This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: How can a consumer's demand for a good be derived using indifference curve analysis? What will be ... (Read 103 times)

imowrer

  • Hero Member
  • *****
  • Posts: 514
on: Jun 29, 2018
How can a consumer's demand for a good be derived using indifference curve analysis?
 
  What will be an ideal response?

Question 2

If a consumer has a choice between only two goods and both of them are perfect complements what would the indifference curve look like and why?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dominiqueenicolee

  • Sr. Member
  • ****
  • Posts: 314
Reply #1 on: Jun 29, 2018
Answer to Question 1

As the price of a good changes the consumer's budget constraint changes. Thus, it is possible to see how the consumer changes his utility-maximizing choice. This will give us his new quantity demanded at each price.

Answer to Question 2

The indifference curves would be L-shaped. The reasoning is that one good must be accompanied by the other good in order to give the first any utility. Having more of the second good however, doesn't make the person any better off.


imowrer

  • Hero Member
  • *****
  • Posts: 514
Reply #2 on: Jun 29, 2018
Thank you


dominiqueenicolee

  • Sr. Member
  • ****
  • Posts: 314
Reply #3 on: Jun 29, 2018
No problemo


« previous next »
 

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

A chart derived from a flow sheet. A chart derived from a flow sheet.
Good hand and body mechanics when applying thumb pressure to the back. Good hand and body mechanics when applying thumb pressure to the back.
Experimental Analysis of Metabolism Experimental Analysis of Metabolism
An Environmental Kuznets Curve An Environmental Kuznets Curve
Economic Analysis of Social Issues Plus MyEconLab Economic Analysis of Social Issues Plus MyEconLab
Electron micrograph of mitochondrial DNA derived from the frog Xenopus laevis Electron micrograph of mitochondrial DNA derived from the frog Xenopus laevis
Video: How to find out if a population is evolving?

For a complete list of videos, visit our video library