If the consumer has a positive marginal utility for each of two goods, why will the consumer

Question:

If the consumer has a positive marginal utility for each of two goods, why will the consumer always choose a basket on the budget line?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

See More Books

Question Posted: Mar 17, 2016 04:48 AM

See More Questions

Julie consumes two goods, food and clothing, and always has a positive marginal utility for each good. Her income is 24. Initially, the price of food is 2 and the price of clothing is 2. After new...
The table below shows how Brett's utility increases as the number of avocados he consumes (per month) increases. Brett's utility is measured in utils, a name that economists invented to describe...
The demand functions for each of two goods depend on the prices of the goods, p1 and p2: Q1 = 15 - 3p1 + p2 and Q2 = 6 - 2p2 + p1. However, each supply curve depends only on its own price: Q1 = 2 +...
In the Tokyo subway system, routes are labeled by letters and stops by numbers, such as G-8 or A-3. Stations allowing transfers are sets of stops. Find a Tokyo subway map on the web, develop a simple...
Write the query that will show the invoice number, the invoice amount, the average invoice amount, and the difference between the average invoice amount and the actual invoice amount.
Find an example of a physical force from within the New Testament and discuss the example. Be sure to provide the scripture reference. Physical force means an event that occurred during biblical...
The following information has been extracted from the financial statements and notes thereto of Bass and Dide Ltd, consultants. Required (a) Calculate the following ratios for 2025: i. return on...
Stylz Company, a recent start-up fashion retailer based in the United States, is deciding between opening its first sales presence in either Italy's Tuscany Region or Spain's Matarrana Region....
The cost of direct materials transferred into the Rolling Department of Jabari Company is $582,000. The conversion cost for the period in the Rolling Department is $328,600. The total equivalent...
Jamie and Cecilia Reyes are husband and wife and file a joint return. They live at 5677 Apple Cove Road, Boise, ID 83722. Jamies social security number is 412-34-5670 (date of birth 6/15/1967) and...
Julie and Toni consume two goods with the following utility functions: UJulie = (x + y)2, MUJuliex = 2(x + y), MUJuliey = 2(x + y) UToni = x + y, MUTonix = 1, MUToniy = 1 a) Graph an indifference...
How can revealed preference analysis help us learn about a consumer's preferences without knowing the consumer's utility function?
For each of the following arguments, use the STTT to determine whether the argument is valid or invalid. For some of these arguments, Steps 2 C , 3 C , and 4 (i.e., the C-Sequence) will be most...
Define and discuss the important provisions of the typical oil and gas lease.
The behavior of a use case can be described by (a) a specification that is some kind of Behavior such as interactions, activities, and state machines (b) pre-conditions and post-conditions along with...
What is fracking?
Explain the role of a landman in oil and gas operations.
Write down five types of transaction where you might expect to see an accrual of expense at the year-end. Against each transaction type write down the method you would use to estimate the amount of...
For each of the following, either construct a formal proof of validity or prove it invalid. If it is to be proved invalid, a model containing as many as three elements may be required. (Ox V Px) (QxV...
Find the equation of the plane passing through the points P 5,4,3 ,Q 4,3,1 and R 1,5,4
1. In the market for insurance, the moral-hazard problem is that ________encourages ________. 2. While shopping for office equipment, an office manager sees a display of fire extinguishers. After...
1. Philadelphia has relatively high prices for car insurance because ________cause ________and ________causes ________. 2. In the market for crop insurance________, -risk farmers buy insurance in...
1. Philadelphia has relatively high prices for car insurance because ________cause ________and ________causes ________. 2. In the market for crop insurance________, -risk farmers buy insurance in...
Calendar Plc have a year end of 30/09/X2. They have prepared the following information about their non-current assets: Land was revalued to 4.2 million on 28/09/X2 All buildings are depreciated using...
Antique Accents reported the following on its 2020 income statement. Using the income statement and the balance sheet given below, prepare the statement of cash flows using the indirect method. For...
Jamal, Maggie, and Kendra are dividing an estate consisting of a house, a vacation home, and a small business. Their valuations are shown below. Determine the payment that Kendra receives from the...

If the consumer has a positive marginal utility for each of two goods, why will the consumer

Question:

Step by Step Answer:

Relative to any point on the budget line when the consumer has a positive ...View the full answer

Microeconomics

Students also viewed these Economics questions