Explain your answer in terms of utility theory

Assignment Help Business Economics
Reference no: EM132373522

A consumer has a choice of spending $13,000 on a Honda or $9,000 on a Subaru. She is observed buying the Subaru. Does this mean the consumer prefers the Subaru? Explain your answer in terms of utility theory, revealed preference, and the budget constraint.

Reference no: EM132373522

Questions Cloud

Company marketing strategy and goals : Hannah is a new salesperson, taking over a territory. She is in the process of understanding her company's marketing strategy and goals, using a strategic
What are some potential challenges : What are some potential challenges that could arise when taking a class in Business?
Define what a next generation firewall is : Define what a Next Generation Firewall (NGFW) is and the advantages of having this type of firewall as opposed to a Packet Filter Firewall?
What effect do economies of scale : What effect do economies of scale have on the market structure of an industry?
Explain your answer in terms of utility theory : Does this mean the consumer prefers the Subaru? Explain your answer in terms of utility theory, revealed preference, and the budget constraint.
Explain risk profile methodologies in brief : Topic: Explain Risk Profile Methodologies. Write a 2-page essay paper that discusses the topic below. Your paper should be in APA format with viable sources.
What would the breakeven and shutdown points : Need help with this question What would the breakeven and shutdown points for a firm that can sell output at a price of $38 per unit when
Traditional method of grading cotton : What advantages does this system have for the farmer when compared to the traditional method of grading cotton?
What is the marginal propensity to consume : What is the marginal propensity to consume? Explain

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd