An individual consumes two goods and her preferences satisfy non-satiation. It follows that at least one of

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

Question:

An individual consumes two goods and her preferences satisfy non-satiation. It follows that at least one of the two goods must be a normal good. Is this true or false? Explain your answer.

Related Book For answer-question

Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

See More Books

Posted Date: Jul 21, 2020 04:55 AM

See More Questions

Suppose you check your e-mail and find a message from someone at Microsoft.com. The message body is as follows: As a user of Microsoft Internet Explorer, Microsoft Corporation provides you with this...
An individual consumes two goods, clothing and food. Given the information below, illustrate both the income-consumption curve and the Engel curve for clothing and food. Price Clothing $10 $10 $10...
The Smiths have two children. At least one of them is a boy. What is the probability that both children are boys? (See Gardner 1961 for a complete discussion of this problem.)
My company is Target (TGT). In this project, you will find and discern the appropriate data to determine a realistic assessment of the weighted average cost of capital for a firm of your choosing....
Luft Corporation's accounts had the following beginning balances: During the period, the following transactions occurred: 1. Purchased inventory on account, $ 1,300. 2. Paid employees, $730. 3. Sold...
U-Save-Bucks tax consulting service rents space at $200 per week and pays the accounting personnel $4 per completed tax return. Set up an equation that describes the relationship between the two...
If the probability is 0.90 that a new machine will produce 40 or more chairs, find the probabilities that among 16 such machines (a) 12 will produce 40 or more chairs; (b) at least 10 will produce 40...
Monica Sexton filed a petition for Chapter 13 reorganization. One of her creditors was Friedmans Jewelers. Her petition misclassified Friedmans claim as $ 800 of unsecured debt. Within days,...
Discuss the current most significant liquidity risk for the banking industry.
The October 31, 2017, bank statement of Jazzera Distributors has just arrived. To prepare Jazzera Distributors' bank reconciliation, you gather the following data: a. The October 31 bank balance is...
Using the following information prepare all appropriate journal entries for years 1 and 2. You are only required to create entries within the subaccount of Education and training you do not have to...
Find on the curve x^2/4-8y^2-25 the closest points to the point (0,0). Find the total derivative df/dt: (a) f(x,y)= t^2 (y-4x)^3, where x(t)=ln(6t), and y(t)=4e^(t/2) (b) f(x,y)=ln(xy^2)+e^(x/y)-t,...
the stock appreciation rights. The equivalent number of shares for stock appreciation rights will be based on the level of sales of the company at the end of 2023, as follows: Sales Level (in...
Solve each of the equations/TVPs below. When you solve, indicate which method you are using (separable, linear, Bemoulli, exact) and why you chose that method. (-1499) # 1+9y2 dr dN di + N=Nte+2 no...
Suppose that the total worldwide sales for a song album are approximated by the function: 200x x +5 where, S(x) = S(x) is the measured in millions of dollars; and x is the number of months since the...
Saul the college calculus student wants to reheat some soup between study sessions. Saul puts the bowl in the microwave straight from the refrigerator. When the soup has been heating up for t...
Consider the following structural VAR model Y2t = = 10 312 2,111,t-1 +122,-1+1,t 20 321 1,211,t-1 +22 2,t-1+2, - where (1)~d Questions: (1) Write the above structural VAR in matrix form. Carefully...
Why is it important to understand the macro-environment when making decisions about an international retail venture?
You are selling two goods, 1 and 2, to a market consisting of three consumers with reservation prices as follows: The unit cost of each product is $30. a. Compute the optimal prices and profits for...
Suppose that rather than the declining demand assumed in Example 2.8, a decrease in the cost of copper production causes the supply curve to shift to the right by 40%. How will the price of copper...
Suppose a profit-maximizing monopolist is producing 800 units of output and is charging a price of $40 per unit. a. If the elasticity of demand for the product is 2, find the marginal cost of the...
A researcher has 1100 observations on household expenditures on entertainment (per person in the previous quarter, \$) ENTERT. The researcher wants to explain these expenditures as a function of...
An econometrician wishes to study the properties of an estimator using simulated data. Suppose the sample size $N$ is set to be 100 . The intercept and slope parameters are 100 , and 10 ,...
Using data on 1000 home loan borrowers, we estimate the linear probability model where $D E F A U L T=1$ if the borrower has made a mortgage payment more than 90 days late, $L T V=100$ (loan...

An individual consumes two goods and her preferences satisfy non-satiation. It follows that at least one of

Question:

Expert Answer:

AnsTrue The term non satiation means consumer prefers more to lessSo when income rises the consume... View the full answer

Microeconomics

Students also viewed these economics questions