Sunday

March 1, 2015

March 1, 2015

Posted by **aloha** on Saturday, May 26, 2007 at 12:28pm.

while on socity B the apple and orange are the same price, $4.

society A people consume 10 apples and 8 oranges while societyB people consume

8 apples and 12 oranges. Which society is better off? Explain your

answer and any assumptions you make.

can anyone help me what assumption should i make ? weak axiom reveal preference and all society has same indifferent curve?

I would make the economic assumption that money saved is money earned.

SocietA spends 10*3 + 7*8

SocietB spends 8*4 + 12*4

the question already tell u

SocietA spends 10*3 + 7*8

SocietB spends 8*4 + 12*4

thanks for help anyway

Ok, sorry for the response. It seemed to me to be the point...the society that spent the most on food would be worse off. Maybe I am wrong on that.

also i think money saved is money earned is bit irrelevant to this question

Should i say the all society has same indifferent curve?(what i think) because from the indifference curve of society B the consumption of 8 apples and 12 oranges showed revealed preference to consumption point of 10 apples and 8 oranges,because society B has chosen to consume of 8 apples and 12 oranges when 10 apples and 8 oranges is affordable.But for society A consumption point 8 apples and 12 oranges is lies outside of their budget line.hence we have no idea about whether 10 apples and 8 oranges better or not.I have no idea make any judgement about which society is better..because from common sense both society should have different taste hence different indifference curve.again should i make assumption all society has same indifferent curve???

I thought that under problem, you were told that both societies have the same preferences. I would interpret that to mean both societies have the same SET of indifference curves.

I would argue that B society is better off -- You can show this by a graph, put apples on one axis, oranges on the other. Draw the budget constraint for Society A and indicate the point of 10 apples and 8 oranges as the revealed preference. Repeat for Society B (on the same graph). Society A's consumption point lies within B's budget constraint. That is, Society B could have chosen 10 apples, 8 oranges. But it didnt, it chose something else. Conversely, society A could not have made B's choice of 8 apples 12 oranges as such a point was outside of A's budget constraint. Now then, my conclusion rests on the given assumption that both societies have the same apples/oranges preferences.

**Answer this Question**

**Related Questions**

Microeconomics - On one society A the price of an apple is $3 and the price of ...

4th grade math - Mrs. Reid brought 32 orange and apple slices to her daughter's ...

math - A fruit drink is made up of 20% orange juice, 35% apple juice and the ...

math - jill bought 32 orange and apple slices. There were three times as many ...

Math - FRUIT PRICE: PINEAPPLE $0.80 APPLE:$0.10 PEAR:$0.25 ORANGE:$0.15 Mango:$0...

Electric charge and Coulomb's Law - Can anyone help me explain this problem? ...

Math - Mr lol bought x oranges for $30 and sold them at a profit of 5cents per ...

Math algebra (urgent!) help me! Thanks a lot!! (; - Mr lol bought x oranges for...

Algebra 1 (Reiny) - I'm sorry but I'm confused about the steps you took in the ...

Algebra 1 - Maria has 8 cups of a fruit punch that consists of 25% orange juice...