Chers marginal rate of substitution of necklaces

Assignment Help Microeconomics

Reference no: EM13692590

Cher's marginal rate of substitution of necklaces (N) for earrings (E) is 5 (MRSEN = 5).

This information implies that:

A. Cher should own 5 times as many necklaces as pairs of earrings.

B. Cher will move to a higher indifference curve if she trades away 5 necklaces for one more pair of earrings.

C. the slope of the indifference curve is 5 and thus upward sloping.

D. Cher is willing to trade away 5 necklaces for one more pair of earrings, holding her utility constant.

Reference no: EM13692590

Questions Cloud

Additional change alter the market shares of the two firms : Suppose 2 firms are found on the real line [0,1]. Firm 1 is located at a=.15, and Firm 2 is located at 1-b, where b=.15. Assume P1=P2=$10. Consumers face a distance cost of $2 per square unit of distance. What can you infer about the market share of ..

Financed at an interest rate : A friend of yours just bought a new sports car with a $4500 down payment, and her $27000 car loan is financed at an interest rate of 0.50% per month for 48 months. after 2 years, the "blue book" value of her vehicle in the used car marketplace is $13..

Real income rises as the price level declines : Agree or disagree and explain. The AD schedule slopes downward because real income rises as the price level declines and everybody buys more as the real income rises.

Money to invest in an employee benefit plan : PARC Company has money to invest in an employee benefit plan, and you have been chosen as the plan's trustee. As an employee yourself, you want to maximize the interest earned on this investment and have found an account that pays 7% compounded conti..

Chers marginal rate of substitution of necklaces : Cher's marginal rate of substitution of necklaces (N) for earrings (E) is 5 (MRSEN = 5).

How the budget affects economic activity : How the budget affects economic activity. Explain when the government should have a budget deficit and when it should have a budget surplus.

Trigger strategy that can support the collusive outcome : Construct a “trigger” strategy that can support the collusive outcome; Find the values for the interest rate r such that the “trigger” strategy is

Define modern economic growth : Define "modern economic growth" and explain the institutional structures needed for an economy to experience it. Identify the general supply, demand, and efficiency forces that give rise to economic growth.

Calculate the equilibrium level of disposable income : Calculate the Equilibrium level (Y) Calculate the equilibrium level of disposable Income (Yd) Calculate the level of Consumption (C) in equilibrium

User Account

All Pages