1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Microeconomics

Discussion in 'BlackHat Lounge' started by pamparam, Oct 13, 2013.

  1. pamparam

    pamparam Registered Member

    Joined:
    Jan 2, 2013
    Messages:
    89
    Likes Received:
    5
    Maybe someone of BHW members is good in microeconomics and could help me to answer one question?

    What kind of preference do this indifference curve represent?

    curve.jpg
     
  2. handwriting

    handwriting Newbie

    Joined:
    May 7, 2013
    Messages:
    1
    Likes Received:
    0
    Supply and Demand are increasing at the same rate. The higher the supply the higher the demand so the price stays the same.
     
  3. erickishere

    erickishere Elite Member

    Joined:
    Nov 27, 2012
    Messages:
    3,162
    Likes Received:
    1,162
    I hate economics..cot damn. Its unbelievably hard lol. My professor told me that learning economics uses the same brain parts as learning a different language.

    Mind = blown when my professor told me that
     
  4. Orbit143

    Orbit143 Senior Member

    Joined:
    Aug 8, 2010
    Messages:
    893
    Likes Received:
    588
    Location:
    /home
    Weird, on those axis there should be P and Q or something, then it would be a really weird Demand curve.
     
  5. pamparam

    pamparam Registered Member

    Joined:
    Jan 2, 2013
    Messages:
    89
    Likes Received:
    5
    But x1 is decreasing.
     
  6. SYKing

    SYKing Jr. VIP Jr. VIP Premium Member

    Joined:
    Apr 22, 2010
    Messages:
    2,253
    Likes Received:
    369
    Occupation:
    Student
    It's demand curve , Law of demand says ; When Price increase Qd decreases simultaneously When Price decrease Qd increases
     
  7. LakeForest

    LakeForest Supreme Member

    Joined:
    Nov 11, 2009
    Messages:
    1,269
    Likes Received:
    1,802
    Location:
    Location Location
    time to make a fool of myself. the axis represent 2 goods/"opportunities", not supply and demand, because x1 and x2. There is no price or quantity.

    um. well it looks like 3 PPF curves, the curve shape and the axis labeling suggest this. So this is a supply side indifference curve(wat)...because it's concave? I think it's supply side because it shows a high opportunity cost(concavity shows this. you have a FAST drop to gain one at the expense of the other, whereas in a convex curve it's gradual. landing a plane opposed to pushing a boulder off a cliff; decision vs force. this is circumstantial and a fairly layman explanation). People can more easily choose to substitute, but it takes a lot more resource, thought, and missed opportunities to switch factory production. Or it could be the most intense consumer opportunity cost ever...like are you going to cut off your left leg or right arm to gain the most utility?...

    um. well, we know the curves are rational, because...because they dont criss-cross...

    The curves on the right have a superior preference to the ones on the left...because bigger numbers there(this, this is econ)...and points further to the right of the right-most curve are preferred, but currently unattainable, or else there would be a curve there and would be factored in the present day calculation of indifference as opposed to being a projection.

    was this all there was in the question? what is an acceptable answer? is the graph correct? I need an adult.
     
    • Thanks Thanks x 1
  8. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

    Joined:
    Jan 27, 2009
    Messages:
    2,468
    Likes Received:
    10,148
    It 's a trick question.

    These curves are concave, indifference curves must be convex. Why? Because there is the assumption of diminishing marginal rates of substitution.

    See this youtube video for a detailed explanation of what the above means. Now that we solved your homework, go make some $ :)
     
    • Thanks Thanks x 2
  9. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

    Joined:
    Jan 27, 2009
    Messages:
    2,468
    Likes Received:
    10,148
    :facepalm: Your professor is a wannabe loser :)
     
  10. Aaric

    Aaric Elite Member

    Joined:
    Mar 7, 2010
    Messages:
    1,576
    Likes Received:
    1,121
    Gender:
    Male
    Location:
    USA
    represents shutdown and i am not getting anything due to it.
     
  11. pamparam

    pamparam Registered Member

    Joined:
    Jan 2, 2013
    Messages:
    89
    Likes Received:
    5
    Thank you all very much. I have one more question which is the last. I think I know the answer, but I want to check it.

    How the indifference curve should look like if y-axis is tea (in cups) and x-axis is honey (in spoons), and a person only consumes a cup of tea with 3 spoons of honey? Draw the graph!

    My answer: Goods are perfect compliments so indifference curve should be like this: indiffperfcomp.png is it correct?