Exercise B1 What point is preferred along an indifference Curve?

Question

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Answer 1

Textbook Question

Chapter B, Problem 1RQ

Exercise B1

What point is preferred along an indifference Curve?

Expert Solution & Answer

To determine

To find:

The point preferred in an indifference curve.

Explanation of Solution

All the points on an indifference curve give the same level of utility or satisfaction to the consumer and each point shows the combination of two goods. A consumer will be in equilibrium at a point where his budget line is tangent to the indifference curve. At this point, the slope of the indifference curve and slope of the budget line is the same. Any point above or outside indifference curve are not affordable for the consumer’s budget. While any point below the indifference curve is inferior to his approach.

So, the consumer will prefer a point on the indifference curve which is tangent to the budget line.

Economics Concept Introduction

Indifference Curve: This is a curve which represents all the possible combinations of two commodities which provides equal satisfaction to the consumer. The consumer has no reason to prefer one combination to any other combination on the same curve. So, this curve is the indifference curve.

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HW Ch5 Calculate the daily total revenue when the market price is $180, $160, $140, $120, $100, $80, $60, and $40 per bippitybop. Then, use the green point (triangle symbol) to plot the daily total revenue against quantity corresponding to these market prices on the following graph. 2 @ 3840 3520 3200+ 2880 2560+ 2240 TOTAL REVENUE (Dollars) 1920 1600 1280 960 + 640+ 0 0 8 16 24 32 40 48 56 64 72 80 QUANTITY (Bippitybops per day) Total Revenue ? According to the midpoints formula, the price elasticity of demand between points A and B on the initial graph is approximately . Suppose the price of bippitybops is currently $60 per bippitybop, shown as point A on the initial graph. Because the price elasticity of demand between points A and B is , a $20-per-bippitybop decrease in price will lead to MacBook Air in total revenue per day. F2 80 F3 #3 $ 4 5 6 F6 < F7 * 8 & 27 DII 8 F8 F9 F10 61 0 W E R T Y U 0 P S D LL F G H J K L

Answer 2

Textbook Question

Chapter B, Problem 1RQ

Exercise B1

What point is preferred along an indifference Curve?

Expert Solution & Answer

To determine

To find:

The point preferred in an indifference curve.

Explanation of Solution

All the points on an indifference curve give the same level of utility or satisfaction to the consumer and each point shows the combination of two goods. A consumer will be in equilibrium at a point where his budget line is tangent to the indifference curve. At this point, the slope of the indifference curve and slope of the budget line is the same. Any point above or outside indifference curve are not affordable for the consumer’s budget. While any point below the indifference curve is inferior to his approach.

So, the consumer will prefer a point on the indifference curve which is tangent to the budget line.

Economics Concept Introduction

Indifference Curve: This is a curve which represents all the possible combinations of two commodities which provides equal satisfaction to the consumer. The consumer has no reason to prefer one combination to any other combination on the same curve. So, this curve is the indifference curve.

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Answer 3

Textbook Question

Chapter B, Problem 1RQ

Exercise B1

What point is preferred along an indifference Curve?

Expert Solution & Answer

To determine

To find:

The point preferred in an indifference curve.

Explanation of Solution

All the points on an indifference curve give the same level of utility or satisfaction to the consumer and each point shows the combination of two goods. A consumer will be in equilibrium at a point where his budget line is tangent to the indifference curve. At this point, the slope of the indifference curve and slope of the budget line is the same. Any point above or outside indifference curve are not affordable for the consumer’s budget. While any point below the indifference curve is inferior to his approach.

So, the consumer will prefer a point on the indifference curve which is tangent to the budget line.

Economics Concept Introduction

Indifference Curve: This is a curve which represents all the possible combinations of two commodities which provides equal satisfaction to the consumer. The consumer has no reason to prefer one combination to any other combination on the same curve. So, this curve is the indifference curve.

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Answer 4

Textbook Question

Chapter B, Problem 1RQ

Exercise B1

What point is preferred along an indifference Curve?

Expert Solution & Answer

To determine

To find:

The point preferred in an indifference curve.

Explanation of Solution

All the points on an indifference curve give the same level of utility or satisfaction to the consumer and each point shows the combination of two goods. A consumer will be in equilibrium at a point where his budget line is tangent to the indifference curve. At this point, the slope of the indifference curve and slope of the budget line is the same. Any point above or outside indifference curve are not affordable for the consumer’s budget. While any point below the indifference curve is inferior to his approach.

So, the consumer will prefer a point on the indifference curve which is tangent to the budget line.

Economics Concept Introduction

Indifference Curve: This is a curve which represents all the possible combinations of two commodities which provides equal satisfaction to the consumer. The consumer has no reason to prefer one combination to any other combination on the same curve. So, this curve is the indifference curve.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

To find:

The point preferred in an indifference curve.

Explanation of Solution

All the points on an indifference curve give the same level of utility or satisfaction to the consumer and each point shows the combination of two goods. A consumer will be in equilibrium at a point where his budget line is tangent to the indifference curve. At this point, the slope of the indifference curve and slope of the budget line is the same. Any point above or outside indifference curve are not affordable for the consumer’s budget. While any point below the indifference curve is inferior to his approach.

So, the consumer will prefer a point on the indifference curve which is tangent to the budget line.

Economics Concept Introduction

Indifference Curve: This is a curve which represents all the possible combinations of two commodities which provides equal satisfaction to the consumer. The consumer has no reason to prefer one combination to any other combination on the same curve. So, this curve is the indifference curve.

Answer 8

Expert Solution & Answer

To determine

To find:

The point preferred in an indifference curve.

Explanation of Solution

All the points on an indifference curve give the same level of utility or satisfaction to the consumer and each point shows the combination of two goods. A consumer will be in equilibrium at a point where his budget line is tangent to the indifference curve. At this point, the slope of the indifference curve and slope of the budget line is the same. Any point above or outside indifference curve are not affordable for the consumer’s budget. While any point below the indifference curve is inferior to his approach.

So, the consumer will prefer a point on the indifference curve which is tangent to the budget line.

Economics Concept Introduction

Indifference Curve: This is a curve which represents all the possible combinations of two commodities which provides equal satisfaction to the consumer. The consumer has no reason to prefer one combination to any other combination on the same curve. So, this curve is the indifference curve.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

To find:

The point preferred in an indifference curve.

Answer 12

Explanation of Solution

All the points on an indifference curve give the same level of utility or satisfaction to the consumer and each point shows the combination of two goods. A consumer will be in equilibrium at a point where his budget line is tangent to the indifference curve. At this point, the slope of the indifference curve and slope of the budget line is the same. Any point above or outside indifference curve are not affordable for the consumer’s budget. While any point below the indifference curve is inferior to his approach.

So, the consumer will prefer a point on the indifference curve which is tangent to the budget line.

Answer 13

Economics Concept Introduction

Indifference Curve: This is a curve which represents all the possible combinations of two commodities which provides equal satisfaction to the consumer. The consumer has no reason to prefer one combination to any other combination on the same curve. So, this curve is the indifference curve.

Answer 14

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Exercise B1 What point is preferred along an indifference Curve?

Explanation of Solution

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