Indifference curves cross

Assignment Help Business Economics

Reference no: EM13859419

Suppose that there are two commodities and a consumer prefers more to less of each good. If the consumer has transitive preferences, can her indifference curves cross?

Reference no: EM13859419

Questions Cloud

Wealth tax-on building-machinery and equipment : In 2012, a group in Germany proposed a “wealth tax” -- on building, machinery and equipment—that would be levied on all employers having at least $1.4 million invested in such assets. Use the labor market theory learned in this chapter to analyze the..

Using annual compounding-future value-present value : If one country has per capita income of $15, 000 and its economic growth rate is 5 percent per year, what will its per capita income be in 10 years? About how many years will it take to catch up to a country where the per capita income is $30, 000 pe..

Marginal cost of filling out tax returns : Jose rents office space for $20,000 per year. He uses the office to fill out tax returns for 1

Compare the plans in terms of scale and substitution effects : Suppose the government of Washington is considering the addition of a new tax on firms. You have been called in to provide expert analysis on how such a tax would affect employment of labor. Compare the plans in terms of their scale and substitution ..

Indifference curves cross : Suppose that there are two commodities and a consumer prefers more to less of each good. If the consumer has transitive preferences, can her indifference curves cross?

Price of good changes-price elasticity of demand : Explain why, when the price of good changes, the price elasticity of demand is likely to be higher or lower as a longer period of time elapses. Consider as an example the OPEC oil price increases in the 1970s.

What minimum increase in sales would be necessary in order : Artsy T-Shirts sells 100,000 shirts a year, priced at $14 each. The company can produce any number of shirts at a constant cost of $10 each. It is considering expanding its sales by lowering the price to $12. What minimum increase in sales would be n..

Calculate average cost-wages-gas-insurance-payments on loans : Leopold Bus Company runs daily service between Bigcity and Tinytown. It calculates that the average cost per trip (wages, gas, insurance, payments on loans, etc.) is $140. Will the sales of the standby tickets cover the average costs of the extra pas..

What is the price elasticity of demand for labor : When the price of wheat rises from $2.34 to $2.46, some farmers switch crops, and the amount of barley offered on the market falls from 101 million bushels to 99 million. What is the cross elasticity of supply? When the wage rate rose from $6.25 per ..

User Account

All Pages