The hypothetical indifference curves for S by locating the bundles on curves where it is assumed that goods are ordinary.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter EMD, Problem 1CYU

a)

To determine

The hypothetical indifference curves for S by locating the bundles on curves where it is assumed that goods are ordinary.

a)

Expert Solution

Explanation of Solution

As it is assumed that goods are ordinary then the following graph shows the hypothetical indifference curves for S by locating the bundles on curves.

Krugman's Economics For The Ap® Course, Chapter EMD, Problem 1CYU

In this graph, the horizontal axis represents the number of chocolate kisses and the vertical axis shows the number of licorice drops.

There are two indifference curves on the graph which show the location of bundles, A, B, C, and D. A and B bundles are shown on one line where the quantity of chocolate kisses is 1 for A, 3 for B and the number of licorice drops is 3 for A and 2 for B. The second line represents the bundles of C and D where D point shows the 3 units of chocolate kisses and 2 units of drops while point D indicates 1 unit of drops and 2 units of chocolate kisses.

Economics Concept Introduction

Introduction: The graphical representation of a combination of products that offer a similar level of satisfaction to consumers renders them indifferent is called an indifference curve.

b)

To determine

The shaded area that represents H's Cutlery's initial economic profit and explains what will happen to it in the long run.

b)

Expert Solution

Explanation of Solution

If the number of utils is not known and the quantity which is more would be considered better then, the ranking of S will move as B at the top because this is the bundle at which the quantity of both products is higher and when the more consumption is gained then it will be the highest better. Therefore, the rank will be considered as B at the highest, then A and C will deliver moderate consumption which will be in the middle but D would be at the lowest in ranking as it involves low quantity consumption.

Economics Concept Introduction

Introduction: The graphical representation of a combination of products that offer a similar level of satisfaction to consumers renders them indifferent is called an indifference curve.

Want to see more full solutions like this?

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

Answer 2

Question

Chapter EMD, Problem 1CYU

a)

To determine

The hypothetical indifference curves for S by locating the bundles on curves where it is assumed that goods are ordinary.

a)

Expert Solution

Explanation of Solution

As it is assumed that goods are ordinary then the following graph shows the hypothetical indifference curves for S by locating the bundles on curves.

Krugman's Economics For The Ap® Course, Chapter EMD, Problem 1CYU

In this graph, the horizontal axis represents the number of chocolate kisses and the vertical axis shows the number of licorice drops.

There are two indifference curves on the graph which show the location of bundles, A, B, C, and D. A and B bundles are shown on one line where the quantity of chocolate kisses is 1 for A, 3 for B and the number of licorice drops is 3 for A and 2 for B. The second line represents the bundles of C and D where D point shows the 3 units of chocolate kisses and 2 units of drops while point D indicates 1 unit of drops and 2 units of chocolate kisses.

Economics Concept Introduction

Introduction: The graphical representation of a combination of products that offer a similar level of satisfaction to consumers renders them indifferent is called an indifference curve.

b)

To determine

The shaded area that represents H's Cutlery's initial economic profit and explains what will happen to it in the long run.

b)

Expert Solution

Explanation of Solution

If the number of utils is not known and the quantity which is more would be considered better then, the ranking of S will move as B at the top because this is the bundle at which the quantity of both products is higher and when the more consumption is gained then it will be the highest better. Therefore, the rank will be considered as B at the highest, then A and C will deliver moderate consumption which will be in the middle but D would be at the lowest in ranking as it involves low quantity consumption.

Economics Concept Introduction

Introduction: The graphical representation of a combination of products that offer a similar level of satisfaction to consumers renders them indifferent is called an indifference curve.

Want to see more full solutions like this?

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

Answer 3

Question

Chapter EMD, Problem 1CYU

a)

To determine

The hypothetical indifference curves for S by locating the bundles on curves where it is assumed that goods are ordinary.

a)

Expert Solution

Explanation of Solution

As it is assumed that goods are ordinary then the following graph shows the hypothetical indifference curves for S by locating the bundles on curves.

Krugman's Economics For The Ap® Course, Chapter EMD, Problem 1CYU

In this graph, the horizontal axis represents the number of chocolate kisses and the vertical axis shows the number of licorice drops.

There are two indifference curves on the graph which show the location of bundles, A, B, C, and D. A and B bundles are shown on one line where the quantity of chocolate kisses is 1 for A, 3 for B and the number of licorice drops is 3 for A and 2 for B. The second line represents the bundles of C and D where D point shows the 3 units of chocolate kisses and 2 units of drops while point D indicates 1 unit of drops and 2 units of chocolate kisses.

Economics Concept Introduction

Introduction: The graphical representation of a combination of products that offer a similar level of satisfaction to consumers renders them indifferent is called an indifference curve.

b)

To determine

The shaded area that represents H's Cutlery's initial economic profit and explains what will happen to it in the long run.

b)

Expert Solution

Explanation of Solution

If the number of utils is not known and the quantity which is more would be considered better then, the ranking of S will move as B at the top because this is the bundle at which the quantity of both products is higher and when the more consumption is gained then it will be the highest better. Therefore, the rank will be considered as B at the highest, then A and C will deliver moderate consumption which will be in the middle but D would be at the lowest in ranking as it involves low quantity consumption.

Economics Concept Introduction

Introduction: The graphical representation of a combination of products that offer a similar level of satisfaction to consumers renders them indifferent is called an indifference curve.

Want to see more full solutions like this?

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

Answer 4

Question

Chapter EMD, Problem 1CYU

a)

To determine

The hypothetical indifference curves for S by locating the bundles on curves where it is assumed that goods are ordinary.

a)

Expert Solution

Explanation of Solution

As it is assumed that goods are ordinary then the following graph shows the hypothetical indifference curves for S by locating the bundles on curves.

Krugman's Economics For The Ap® Course, Chapter EMD, Problem 1CYU

In this graph, the horizontal axis represents the number of chocolate kisses and the vertical axis shows the number of licorice drops.

There are two indifference curves on the graph which show the location of bundles, A, B, C, and D. A and B bundles are shown on one line where the quantity of chocolate kisses is 1 for A, 3 for B and the number of licorice drops is 3 for A and 2 for B. The second line represents the bundles of C and D where D point shows the 3 units of chocolate kisses and 2 units of drops while point D indicates 1 unit of drops and 2 units of chocolate kisses.

Economics Concept Introduction

Introduction: The graphical representation of a combination of products that offer a similar level of satisfaction to consumers renders them indifferent is called an indifference curve.

b)

To determine

The shaded area that represents H's Cutlery's initial economic profit and explains what will happen to it in the long run.

b)

Expert Solution

Explanation of Solution

If the number of utils is not known and the quantity which is more would be considered better then, the ranking of S will move as B at the top because this is the bundle at which the quantity of both products is higher and when the more consumption is gained then it will be the highest better. Therefore, the rank will be considered as B at the highest, then A and C will deliver moderate consumption which will be in the middle but D would be at the lowest in ranking as it involves low quantity consumption.

Economics Concept Introduction

Introduction: The graphical representation of a combination of products that offer a similar level of satisfaction to consumers renders them indifferent is called an indifference curve.

Want to see more full solutions like this?

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

Answer 5

Chapter EMD, Problem 1CYU

a)

To determine

The hypothetical indifference curves for S by locating the bundles on curves where it is assumed that goods are ordinary.

a)

Expert Solution

Explanation of Solution

As it is assumed that goods are ordinary then the following graph shows the hypothetical indifference curves for S by locating the bundles on curves.

Krugman's Economics For The Ap® Course, Chapter EMD, Problem 1CYU

In this graph, the horizontal axis represents the number of chocolate kisses and the vertical axis shows the number of licorice drops.

There are two indifference curves on the graph which show the location of bundles, A, B, C, and D. A and B bundles are shown on one line where the quantity of chocolate kisses is 1 for A, 3 for B and the number of licorice drops is 3 for A and 2 for B. The second line represents the bundles of C and D where D point shows the 3 units of chocolate kisses and 2 units of drops while point D indicates 1 unit of drops and 2 units of chocolate kisses.

Economics Concept Introduction

Introduction: The graphical representation of a combination of products that offer a similar level of satisfaction to consumers renders them indifferent is called an indifference curve.

b)

To determine

The shaded area that represents H's Cutlery's initial economic profit and explains what will happen to it in the long run.

b)

Expert Solution

Explanation of Solution

If the number of utils is not known and the quantity which is more would be considered better then, the ranking of S will move as B at the top because this is the bundle at which the quantity of both products is higher and when the more consumption is gained then it will be the highest better. Therefore, the rank will be considered as B at the highest, then A and C will deliver moderate consumption which will be in the middle but D would be at the lowest in ranking as it involves low quantity consumption.

Economics Concept Introduction

Introduction: The graphical representation of a combination of products that offer a similar level of satisfaction to consumers renders them indifferent is called an indifference curve.

