{"id":127535,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/explain-the-concept-of-consumer-equilibrium"},"modified":"2017-08-16T06:21:09","modified_gmt":"2017-08-16T06:21:09","slug":"explain-the-concept-of-consumer-equilibrium","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/explain-the-concept-of-consumer-equilibrium\/","title":{"rendered":"Explain the concept of consumer equilibrium"},"content":{"rendered":"<div class=\"the_content_wrapper\">\n<p>1. A.&nbsp; Explain how one derives (gets) the indifference curves from a 3-dimensional utility function. Draw a graph and explain. Which principle explains the concave shape of the utility function? Why?<\/p>\n<p>B. Explain the concept of Consumer Equilibrium.&nbsp; How does it relate to utility maximization?&nbsp; Draw a graph and show where consumer equilibrium occurs.&nbsp; Write down the equation that holds at the consumer equilibrium.<\/p>\n<p>C. Explain how one can derive (get) the Law of Demand from Consumer equilibrium.<\/p>\n<p>D. Assume that there are 2 goods, X and Y and P(X) = $20 and MU(X) = 100, and p(Y) = $50.&nbsp; Assuming that the consumer is currently maximizing her utility, compute MU(Y).<\/p>\n<p>SHOW THE EQUATION YOU USE AND SHOW YOUR COMPUTATION.<\/p>\n<p>2. A. Define and explain Short Run cost curves (TOTAL, AVERAGE AND MARGINAL COST CURVES).&nbsp; DRAW GRAPHS AND LABEL EACH CURVE ON THE GRAPH. Explain the \u201claw of diminishing returns\u201d. State the economic reason behind it.<\/p>\n<p>B. Explain the Long Run Average Total Cost curve. Explain the concepts of Economies of Scale; Constant Returns to scale; Diseconomies of scale. Draw a graph.<\/p>\n<p>3. A. \u201cThe second hamburger tests as good as the first hamburger\u201d. Which principle does this statement violate? WHY? Explain briefly.<\/p>\n<p>B. \u201cThe more I eat, the hungrier I get\u201d. Draw the Utility function for this statement. Which is the shape of the Utility Function in this case?<\/p>\n<p>4. A. Explain why the Marginal Cost curve (MC) cut the Average Total Cost curve at the lowest (minimum) point. Use the example of GPA and Semester Average to explain it.<\/p>\n<p>B. Draw the TC = TFC + TVC curves. Explain why the shape of the TC curve is&nbsp;concave&nbsp;first and becomes&nbsp;convexlater: STATE THE REASONS BEHIND THESE SHAPES. (Note: you need to state 2 reasons).<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>1. A.&nbsp; Explain how one derives (gets) the indifference curves from a 3-dimensional utility function. Draw a graph and explain. Which principle explains the concave shape of the utility function? Why? B. Explain the concept of Consumer Equilibrium.&nbsp; How does <a href=\"https:\/\/www.benedictsol.com\/blogs\/explain-the-concept-of-consumer-equilibrium\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-127535","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/127535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=127535"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/127535\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=127535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=127535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=127535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}