Question

15. Economists graphically represent the set of bundles a consumer can afford using a. Demand curves b, supply curves c Indifference curves d, Budget constraints e. Their imaginations shape?

16, which concept best explains why indifference curves are ge drawn with a curved a. consuming more of a particular good as b, Diminishing marginal utility you consume more of a particular good c The change in price ratio that occurs when purchasing items large quantities in d. Dan's inability to draw a straight line

Answer 1

15. The options are

c. Indifference curves (Convex to origin)

d. Budget Constraint (Straight line)

Via the supply and demand curve, the market clearing quantity and price is determined. It is by the indifference curve and the budget constraint, one can determine the set of bundles the consumer can afford.

16. The correct answer is

b. Diminishing marginal utility as a particuar good is consumed more.

The diminishing marginal utility (MU), as a consumption of a good increases is what determines that the indifference curve is shaped convex to origin. The price ratio is a determinant of budget constraint, not the indifference curve.