Learn Before
Activity: Plotting an Indifference Curve from an Equation
To graphically represent an indifference curve, one must first establish the equation for that curve by setting the utility function to a specific, constant level (). The next step is to algebraically rearrange this equation to express one of the goods, such as consumption (), as a function of the other, such as free time (). This resulting equation can then be plotted on a graph, conventionally with one good on each axis, to visually construct the indifference curve corresponding to that utility level.
0
1
Tags
CORE Econ
Economics
Social Science
Empirical Science
Science
Economy
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.3 Doing the best you can: Scarcity, wellbeing, and working hours - The Economy 2.0 Microeconomics @ CORE Econ
Related
Equation of Karim's Indifference Curve
Activity: Plotting an Indifference Curve from an Equation
Marginal Rate of Substitution (MRS)
Calculus-Based Methods for Analyzing Indifference Curves
An individual's preferences for hours of free time per day (
t) and units of consumption (c) are represented by the utility functionu(t, c) = t * c. If this individual currently has 20 hours of free time and 80 units of consumption, which equation represents the indifference curve passing through this specific combination of goods?Deriving and Interpreting an Indifference Curve Equation
Comparing Bundles on an Indifference Curve
Comparing Bundles on an Indifference Curve
An individual's preferences for two goods, Good X and Good Y, are described by the utility function u(X, Y) = X²Y. If the individual is currently consuming a bundle of 4 units of Good X and 10 units of Good Y, which of the following bundles would provide the exact same level of satisfaction?
Consider an individual whose preferences for daily hours of free time (
t) and units of consumption (c) are represented by the utility functionu(t, c) = t + 2c. This individual would strictly prefer the combination of 10 hours of free time and 5 units of consumption over the combination of 6 hours of free time and 7 units of consumption.An individual's preferences for two goods, apples (A) and bananas (B), are such that they are always willing to trade one apple for exactly two bananas to maintain the same level of satisfaction, regardless of how many of each they currently have. Which equation best represents an indifference curve for this individual, where
ūis a constant level of utility?Match each utility function, which describes an individual's preferences over two goods (x and y), with the corresponding description of the preferences it represents. An indifference curve is formed by setting each function equal to a constant.
An individual's preferences for two goods, x and y, are represented by the utility function
u(x, y) = x * y. If this individual is consuming a bundle of 10 units of good x and 5 units of good y, the equation for the indifference curve passing through this point isx * y = ____.An economist has a utility function representing a consumer's preferences for two goods, X and Y. The economist wants to find the equation for the specific indifference curve that passes through the consumer's current consumption bundle. Arrange the following steps in the correct logical order to accomplish this.
Learn After
A person's preferences for two goods, consumption (c) and free time (t), can be described by the utility function U(c, t) = c × t. To find the specific combination of goods that gives this person a utility level of 200, one must derive the equation for the corresponding indifference curve. Which of the following equations correctly represents this indifference curve, expressing consumption as a function of free time?
Deriving an Indifference Curve Equation
Graphing Consumer Preferences
Consider an individual whose preferences for consumption (c) and free time (t) are represented by the utility function U(c, t) = c × t. A bundle consisting of 10 units of consumption and 14 units of free time would be a point on the indifference curve that corresponds to a total utility level of 144.
You are given a utility function that describes a person's preferences for two goods. Arrange the following steps in the correct chronological order to graphically represent the indifference curve for a specific level of utility.
Match each utility function, which describes a person's preferences for two goods (x and y), to the general shape of the indifference curve it would produce when plotted.
A consumer's preferences for two goods, Apples (A) and Bananas (B), are described by the utility function U(A, B) = A * B. To achieve a constant utility level of 150, if this consumer has 10 units of Apples, they must have ____ units of Bananas.
Critique of an Indifference Curve Plot
Bundle Preference Analysis
An economist is mapping out a consumer's indifference curve for a utility level of 10, based on the utility function U(x, y) = √x + y. The economist has calculated several bundles of goods (x, y) that should lie on this curve. Which of the following bundles has been calculated incorrectly and does NOT lie on the indifference curve for a utility level of 10?