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.
example on the calculation of IS LM Curve?
After the fall of the king, a tax rate of 20% has been introduced in the Frog Islands Republic. The value of Sun corporation is now 100.000€. Bright Star Co. debt has no changed. T
When single business or corporation dominates its area and squeezes out all its competition, the result is the consumer does not have a open choice, and inevitably, the price of it
After two quarters of increasing levels of production, the CEO of Canadian Fabrication & Design was upset to learn that, during this time of expansion, productivity of the newly hi
Explain the apparent paradox that saving money is good for the individual but might be bad for the economy. Considering the circular flow diagram how is this relevant to public pol
Q1. A company selling widgets advertises through three types of media: print, television and internet. Recently the company has decided to increase its advertising budget by $100,0
Consider the Tuckman group stage process schema. Identify specific actions a manager can take at each stage of the process to best help a group reach the performing stage. Respond
Suppose the potential level of real domestic output (Q) for a hypothetical economy is $160 and the price level (P) initially is 200. Use the following short-run aggregate supply
how is credit creation by commercial bank
What is the use of long-run average total cost curve in the producing output? The long-run average total cost curve demonstrates the relationship in between output and average t
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