Answer 6

Chapter EMD, Problem 1CYU

a)

To determine

The hypothetical indifference curves for S by locating the bundles on curves where it is assumed that goods are ordinary.

a)

Expert Solution

Explanation of Solution

As it is assumed that goods are ordinary then the following graph shows the hypothetical indifference curves for S by locating the bundles on curves.

Krugman's Economics For The Ap® Course, Chapter EMD, Problem 1CYU

In this graph, the horizontal axis represents the number of chocolate kisses and the vertical axis shows the number of licorice drops.

There are two indifference curves on the graph which show the location of bundles, A, B, C, and D. A and B bundles are shown on one line where the quantity of chocolate kisses is 1 for A, 3 for B and the number of licorice drops is 3 for A and 2 for B. The second line represents the bundles of C and D where D point shows the 3 units of chocolate kisses and 2 units of drops while point D indicates 1 unit of drops and 2 units of chocolate kisses.

Economics Concept Introduction

Introduction: The graphical representation of a combination of products that offer a similar level of satisfaction to consumers renders them indifferent is called an indifference curve.

Answer 7

Chapter EMD, Problem 1CYU

a)

To determine

The hypothetical indifference curves for S by locating the bundles on curves where it is assumed that goods are ordinary.

Answer 8

a)

Expert Solution

Explanation of Solution

As it is assumed that goods are ordinary then the following graph shows the hypothetical indifference curves for S by locating the bundles on curves.

Krugman's Economics For The Ap® Course, Chapter EMD, Problem 1CYU

In this graph, the horizontal axis represents the number of chocolate kisses and the vertical axis shows the number of licorice drops.

There are two indifference curves on the graph which show the location of bundles, A, B, C, and D. A and B bundles are shown on one line where the quantity of chocolate kisses is 1 for A, 3 for B and the number of licorice drops is 3 for A and 2 for B. The second line represents the bundles of C and D where D point shows the 3 units of chocolate kisses and 2 units of drops while point D indicates 1 unit of drops and 2 units of chocolate kisses.

Answer 9

a)

Expert Solution

Answer 10

a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Economics Concept Introduction

Introduction: The graphical representation of a combination of products that offer a similar level of satisfaction to consumers renders them indifferent is called an indifference curve.

Answer 13

b)

To determine

The shaded area that represents H's Cutlery's initial economic profit and explains what will happen to it in the long run.

b)

Expert Solution

Explanation of Solution

If the number of utils is not known and the quantity which is more would be considered better then, the ranking of S will move as B at the top because this is the bundle at which the quantity of both products is higher and when the more consumption is gained then it will be the highest better. Therefore, the rank will be considered as B at the highest, then A and C will deliver moderate consumption which will be in the middle but D would be at the lowest in ranking as it involves low quantity consumption.

Economics Concept Introduction

Introduction: The graphical representation of a combination of products that offer a similar level of satisfaction to consumers renders them indifferent is called an indifference curve.

Answer 14

b)

To determine

The shaded area that represents H's Cutlery's initial economic profit and explains what will happen to it in the long run.

Answer 15

b)

Expert Solution

Explanation of Solution

If the number of utils is not known and the quantity which is more would be considered better then, the ranking of S will move as B at the top because this is the bundle at which the quantity of both products is higher and when the more consumption is gained then it will be the highest better. Therefore, the rank will be considered as B at the highest, then A and C will deliver moderate consumption which will be in the middle but D would be at the lowest in ranking as it involves low quantity consumption.

Answer 16

b)

Expert Solution

Answer 17

b)

Expert Solution

Answer 18

Expert Solution

Answer 19

Economics Concept Introduction

Introduction: The graphical representation of a combination of products that offer a similar level of satisfaction to consumers renders them indifferent is called an indifference curve.

Answer 20

Ch. EMD - Prob. 1CYU Ch. EMD - Prob. 2CYU Ch. EMD - Prob. 3CYU Ch. EMD - Prob. 1MCQ Ch. EMD - Prob. 2MCQ Ch. EMD - Prob. 3MCQ Ch. EMD - Prob. 4MCQ Ch. EMD - Prob. 5MCQ Ch. EMD - Prob. 1FRQ Ch. EMD - Prob. 2FRQ

The hypothetical indifference curves for S by locating the bundles on curves where it is assumed that goods are ordinary.

The hypothetical indifference curves for S by locating the bundles on curves where it is assumed that goods are ordinary.

Explanation of Solution

The shaded area that represents H's Cutlery's initial economic profit and explains what will happen to it in the long run.

Explanation of Solution

Want to see more full solutions like this?

Chapter EMD Solutions