Question
In: Economics
What do indifference curves do? a. They never cross more than once. b. They never cross....
What do indifference curves do?
| a. | They never cross more than once. | b. | They never cross. |
|---|---|---|---|
| c. | They always cross. | d. | They are straight lines. |
An indifference set can be best described as which of the following?
| a. | It is a set of consumption choices, each yielding the same utility. | b. | It is a set of demand curves. |
|---|---|---|---|
| c. | It is a set of consumption choices, each yielding a different level of utility. | d. | It is a set of consumption choices dependent on the interaction between income and prices. |
Julian only purchases coffee and Almond Joy bars. How will the income effect be shown if the price of an Almond Joy bar decreases?
| a. | A shift outward of the budget line using the new values for prices | b. | A shift outward of the budget line using the initial values for prices |
|---|---|---|---|
| c. | A pivot inward of the position of the constraint to reflect the changed price | d. | A pivot outward of the position of the constraint to reflect the changed price |
Burritos and beer are normal goods for Lucy. What would you expect to see if the price of beer decreases?
| a. | A movement along the initial indifference curve and Lucy buys less burritos. | b. | A movement along the initial indifference curve and Lucy buys more burritos. |
|---|---|---|---|
| c. | A movement to a higher indifference curve and Lucy will buy more burritos. | d. | A movement to a lower indifference curve and Lucy will buy less burritos. |
Solutions
Rahul Sunny answered 8 months agoRelated Solutions
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a) True
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Q 7 (a) What are indifference curves? (b) State and explain the properties of indifference curves....
Q 7
(a) What are indifference curves?
(b) State and explain the properties of indifference curves.
(c) Explain what factors could cause shift in the budget
line.
Transitivity implies that indifference curves cannot cross
Transitivity implies that indifference curves cannot cross
1. If indifference curves cross, this violates the assumption: A. that consumer preferences are complete. B....
1. If indifference curves cross, this violates the
assumption:
A. that consumer preferences are complete.
B. that more of a good is better.
C. of transitivity.
D. that the more a consumer has of a particular good, the less
she is willing to give up of something else to get even more of
that good.
2. The concept of utility makes it possible to calculate.
A. how much happier one bundle of goods makes a person than some
other bundle...
Problem 1: (a) Prove the statement: Two indifference curves can never intersect.(b) Verify whether the following...
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(a) Prove the statement: Two indifference curves can never
intersect.(b) Verify whether the following statement is true or
false, and explain.
A choice is rational when an indifference curve is tangent to
the budget line.
(c) I am indifferent between consuming bundle 1 (5 cookies and
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also indifferent between bundle 2 and bundle 3 (9 cookies and 15
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What do indifference curves look like for preferences exhibiting satiation?
What do indifference curves look like for preferences
exhibiting satiation?
3) What are indifference curves and how do they relate to a budget line? Draw a...
3) What are indifference curves and how do they relate to a
budget line? Draw a graph showing 3 indifference curves and a
budget line. Why is one indifference curve tangent to the budget
line? What happens if the price of one good changes? (15 points).
please give all three graphs.
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isoprofit curves with worker indifference curves to explain how two
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What is the hedonic theory of wage differentials? Combine isoprofit curves with worker indifference curves to...
What is the hedonic theory of wage differentials? Combine
isoprofit curves with worker indifference curves to explain how two
workers with identical stocks of human capital might be different
wage rates.
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