posted by .

Most of the preferences we use in class exhibit convexity.
What does it imply about the shape of indifference curves? Explain, in
words, what this implies about consumer preferences, think of an example
where this might be a bad assumption and try to come up with a utility
function that captures your idea in the example.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. English

    I'm sorry, I just need a subject suggestion for an English Essay. It's a definition essay for my college English 1A class. The topic is, "A word which has changed in meaning and what the change shows about society." I am not asking …
  2. micro

    On one society A the price of an apple is $3 and the price of an orange is $7, 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 …
  3. science research

    for my science project i have a research project report due tomorrow. can somebody please help me find atleast three reseach web links that can help with what i am searching about, how does color effect taste preferences or does color …
  4. to mrs. sue: essay cont.

    I wrote two of my paragraphs yesterday about how colleges do offer life skills but students have to apply it. These are my next two paragraphs and i was wondering if you can correct my grammar. An example of a class offered in college …
  5. Indifference Curves

    For each example below, draw a set of three indifference curves that represent the given preferences. Be certain to show the direction of increasing utility. Also write down a utility function that would be consistent with the given …
  6. Philsophy

    How the majority can have intransitive preferences without anyone's preferences being intransitive?
  7. Math - Game Theory

    Suppose that a decision-maker's preferences can be represented by the expected value of a utility function u. Find another utility function u' whose expected value represents the decision-maker's preferences and assigns a payoff of …
  8. Economics

    Suppose the consumer has convex preferences, and we know (2, 4) ~(6, 1). Is the statement (4,2.5) >=(6, 1) correct?
  9. ECON

    Assume that a consumer’s indifference curve is bowed outward but satisfies the other three properties of indifference curves. As the consumer moves from left to right along the horizontal axis, the consumer’s marginal rate of substitution
  10. Economics

    Can someone please explain the difference between these, and how they apply to someone that has monotonic preferences?

More Similar Questions