Mr. Atul has to spend Rs.5 on the purchase of apples and oranges whose prices are Rs 1/apple and .50/orange. How many apples and oranges would he be able to purchase to attain the level of equilibrium through indifference curve analysis? Explain various stages of the answer which will include the following aspects of the indifference curve analysis – i) statement of Consumer`s Equilibrium ii) Conditions of Equilibrium iii) Schedule for Analysis iv) Graphical Presentation of Indifference Curve v) Explanation Graphical Presentation. –

Indifference curves illustrateGroup of answer choicesa firm's profits.the prices of two goods.a consumer's preferences.a consumer's budget.

Title11) Refer to Figure 6.15. The slope of the indifference curve is the ratio of the A) marginal...Description 11) Refer to Figure 6.15. The slope of the indifference curve is the ratio of theA) marginal utility of ice cream cones to the marginal utility of ice cream sandwiches.B) marginal utility of ice cream sandwiches to the marginal utility of ice cream cones.C) total utility of ice cream cones to the total utility of ice cream sandwiches.D) total utility of ice cream sandwiches to the total utility of ice cream cones.12) Refer to Figure 6.15. At point A, the slope of the indifference curve isA) -0.67.B) -1.5.C) -3.0.D) indeterminate because the marginal utilities are unknown.13) Refer to Figure 6.15. If the price of an ice cream cone is $2, the price of ice cream sandwiches isA) $2.B) $3.C) $50.D) $100.14) Refer to Figure 6.16. If the price of a hot dog is $2, Jason's income isA) $25.B) $200.C) $300.D) indeterminate because the price of sandwiches is not given.15) Refer to Figure 6.16. Why was Jason NOT maximizing his utility at point C?A) He is not spending his entire budget.B) His marginal utility per dollar spent on the last sandwich is greater than his marginal utility per dollar spent on his last hot dog.C) His marginal utility per dollar spent on the last sandwich is less than his marginal utility per dollar spent on his last hot dog.D) He is maximizing his utility at point C.16) Refer to Figure 6.16. The highest indifference curve depicted is the one on which point D lies. Why is Jason NOT maximizing his utility at point D?A) He cannot afford point D.B) His marginal utility per dollar spent on the last sandwich is greater than his marginal utility per dollar spent on his last hot dog.C) His marginal utility per dollar spent on the last sandwich is less than his marginal utility per dollar spent on his last hot dog.D) He is maximizing his utility at point C.17) We derive the demand curve for X from indifference curves and a budget constraint by changing theA) level of income.B) price of X.C) price of Y.D) consumers? preferences.18) Assuming the properties of normal indifference curves, a consumer will maximize his utility where his indifference curve is just tangent to his budget constraint.19) An indifference curve is a set of points, each point representing a combination of two goods, all of which represent the same total utility.

At equilibrium, the slope of the indifference curve is. A. equal to the slope of the budget line B. greater than the slope of the budget line C. smaller than the slope of the budget line D. either equal, larger, or smaller than the slope of the budget line

If the tastes of a consumer satisfy the assumption of transitivity, her indifference curves must:Group of answer choicesNot cross the axesHave a positive slopeNot cross one anotherBend toward the originAll of the above

Which of the following scenarios is consistent with a consumer's optimal choice?The budget line intersects the indifference curve at multiple pointsThe budget line is tangent to the indifference curveThe budget line intersects the indifference curve at one pointThe budget line is above the indifference curve