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Ingy_ Ingy_
wrote...
Posts: 365
6 days ago

Question 1.

Which of the following is held constant along an indifference curve?



the prices of the goods in question



the marginal utility derived from consuming any bundle of goods on the indifference curve



the marginal rate of substitution between the two goods in question



the total utility derived from consuming any bundle of goods on the indifference curve



Question 2.

In the utility maximizing model, consumer preferences are assumed to be transitive. What does this mean?



that consumers go through cycles in their consumption behavior



that consumers prefer more of a good to less



that consumers have preferences that are relatively consistent in the time period under consideration



that consumers have the freedom to change their preferences from time to time

Textbook 

InMicro


Edition: 1st
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cooldawg69cooldawg69
wrote...
Posts: 305
6 days ago
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Answer 1

the total utility derived from consuming any bundle of goods on the indifference curve



Answer 2

that consumers have preferences that are relatively consistent in the time period under consideration

1

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