Use graphs where necessary and EXPLAIN whether the following statements are true or false: (a) If...

 

Transcribed Image Text:

Use graphs where necessary and EXPLAIN whether the following statements are true or false: (a) If someone has the utility function U = 1,000 + 2 min (x, y) then x and y are perfect complement goods for that person. (b) With quasilinear preferences, the slope of indifference curves is constant along all rays through the origin. (c) The marginal rate of substitution measures the distance between one indifference curve and the next one. x2 (d) Ambrose has an indifference curve with equation x₂ = 20 - 4x1/2. When Ambrose is consuming the bundle (4,16), his marginal rate of substitution in absolute value is 5/4. Use graphs where necessary and EXPLAIN whether the following statements are true or false: (a) If someone has the utility function U = 1,000 + 2 min (x, y) then x and y are perfect complement goods for that person. (b) With quasilinear preferences, the slope of indifference curves is constant along all rays through the origin. (c) The marginal rate of substitution measures the distance between one indifference curve and the next one. x2 (d) Ambrose has an indifference curve with equation x₂ = 20 - 4x1/2. When Ambrose is consuming the bundle (4,16), his marginal rate of substitution in absolute value is 5/4.

Answer rating: 100% (QA)

Answer Hey champWelcome to this platform Here you will get the answerok with better quality in minim... View the full answer