Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Mathematical Presentation:
Consider the utility function U = U(x1, x2). Differentiating totally, we get the following: dU = U1dx1 + U2dx2 = 0 (as along the indifference curve utility is constant, dU = 0). Therefore, , which is the slope of the indifference curve. It is negative since U1(x1, x2) >0 and U2(x1, x2) >0 by assumption of non-satiation of all goods. Thus, indifference curve is downward sloping because all goods are non-satiated, choice is continuous, reflexive and complete. Economic meaning All goods are non-satiated i.e., larger (lower) consumption leads to lager (lower) utility. Hence, for given x2, as x1 increases, utility increases. Thus, to maintain same level, utility must be reduced, which is possible by reducing x2. Hence, as x1 increases, x2 must decreases in order to maintain same level of utility. That is why indifference curve is downward sloping.
effects of real wage existing in the market that is lower than the equlibrium real wage.what will happen in this labour market if it is perfectly competitive
At first, Say's Law may seem 'obvious'. Though, it's not - actually, it's highly controversial. The reason it may seem obvious is that you have perhaps learned from microeconomics
Suppose the utility function is given by: u(x,y) = 3x+4y. What kind of goods are X and Y and what is the MRS?
You can work on this assignment individually or in a group of up to 4 people. If you choose to work as a group, your group should hand in one assignment and you will all receive t
TRADE LIBERALISATION UNDER WTO: In the Uruguay Round negotiations, India agreed to reduce tariff on a large number of commodities and remove quantitative restrictions (QRs
Suppose you serve on an environmental policy planning board for the federal government. Your task is to propose a policy initiative aimed at reducing urban air pollution, using the
The LM-curve in the AS-AD model The LM-curve will shift upwards (downward) when P is increases (decreases) in the AS-AD model is moved L
What are the four managerial factors that lead to diseconomies of scale
Who decides what goods services will be produced and sold in the US? Ans) It is mostly the American consumer. The US government also plays a big role in the nation's economy, co
Your Insurance firm processes claims through its newer, larger high tech facility and its older, smaller low-tech facility. Each month, the high-tech facility handles 10,000 claims
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd