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.
INTRODUCTION TO DEMAND ANALYSIS: It is generally seen that market demand curve is downward sloping. Market demand curve (or sometimes called Aggregate demand curve) is nothing
Q. Describe classical model of macroeconomics? Though we use the term ‘the classical model' as if there were just one classical model, this isn't quite true. For all the models
If interest rates increase, which would you rather be holding, long term or short term bond? Why? Which type of bond has the greater interest rate risk?
Money is generally considered to have three economic functions: A medium of exchange. This is its most significant role. Without money we would live in a barter economy wher
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
1) The modern global economic system In finance we learn that while the future is always uncertain there are ways we gain insight and make the best possible investment decisi
Q. AS-AD model with inflation? When we have inflation, both AD curve and AS curve will be gliding. 'The glide rate' of the AD curve is given by Π M whereas it is Π W that appli
#If the reserve bank wants to pursue a contractionary monetary policy, the bank should?
Christina Romer and Jared Bernstein in "The Job Impact of the American Recovery and Reinvestment Plan" calibrated the impact of the proposed expansionary fiscal policy (we know it
A sample of 60 mutual funds was taken and the mean return in the sample was 13% with a standard deviation of 6.9%. The return on a particular index of stocks (against which the mut
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