Chat with AI
Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022 Exercise 32
The slope of an indifference curve is negative.
1. Explain why the slope of an indifference curve would not be expected to be positive for economic "goods."
2. Explain why the MRS (which is the negative of the slope of an indifference curve) cannot be calculated for points E and F in Figure without additional information.
FIGURE Indifference Curve
The curve U1 shows the combinations of hamburgers and soft drinks that provide the same level of utility to an individual. The slope of the curve shows the trades an individual will freely make. For example, in moving from point A to point B, the individual will give up two hamburgers to get one additional soft drink. In other words, the marginal rate of substitution Points below U1 (such as F ) provide less utility than points on U1. Points above U1 (such as E) provide more utility than U1
1. Explain why the slope of an indifference curve would not be expected to be positive for economic "goods."
2. Explain why the MRS (which is the negative of the slope of an indifference curve) cannot be calculated for points E and F in Figure without additional information.
FIGURE Indifference Curve
The curve U1 shows the combinations of hamburgers and soft drinks that provide the same level of utility to an individual. The slope of the curve shows the trades an individual will freely make. For example, in moving from point A to point B, the individual will give up two hamburgers to get one additional soft drink. In other words, the marginal rate of substitution Points below U1 (such as F ) provide less utility than points on U1. Points above U1 (such as E) provide more utility than U1
Explanation
Verified
Verified
1) An economic good is a good that provi...
Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
