User Account

All Pages

Indifference curves and the optimal point in a graph

Assignment Help Microeconomics
Reference no: EM132471500

Assume that Amy views right shoes and left shoes as perfect complements: a left shoe will not increase her satisfaction unless she can obtain the matching right shoe. Give a utility function that represents Amy's preferences.

Suppose that she has $286 to spend on shoes. Assume that a right shoe costs $60 and a left shoe costs $50. What is Amy going to do? [assume that it makes sense to buy fractions of a shoe, such as half a shoe]. Show the budget set, the indifference curves and the optimal point in a graph.

Reference no: EM132471500

Questions Cloud

Describe early impact of the industrial revolution on cities : Describe the early impacts of the Industrial Revolution on cities of Europe or the northeast USA with respect to livelihoods, urbanization, housing
Advantageous from a bargaining position : Which of these would be most advantageous from a bargaining position?
Write a summary of the incident : Identification of the information (hazard class, description, labels, markings, and placards) that the DOT requires when transporting toxic substances
What would happen to the marginal propensity to save : What would happen to the marginal propensity to save when a tax cut was enacted causing the multiplier to change to 5?
Indifference curves and the optimal point in a graph : Suppose that she has $286 to spend on shoes. Assume that a right shoe costs $60 and a left shoe costs $50. What is Amy going to do?
What combination of meat and potatoes : What combination of meat and potatoes should she buy to maximize her utility? (Hint: Meat and potatoes are perfect substitutes)
Description of the elements of the emergency respons : Description of the elements of the emergency response to the incident including a discussion on its environmental and human health impacts
Average life satisfaction and gdp per capita : What is the relationship between life Average Life Satisfaction and GDP per Capita?
Time series analysis and forecasting assignment : Time Series Analysis and Forecasting Assignment Help and Solution - What type of pattern exists in the data and What is the forecast for next month

Reviews

Write a Review

Microeconomics Questions & Answers

  Compute the advertising elasticity

Pop-O Popcorn, Inc. sells bags of flavored gourmet popcorn in a popular mall. As shop owner and operator, Cara estimates the demand for flavored popcorn to be.

  What is the income elasticity of demand for movie tickets

After correcting the sign in the demand function, what is price elasticity of demand for movie tickets and what is the income elasticity of demand for movie tickets?

  Suppose that country a has population of 500000 and only

assume that country a has a population of 500000 and only produces 1 good cars. country a produces 100000 cars per

  Impact of a change in government spending

How does the multiplier tell us the impact of a change in government spending?

  Explain the two main causes of banking crises

Suppose the economy is significantly weakened, real GDP is far below potential GDP, and the unemployment rate is high. The Federal Reserve is concerned.

  What is the expected return on the angel investment

Uncertainty and Expected Utility - Suppose your current wealth is $160,000. What is the expected return on the "angel" investment

  1 regulators are considering controlling the emissions

1. regulators are considering controlling the emissions from two local power plants. the marginal benefits the

  Illustrate diagram of market after a tax of t is imposed on

the following claim is often made with respect to per unit taxes imposed on some good or service the producers will

  If cola and iced tea are good substitutes for customers

If cola and iced tea are good substitutes for customers, then it is probable that: __________ is the change in what is on the horizontal axis (quantity) divided by the change in what is on the vertical axis (price).

  Computing average product cost

Burger Doodle is the fast-food restaurant that processes average of 680 food orders each day. Evaluate the average product cost

  Gross domestic product problem

Economics 12th edition, Chapter 22 P. 485 asks which of the following transactions are included in gross domestic product, and by how much does each raise GDP? Smith pays a carpenter $50,000 to build a garage

  Necessarily increase with increase in output

If there are diminishing returns to the variable input, will average variable cost necessarily increase with increase in output?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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