Can indifference curve be a straight line
WebTranscribed Image Text: 1. Multiple choice: Choose only one correct answere a) If a person's indifference curves can be represented as downward-sloping straight lines, … WebExpert Answer. Transcribed image text: 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. complements (but not perfect) D. substitutes (but not perfect)
Can indifference curve be a straight line
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WebJan 18, 2012 · By definition, in economics when we consider indifference curves, we say "more is better", that is the farther of the indifference curve is, the better. So we would always chose the … WebTerms in this set (39) An indifference curve represents bundles of goods that a consumer. A) views as equally desirable. B) ranks from most preferred to least preferred. C) refers to any other bundle of goods. D) All of the above. views as equally desirable. The principle that "More is better" results in indifference curves.
WebAnswer (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 … WebThus, the consumer’s indifference curves are perfectly insensitive to nuts and can be depicted as straight horizontal lines. A higher level of utility would be brought about by an increase in the consumption of ice cream only, thus indifference curve U 2 (corresponding to a higher level of consumption of ice cream) would be parallel to and ...
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. WebAn increase in income does not affect the slope of the budget line while a decrease in price does change the slope c. ... Indifference curves may intersect b. At a point of consumer equilibrium, the MRS equals 1 c. If income increases, a consumer will always consume more of a good d. None of the statements associated with this question are correct
WebDec 29, 2024 · Marginal rate of substitution (MRS) the the willingness of a consumer toward replace one good for another, as long as to new great is also satisfying.
WebDraw indifference curves to represent the following types of consumer preferences (put oranges on the x-axis and apples on the y-axis). Make sure to include arrows to indicate direction of preference. (Hint: Start with a bundle (say 10 units of each), and think about other bundles that give the consumer the same utility.) ... diagnosing adhd in young childrenWebIf a consumer is always indifferent between an additional one grapefruit or an additional two oranges, then when oranges are on the horizontal axis the indifference curves: A) will be straight lines with a slope of -1/2. B) will be straight lines with a slope of -1. C) will be straight lines with a slope of +1/2. diagnosing acute cholecystitisWebTwo commodities are perfect substitutes for each other – In this case, the indifference curve is a straight line, where MRS is constant. Two … diagnosing active tuberculosisWebExpert Answer. Transcribed image text: If a person's indifference curves can be represented as a straight line, the person views the goods as A. perfect complements … diagnosing adhd children testsWebAug 30, 2024 · Indifference Curve: An indifference curve represents a series of combinations between two different economic goods, between which an individual would be theoretically indifferent regardless of ... cineworld market capWebStudy with Quizlet and memorize flashcards containing terms like The assumption that preferences are complete requires the consumer, Assume that two baskets and lie on the same indifference curve. Assume that basket contains more of good than basket but less of good than basket. As the consumer moves down and to the right (from basket to … diagnosing adhd in 4 year oldWebtwo goods are perfect constitutes if the consumer is willing to substitute one good for another at a constant rate. perfect substitutes slope. the consumer only cares about the total number, thus the indifference curves are straight lines with a slope of -1. pf indifference curves have a constant slope. perfect complements. diagnosing adults with asperger\u0027s