Q. 105.0( 1 Vote )

Identify which of

Answer :

Two regular convex to origin indifference curves can intersect each other. This statement is not true because indifference curves can never intersect.

An indifference curve is a graph showing a combination of two goods that give the consumer equal satisfaction and utility. Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility.


OR


It is a straight line in the commodity space since it is a linear equation in x and y.


Equation is M̅ = px.x + py.y


b.


Its slope is negative and is equal to − px/py. , the numerical slope of the budget line is px / which is equal to the ratio of the prices of X and Y.


c.


25Qx+10Qy=250


If he doesn’t buy Y then Qy=0


Now, 25Qx+0=250


Qx=10 units


d.


If the price of Y falls, the consumer will buy more quantity of Y with the same amount of money. This would push Y-intercept of the Budget line away from the origin.


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