Can indifference curves be straight
Webx2 = 0 when p2 > p1, x2 = m/p2 when p2 < p1, and anything between. 0 and m/p2 when p1 = p2. Suppose that indifference curves are described by straight lines with a. slope of −b. Given arbitrary prices and money income p1, p2, and m, what. will the consumer's optimal choices look like. The optimal choices will be x1 = m/p1 and x2 = 0 if p1/p2 ... WebApr 5, 2024 · The analysis of an Indifference Curve can be carried out on a simple two-dimensional graph. Each axis indicates a specific type of product. ... If two products can …
Can indifference curves be straight
Did you know?
WebSolution. Verified by Toppr. Correct option is A) A constant marginal rate of substitution would mean that the consumer will only be able to choose a equal number of both … WebThe Marginal Rate of Substitution is the amount of of a good that has to be given up to obtain an additional unit of another good while keeping the satisfaction the same. As …
WebAnswer (1 of 2): They certainly can be. Economists like working with concave utility functions, which are functions such that, for any constant \alpha between 0 and 1 and any two bundles of goods x and y: \displaystyle \alpha u(x) + (1 - \alpha) u(y) \leq u(\alpha x + (1 - \alpha) y) There are ... WebHistory. The theory of indifference curves was developed by Francis Ysidro Edgeworth, who explained in his 1881 book the mathematics needed for their drawing; later on, …
WebB) 1.67 cups of coffee. C) 1.0 cup of coffee. D) 1.25 cups of coffee. E) 0.75 cups of coffee. a. The magnitude of the slope of the budget line is the. A) relative price of the good measured on the vertical axis. B) relative price of the good measured on the horizontal axis. C) absolute price of the good measured on the horizontal axis. WebEnvision a graph with meat on the horizontal axis and vegetables on the vertical axis. A strict vegetarian would have indifference curves that are: right angles. diagonal straight lines. horizontal lines. upward sloping. vertical lines. rank the market basket more highly after the change. If a market basket is changed by adding more of at least ...
WebQuestion: If a person's indifference curves can be represented as a straight line, the person views the goods as A. perfect complements B. perfect substitutes C. …
WebFeb 22, 2024 · On indifference curves, substitute goods tend towards straight lines, while complementary goods tend towards right angles. ... By using an indifference curve, economists can visualize how a ... how addictive are stimulantsWebApr 5, 2024 · The analysis of an Indifference Curve can be carried out on a simple two-dimensional graph. Each axis indicates a specific type of product. ... If two products can be perfectly replaced with each other, the Indifference Curve turns out to be a straight line with a constant value of MRS. If two products are perfect complements of each other, say ... how addictive is ativanWebPeople cannot really put a numerical value on their level of satisfaction. However, they can, and do, identify what choices would give them more, or less, or the same amount of … how addictive are opiatesWebAnswer (1 of 3): Since indifference curves are maps of utility function, what you are really asking is: are there any goods for which marginal utility is constant? i.e. when consuming 100th good is as desirable as consuming … how addictive is krokodilhow many home invasions last yearWebStudy with Quizlet and memorize flashcards containing terms like An indifference curve represents bundles of goods that a consumer A) views as equally desirable. B) ranks from most preferred to least preferred. C) prefers to any other bundle of goods. D) All of the above, If a consumer prefers Apples to Bananas and prefers Bananas to Citrus Fruit, in … how addictive are cocaine and crack cocaineWebI1 and I2 are two of the community indifference curves of Canada. Which of the following can be inferred from this figure? Canada has a comparative advantage in the production of wheat. ... Constant cost production-possibility curves are straight lines and usually lead to complete specialization under free trade. Under free trade, bowed-out ... how addictive is heroin on first use