Indifference curves cannot be concave to the origin because:
A. Consumers generally will prefer to have more of a good than less of a good.
B. The satisfaction consumers get from consuming additional units of a good declines.
C. Consumers must give up more of one good to obtain more of another good.
D. The substitution effect holds across indifference curves.
Indifference curves cannot be concave to the origin because:
A. Consumers generally will prefer to have more of a good than less of a good.
B. The satisfaction consumers get from consuming additional units of a good declines.
C. Consumers must give up more of one good to obtain more of another good.
D. The substitution effect holds across indifference curves.
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Related questions
Microeconomics Four-part multiple choice question with an explanation. Give a short explanation for each part regarding how your answer is computed or why your answer is correct.
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Part A. |
Para mi volunteers at a homeless shelter. It takes a lot of her time, and thus she sometimes takes off time from her job to do the volunteer work. Parami's behavior can be explained by: |
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Part B. |
Indifference curves cannot be concave to the origin because: |
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Part C. |
Marginal utility analysis and indifference curve analysis are both used to: |
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Part D. |
Indifference curves: |
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budget line
marginal utility
complete property of preferences
market demand
consumption bundle
substitution effect
Giffen good
total effect
income effect
transitive property of preferences
indifference curves
utility
the marginal rate of substitution
utility function
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1. |
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The satisfaction or benefit that consumers receive from consuming goods or services.
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2. |
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A particular combination of specific quantities of goods or services |
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3. |
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Consumers can rank all conceivable bundles of goods or services |
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4. |
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If A is preferred to B, and B is preferred to C, then A is always preferred to C. |
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5. |
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Equation showing a consumerâs perception of the total utility forthcoming from consuming each bundle of goods and services. |
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6. |
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A set of consumption bundles each and every one of which provides a consumer with exactly the same level of total utility. |
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7. |
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The number of units of Y that must be given up for total utility to remain the same when one more unit of X is consumed. |
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8. |
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The addition to total utility attributable to consuming one more unit of a good, holding the consumption of all other goods constant. |
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9. |
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The line showing all bundles of goods that can be purchased at given prices if the entire income is spent. |
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10. |
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The change in the consumption of a good that would result if the consumer remained on the original indifference curve after the price of the good changes. |
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11. |
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The change in consumption of goods results strictly from the change in purchasing power after the price of a good changes. |
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12. |
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The sum of the substitution and income effects. |
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13. |
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A good for which quantity demanded varies directly with price, causing an upward sloping demand curve. |
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14. |
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A list of prices and the corresponding quantity consumers are willing and able to purchase at each price. |
