Question: Suppose that preferences are such that indifference curves are parallel shift along the identity line. That is, if x~ y then x+(a,...,a) ~ y+(a,...,a). Call

Suppose that preferences are such that indifference curves are parallel shift along the identity line. That is, if x~ y then x+(a,...,a) ~ y+(a,...,a). Call these preferences parallel.

• Find a class of utility functions that represents all parallel preferences.

• What are the preferences that are homothetic and parallel?

Step by Step Solution

★★★★★

3.51 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 ans generally the preferences that are used to represent a ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

3. [10 Points] Recognizable languages have enumerators. Suppose that language LC has recognizer machine M and consider the construction of an enumerator for L discussed in lecture 18, using the...

For the special class of utility functions u(w) = w ? be?aw, with a, b > 0, Bell (1988) suggested another measure of risk aversion. For this class, expected utility takes the form where the product...

Suppose that preferences are concave. Is it still the case that the substitution effect is negative?

Suppose your indifference curves between X and Y are shaped as in Exhibit. The Consumers Choice with Nonconvex Indifference Curves a. What is the shape of your ordinary (uncompensated) demand curve...

Suppose that preferences are such that indifference curves are parallel shift along the identity line. That is, if x~ y then x+(a,...,a) ~ y+(a,...,a). Call these preferences parallel.

Algorithms in Artificial Intelligence (or, the old name: Introduction to Algorithmic Decision Making) Part 1 Based on slides by David Sarne and Lirong Xia Course Tentative Schedule Introduction...

Question 3 On the Iyplane. a my from the origin is a straight line passing through the origin. (Mathematically, it is given by the equation y = 7'3: for some real number 1 r.) A preference is said to...

Read the attached journal article (Stoshkj 2014). :4 Marina Stoshikj this type of situations is that not always the involved parties are able to recognize that they are after different things and...

Part 1: True-False questions: Answer all questions. Whenever the question concerns a consumption set, assume that C = R2 +. 1. If the price of either good falls, assuming income if xed, the budget...

1. For each of the following statements, define all of the underlined terms. Then, explain why the statement is true, false or uncertain. (a) If a consumer views two goods as perfect substitutes then...

A crane use 2 kW to raise a 100 kg box 20 m. How much time does it take?

Suppose that you are asked to maintain a very large database containing all transactions of the company. The company relies significantly on mining all these transactions for its future investments....

Find the following limit or state that it does not exist. lim x 1 9 x 2 - 3 6 1 1 9 - x Select the correct choice below and, if necessary, fill in the answer box to complete your choice. A . lim x 1...

Gilliam Wholesalers accepts from Perlman Stores a $6,200, 4-month, 9% note dated May 31 in settlement of Perlmans overdue account. The maturity date of the note is September 30. What entry does...

A small bead can slide without friction on a circular hoop that is in a vertical plane and has a radius of 0.100 m. The hoop rotates at a constant rate of 4.00 rev/s about a vertical diameter (Fig...

A 70-kg person ride in a 30-kg cart moving at 12 m/s at the top of a hill that is in the shape of an arc of a circle with a radius of 40 m. (a) What is the apparent weight of the person as the cart...

Banked Cone I A curve with a 120-m radius on a level road is banked at the correct angle for a speed of 20 m/s. If an automobile rounds this curve at 30 m/s. what is the minimum coefficient of static...

In another version of the "Giant Swing" (see Exercise 5.52), the seat is connected to two cables as shown in Fig. 5.58, one of which is horizontal. The seat swings in a h0ri2ontal circle at a rate of...

The following frequency histogram represents the IQ scores of a random sample of seventh-grade students. IQs are measured to the nearest whole number. The frequency of each class is labeled above...

QUESTION 2 An individual consumes only two goods, X and Y. Which of the following expressions represents the utility maximizing market basket? A) MRSxy is at a maximum. B) Px/Py = money income. C)...

To be answered asap need complete solution and explanation: Activity 1 Identify whether the given equation is an identity or a conditional equation. For each conditional equation, provide a value of...

1. According to the model of voting developed in the chapter, the choices made by the government match the preferences of the _________ voter. 2. The self-interest theory of government explains why...

3. Assume Jenkins only cares about the total pounds of fast food that he consumes. The more pounds of fast food he consumes, that happier he is. Remember each burger is 1/4th of a pound and each taco...

1.Suppose a cup of coffee at the campus coffee shop is $2. 50 and a cup of hot tea is $1. 25. Suppose a student's beverage budget is $20 per week. Suppose the student simply prefers more caffeine to...

4. (6) Consider a five-member society (call its members 1, 2, 3, 4, and 5) whose members have preferences over three alternatives (call the alternatives A, B, and C). Suppose that preferences for...