problem 1DQ

To determine

Determine preference of consumer.

Expert Solution & Answer

Explanation of Solution

The principle of declining MRS (marginal rate of substitution) implies that the consumer’s indifference curve are convex to the origin. In this case, the consumption bundle C lies between the consumption bundles A and B. It can be connected through a straight line. That means, C lies above the indifference curve that contains the consumption bundles A and B. Hence, C prefers both A and B. Thus, the answer is that consumer prefer C to A and B.

Economics Concept Introduction

Indifference curve: The indifference curve is a mathematical representation of the combination of all of the consumption bundles that provide a consumer with the same utility.

Marginal rate of substitution (MRS): The MRS is the slope of the indifference curve, which measures the willingness of a consumer to trade one good for the other.

Answer 6

Chapter 4, Problem 1DQ

To determine

Determine preference of consumer.

Expert Solution & Answer

Explanation of Solution

The principle of declining MRS (marginal rate of substitution) implies that the consumer’s indifference curve are convex to the origin. In this case, the consumption bundle C lies between the consumption bundles A and B. It can be connected through a straight line. That means, C lies above the indifference curve that contains the consumption bundles A and B. Hence, C prefers both A and B. Thus, the answer is that consumer prefer C to A and B.

Economics Concept Introduction

Indifference curve: The indifference curve is a mathematical representation of the combination of all of the consumption bundles that provide a consumer with the same utility.

Marginal rate of substitution (MRS): The MRS is the slope of the indifference curve, which measures the willingness of a consumer to trade one good for the other.

Answer 7

Chapter 4, Problem 1DQ

To determine

Determine preference of consumer.

Answer 8

Expert Solution & Answer

Explanation of Solution

The principle of declining MRS (marginal rate of substitution) implies that the consumer’s indifference curve are convex to the origin. In this case, the consumption bundle C lies between the consumption bundles A and B. It can be connected through a straight line. That means, C lies above the indifference curve that contains the consumption bundles A and B. Hence, C prefers both A and B. Thus, the answer is that consumer prefer C to A and B.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Indifference curve: The indifference curve is a mathematical representation of the combination of all of the consumption bundles that provide a consumer with the same utility.

Marginal rate of substitution (MRS): The MRS is the slope of the indifference curve, which measures the willingness of a consumer to trade one good for the other.

Answer 12

Ch. 4 - Prob. 1DQ Ch. 4 - Prob. 2DQ Ch. 4 - Prob. 3DQ Ch. 4 - Prob. 4DQ Ch. 4 - Prob. 1P Ch. 4 - Prob. 2P Ch. 4 - Prob. 3P Ch. 4 - Prob. 4P Ch. 4 - Prob. 5P Ch. 4 - Prob. 6P

Determine preference of consumer.

Determine preference of consumer.

Explanation of Solution

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Chapter 4 Solutions