In each case draw two indifference curves

Assignment Help Business Economics

Reference no: EM131162972

Draw a graph for each part with quantities of vegetarian pizza on the horizontal axis and quantities of meat lovers pizza on the vertical axis to illustrate the following situations. In each case draw two indifference curves and make a little arrow pointing in the direction of greater preference.

1. Marc loves meat lovers pizza and hates vegetarian pizza.

2. Zoë is completely indifferent about vegetarian pizza and loves meat lovers pizza.

3. Roxanne loves vegetarian pizza and hates meat lovers pizza.

4. Ellie hates any types of pizza.

5. Mona loves all types of pizza.

Reference no: EM131162972

Questions Cloud

Corresponds to preferences for perfect substitutes : The utility function U(X1,X2)=X1^a + 2X2^b. Corresponds to preferences for perfect substitutes. All ordinary (non-Giffen) goods are also normal goods. (Hint: Use the Slutsky equation to support your answer). If consumer consumes only two goods, both ..

Principal pillars of finance-banking and securities : Offshore banking is largely unprotected by the safety net national governments have imposed to prevent domestic bank failures. Compare and contrast international regulatory cooperation in the two principal pillars of finance: banking and securities.

Utility consists of consuming two ordinary goods : Suppose Mike’s utility consists of consuming two ordinary goods: Hotdogs (normal good) and beer (inferior good). Quantity and price for hotdogs and beer are Xh, Xb, Ph and Pb and his income is I. Draw Mike’s indifference curve, budget line and show t..

What are the long-term effects of rent ceilings : Who benefits from rent ceilings? Who suffers? What are the long-term effects of rent ceilings? How can landlords and tenants cheat on rent ceilings? Do you think the rent ceilings might lead to more discrimination against certain groups?

In each case draw two indifference curves : Draw a graph for each part with quantities of vegetarian pizza on the horizontal axis and quantities of meat lovers pizza on the vertical axis to illustrate the following situations. In each case draw two indifference curves and make a little arrow p..

Compute the welfare loss to this consumer of change : For a consumer with a utility function U(X1,X2)=X1(X1+X2)and a budget constraint P1X1+P2X2=m Compute the welfare loss to this consumer of a change in P2 to 2P2 both in terms of utility and money. Show the steps.

Calculating relevant elasticities : Suppose demand function for good 1 is X1=(2m)/(P1+2P2). Calculating relevant elasticities answer the following questions. Show your calculation. Is this good ordinary or Giffen?

What is consumer optimal consumption bundle after policy : A consumer consumes only food (X1) and alcohol (X2) and he has a utility function U(X1,X2)=bX1+aInX2. Derive the Hicksian demand function for good 1 (h1). Show that it is downward sloping in its own price. What is the new budget constraint? What is t..

Pull promotional strategy and push promotional strategy : Explain the difference between a “pull” promotional strategy and a “push” promotional strategy. Under what conditions should each strategy be used? Give an example of a 'Pull Strategy' that you have experienced.

User Account

All Pages