creating as set of contour plots of DM’s implied utility function. Figure 1 plots a set of "indifference curves" assuming a utility function of U = X Y. FIGURE 1 U=X^1Y^1 100 U= 1 U= 8100 U= 6400 U= 4900 U= 3600 U= 2500 Y 60 80 40 U= 1600 U= 900 U= 400 U= 100 0 20 0 20 40 X 1 60 80 100 Marginal Rate of Substitution The slope of the indifference curve is called DM’s Marginal Rate of Substitution (MRS) and provides information with respect to tradeoff’s
Premium Utility Preference Consumer theory
Vibration- Rotation Spectroscopy of HCl and DCl Purpose: To determine the fundamental vibration frequency and bond length for H35Cl‚ H37Cl‚ D35Cl‚ and D37Cl and to compare the isotope effects to theoretically predicted values. Introduction Vibration spectroscopy is one of the most important tools for the accurate determination of molecular structure. Vibration spectroscopy also plays an important role in environmental chemistry. For example‚ the albedo of the earth’s atmosphere is controlled by the
Premium Atom Spectroscopy Oxygen
The validity of the Environmental Kuznets Curve hypothesis in relation to developing countries. The proper use of the environment has become a controversial topic in economics. In both of James Beecher’s lectures during the module‚ he outlined a critique of mainstrem economics currently governing all our policies‚ and presented several key thinkers in environmental economics. The huge potential for economic growth through the exploitation of the environment has been undeniable. Vital resources
Premium Economics Economic growth Policy
that‚ if a consumer prefers more to less then his indifference curves cannot cross. 2) Suppose that current and future consumption are perfect substitutes. The indifference curves will consist of parallel lines with the negative slope m‚ where m > 0. a) How does the marginal rate of substitution between current and future consumption relate to the geometry (i.e. the slope and the intercept) of the consumer’s indifference curves? b) Given perfect substitutes‚ is more preferred to less? Do
Premium Consumer theory Substitute good
Examination One Assume that you recently graduated with a degree in finance and have just reported to work as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the firm’s clients is Michelle Dellatorre‚ a professional tennis player who has just come to the United States from Chile. Dellatorre is a highly ranked tennis player who would like to start a company to produce and market apparel that she designs. She also expects to invest substantial amounts of money through
Premium Interest Corporation Inflation
Statement of Aim Topic: The impact of a monopoly firm on consumer choice in the electricity distribution industry. Aim: How does the lack of competition in the local energy sector affects consumer choice and consumer satisfaction. Objectives The objective of this internal assessment is to: * Analyze the contribution of JPS to the Jamaican economy * Determine the strategies used by JPS in their service delivery to meet consumer demand * Identify and evaluate the type of market
Free Economics Perfect competition Electricity generation
Consumer Expenditure and Equi-marginal Utility Consumer behaviour theory tries to explain the relationship between price changes and consumer demand. Utility is a concept used to denote the subjective satisfaction or usefulness attained from consuming goods and services. This concept helps to explain how consumers divide their limited income / resources among different choices of goods and services that help attain them satisfaction (utility) The issue however is how we are supposed to measure
Premium Consumer theory Utility
(a) Would the demand for apartments in this area be relatively inelastic or relatively elastic? State why. (b) Would the supply of apartments in this area be relatively inelastic or relatively elastic? State why. 1 (c) Draw the demand and supply curves as you have described them‚ showing the initial equilibrium price and quantity. Label carefully. (d) Now assume the government creates a rent supplement program. Under this program‚ the renter is required to pay 30% of income in rent. Any additional
Premium Supply and demand
we de…ne them). True/False/Uncertain:? Question 2: In each of the following examples‚ a consumer purchases just two goods: x and y. Based on the information in each of the following parts‚ sketch a plausible set of indi¤erence curves (that is‚ draw at least two curves on a set of labeled axes‚ and indicate the direction of higher utility). Also‚ write down a utility function u(x; y) consistent with your graph. Note that although all these preferences should be assumed to be complete and transitive
Premium Consumer theory Preference
R^1/2 + 2. Determine whether the following utility functions have strictly convex indifference curves (Use diagram and/or calculus). a. U= x11/2 + x21/2 b. U= min(x1/5‚ x2/2) c. U=( x1 + x2)3 3. Consider the following utility functions ((Use diagram and/or calculus ). a. U= x14 x24 b. U= x11/4 x21/4 c. U = 5x1+3x2 i. Find MRS for each function ii. Graph the indifference curve for U= 1 for each utility function . iii. Check for convexity/strict convexity‚ monotonocity/strict
Premium Utility Preference