Assuming a consumer is facing only two commodities. Show in graphs the shapes of the indifference...

Assuming a consumer is facing only two commodities. Show in graphs the shapes of the indifference curve when she has the case: a. Both commodities are bad b. One good and one bad

Expert Solution

** Please upvote if answer was helpful **

Below are two case studies representing each question

a)

b)

Rahul Sunny answered 1 year ago

(a) Draw the indifference curve for a consumer for two goods X and Y, assuming the...

(a) Draw the indifference curve for a consumer for two goods X and Y, assuming the consumer does not get any utility, positive or negative, from good X. (b) Would such a consumer move to a higher indifference curve with a “buy one, get one free” deal on good X? Please explain. You do not have to draw this on the graph, you just have to give an explanation.

Show a complete graph for both of these shocks. You will need two graphs only, one...

Show a complete graph for both of these shocks. You will need two graphs only, one for each shock. The graphs have to show: -The new short run equilibrium immediately after the shock occurs. -The new long run equilibrium. -The transition to the long run equilibrium. Properly label your axes and the curves in your graphs, and use arrows to show shifts of curves and the change in the price level and output. The two shocks are: The stock market...

Give a simple and brief proof that a utility-maximizing consumer would exchange the two commodities up...

Give a simple and brief proof that a utility-maximizing consumer would exchange the two commodities up to the point where the relative ratio of marginal utility between the two commodities exactly equals their relative price ratio. What is General Equilibrium? Explain how Walras set up the general equilibrium model. What difficulties did Walras have in order to demonstrate that market forces could automatically correct disequilibrium? (Relate it to Jehovan's demonstration in the History of Economic Though)

Please answer in excel only. How do I create the graphs in excel and show the...

Please answer in excel only. How do I create the graphs in excel and show the data. Discuss the following two cost functions: TC=20+4Q TC=20+2Q+0.5Q^2 a) Calculate all cost curves and plot these curves on graphs. Total Cost Total Fixed Cost Total Variable Cost Average Total Cost Average Fixed Cost Average Variable Cost Marginal Cost b) In each case, indicate the point at which diminishing returns occur. (For question a), compute the required costs and plot the curves for quantities...

The nation of Sunland produces only two commodities, silk and petroleum, using labor and capital. The...

The nation of Sunland produces only two commodities, silk and petroleum, using labor and capital. The labor constraint with full employment for this country is given by the equation 4S + 5P = 10, while the capital constraint with full employment is given by 5S + 8P = 12. a) What would be the slope of the labor constraint and the capital constraint? b) Which of the commodities is relatively capital intensive? And why

Show with graphs. In a two country model with two goods and two factors, both countries...

Show with graphs. In a two country model with two goods and two factors, both countries have the same technology and equal endowments of labour. Although tastes are homothetic in each country, the ratio of capital- intensive to labour intensive consumption is lower for the foreign than for the home country, at any common set of product prices. If the home country exports capital-intensive good in this equilibrium, which country must have the smaller endowment of capital?

Discuss the theory of consumer choice among two goods using indifference curves and the budget constraint....

Discuss the theory of consumer choice among two goods using indifference curves and the budget constraint. Show how the result changes if the price of a good changes.

Assume: 1) only two commodities can be produced in each nation; 2) the table represents the...

Assume: 1) only two commodities can be produced in each nation; 2) the table represents the maximum output of each good the nation can produce in a given time period if it uses all its resources in the production of that good; and 3) there is a constant trade-off between production of the two goods in each nation (i.e. a constant opportunity cost). Maximum production of smart phones (units) Maximum production of tables (units) South Korea 90 60 Indonesia 50...

a. State the law of diminishing marginal utility. Provide an example. b. Show that two indifference...

a. State the law of diminishing marginal utility. Provide an example. b. Show that two indifference curves cannot cross. c. Describe how to construct a demand curve for a good using indifference curves and a budget line.

Please only show me the graphs I know the answers to below problems. I don't know...

Please only show me the graphs I know the answers to below problems. I don't know how to do the graphs correctly. 1. A radar unit is used to measure speeds of cars on a motorway. The speeds are normally distributed with a mean of 90 km/hr and a standard deviation of 10 km/hr. What is the probability that a car picked at random is travelling at more than 100 km/hr? 2. For a certain type of computers, the length...

Question