Bob enjoys fishing and hunting.He divides his leisure hours between the two outdoor activities.Suppose we were to draw Bob's indifference curves for the two activities,placing fishing on the horizontal axis and hunting on the vertical axis.If Bob's indifference curves are bowed inward,then
A) the rate at which he is willing to give up an hour of hunting for an hour of fishing changes depending on how many hours of each activity he has done. For example, if Bob has already fished a lot in one week, he will be more willing to give up an hour of fishing for an hour of hunting than if he has only fished a little that week.
B) the rate at which he is willing to give up an hour of hunting for an hour of fishing is constant because he must derive the same enjoyment out of each activity.
C) the rate at which he is willing to give up an hour of hunting for an hour of fishing changes depending on how many hours of each activity he has done. For example, if Bob has already fished a lot in one week, he will be less willing to give up an hour of fishing for an hour of hunting than if he has only fished a little that week.
D) Bob's indifference curves will not cross. When indifference curves are bowed outward, the indifference curves must cross.
Correct Answer:
Verified
Q141: The rate at which a consumer is
Q148: The following diagram shows one indifference curve
Q155: The following diagram shows one indifference curve
Q321: Each of the following are characteristics of
Q327: The slope of an indifference curve is
A)the
Q329: As long as a consumer remains on
Q332: The marginal rate of substitution
A)varies along an
Q334: Assume that a consumer's indifference curve is
Q337: The marginal rate of substitution is equal
Q339: If an indifference curve is bowed out
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents