Microeconomics

Jeffrey M. Perloff

Chapter 4 Consumer Choice - all with Video Answers

Educators

Section 1

Preferences

00:26

Problem 1

Give as many reasons as you can why we believe that economists assume that the more-is-better property holds and describe how these explanations relate to the results in the Application "You Can't Have Too Much Money."

Jennifer Stoner

Numerade Educator

01:23

Problem 2

Can an indifference curve be downward sloping in one section, but then bend backward so that it forms a "hook" at the end of the indifference curve? (Hint: See Solved Problem 4.1.)

Kaylee Mcclellan

Numerade Educator

07:17

Problem 3

Give as many reasons as you can why we believe that indifference curves are convex and explain.

Md.Daniyal Arshad

Numerade Educator

03:18

Problem 4

Don is altruistic. Show the possible shape of his indifference curves between charity and all other goods.

Oluwadamilola Ameobi

Numerade Educator

00:47

Problem 5

Arthur spends his income on coffee and cola. He views coffee as a good but cola as a perfect substitute, in that he prefers to consume cola over coffee. Draw his indifference curve map.

Kaylee Mcclellan

Numerade Educator

01:15

Problem 6

Miguel considers tickets to the Houston Grand Opera and to Houston Astros baseball games to be perfect substitutes. Show his preference map. What is his utility function?

Kaylee Mcclellan

Numerade Educator

01:51

Problem 7

Sofia will consume hot dogs only with whipped cream. Show her preference map. What is her utility function?

Kaylee Mcclellan

Numerade Educator

02:15

Problem 8

Which of the following pairs of goods are complements, which are substitutes, and which are unrelated? Are the goods that are substitutes likely to be perfect substitutes for some or all consumers?
a. Pepsi and Coca-Cola
b. $A$ razor and a blade
c. A Panasonic CD player and a JVC CD player
d. Apple iPods and a TI financial calculators

Kaylee Mcclellan

Numerade Educator