With the help of indifference curve diagram (gift goods on one axis and all other goods on the other) to illustrate that one is better off receiving cash grant than a gift
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Q: M1
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
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Q: Given the Indifference Curve, answer the ff: 1. The following points all yield the same happiness,…
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Pls help with below homework.
With the help of indifference curve diagram (gift goods on one axis and all other goods on the other) to illustrate that one is better off receiving cash grant than a gift
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- Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to confirm the choice of phone minutes and round trips that maximize Jeremys utility.In ordinal Utility approach, let a consumer's utility function is given by TU X³Y. If price of X is 2 birr and price of Y is 3 birr and if budget of the consumer is 100 birr for consumption of X and Y. then what are the utility maximization X and Y?Explain in detail what are indifference curve and what do they measure. What are the three characteristics of indifference curves, MRS, slope of IC curve and the budget line? What is budget line and what does it represent. Explain with formula and graph what is the point of consumer’s equilibrium, conditions of the equilibrium, and how does this equilibrium shift in (a) Income effect; (b) Price effect and (c) substitution effect and explain the pivot under price effect and under substitution effect. What is PCC?
- If we have money, we buy goods and services to satisfy our needs. In economics, thesatisfaction that we get from the consumption of goods and services is called utility. Usea utility graph to explain what happen to the utility when you keep on increasing thenumber of units consumed. Also explain what happens to the utility when you keep onincreasing the number of units consumed. Also explain what happens to the additionalutility (i.e. additional satisfaction) when you increase your consumption by one unitLaw of Diminishing Marginal UtilityIndicate whether each of the following statements is true or false. Explain why.A.The law of diminishing marginal utility states that as an individual increases consumption of a given product within a set period of time, the utility gained from consumption eventually declines.B.Marginal utility measures the added satisfaction derived from a one-unit increase in consumption, holding consumption of other goods and services constant.C.When goods are relatively scarce, the law of diminishing marginal utility means that the added value of another unit of goods will be small in relation to the added value of another unit of services.D.The law of diminishing marginal utility gives rise to a downward-sloping demand curve for all goods and services.Explain consumer equilibrium with the help of indifference curve. Also discuss the practical importance of law of diminishing and law of equi-marginal utility?
- Explain the cardinal and ordinal utility approach ? P Type here to searcha. A consumer is willing to trade 3 units of x for 1 unitof y when she has 6 units of x and 5 units of y. She isalso willing to trade in 6 units of x for 2 units of y whenshe has 12 units of x and 3 units of y. She is indifferentbetween bundle (6, 5) and bundle (12, 3). What is theutility function for goods x and y? Hint: What is theshape of the indifference curve?b. A consumer is willing to trade 4 units of x for 1 unitof y when she is consuming bundle (8, 1). She is alsowilling to trade in 1 unit of x for 2 units of y when sheis consuming bundle (4, 4). She is indifferent betweenthese two bundles. Assuming that the utility function isCobb–Douglas of the form U (x, y) = xα y β, where α andβ are positive constants, what is the utility function forthis consumer?c. Was there a redundancy of information in part (b)? Ifyes, how much is the minimum amount of informationrequired in that question to derive the utility function?What is consumer's equilibrium to cardinal approach?
- can explain this question? tq A consumer decides not to buy a VCR when her income is $20,000. However, when her income rises to $30,000, she decides to buy one. In a single diagram, draw the budget lines and indifference curves to illustrate this situation (assume the VCR costs $300 in both time periods). Be sure to label your diagram completely.5. Assume that a consumer has two goods to consume: medical care services (M) and all other goods (X). She has monthly income of $4500. A. Assume that the price of medical care services is $500 per unit and price of other goods is $100 per unit. Plot the budget constraint of this consumer. Remember to label the origin, axis, and intercepts on your graph. B. Plot how the budget constraint would change when the price of other goods increases to $150 per unit. How did the relative price change? Briefly explain. C. Did the consumer better off or worse off after the change in price? Please explain. (Hint: you can use concepts of income effects and substitution effects to answer this question). D. From your own experience, how did your budget constraints most recently change? Was it due to the COVID pandemic?5. Explain how consumer equilibrium is reached using marginal utility analysis.
