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Identifying an Inconsistent Preference in Curve Construction
An economist is mapping a consumer's preferences between two goods: concert tickets and restaurant meals. The process starts with an initial bundle, Point X, consisting of 4 concert tickets and 10 restaurant meals per month. The consumer states they are indifferent between Point X and Point Y, which consists of 5 concert tickets and 7 restaurant meals. When asked for the next trade-off, the consumer claims to be indifferent between Point Y and a new bundle, Point Z, which consists of 6 concert tickets and 8 restaurant meals. Based on the standard assumptions about consumer preferences, explain why Point Z cannot lie on the same indifference curve as Points X and Y.
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Economy
CORE Econ
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Empirical Science
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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
Analysis in Bloom's Taxonomy
Cognitive Psychology
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A consumer is currently consuming a bundle of 8 cups of coffee and 12 pastries per month. To map out a curve representing bundles of equal satisfaction, the consumer is asked how many pastries they would be willing to trade for one additional cup of coffee. The consumer states they are willing to give up 3 pastries. Based on this information, which of the following bundles would represent another point on the same curve?
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An economist is trying to determine a student's indifference curve for two goods: hours of study time and points on a final exam. Arrange the following steps in the correct logical order that the economist would follow to construct this curve.
An economist is trying to determine a student's indifference curve for two goods: hours of study time and points on a final exam. Arrange the following steps in the correct logical order that the economist would follow to construct this curve.
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When using a sequential questioning process to map out the points on a single indifference curve, the amount of one good a person is willing to sacrifice for one additional unit of the other good will remain constant at each step.
An economist is identifying a series of combinations of 'Good X' and 'Good Y' that provide a consumer with the same level of satisfaction. Starting with Bundle A (10 units of X, 50 units of Y), the economist determines the following sequence of equally preferred bundles by repeatedly asking how much Y the consumer would trade for one more unit of X:
- From A to B: The consumer trades 5 units of Y for 1 unit of X, resulting in Bundle B (11X, 45Y).
- From B to C: The consumer trades 4 units of Y for 1 unit of X, resulting in Bundle C (12X, 41Y).
- From C to D: The consumer trades 3 units of Y for 1 unit of X, resulting in Bundle D (13X, 38Y). Which of the following proposed bundles for the next point (Bundle E, with 14 units of X) would be inconsistent with the typical shape of a curve representing these preferences, which assumes a diminishing willingness to trade?
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