pick the 1st graph at the top Subscribe Utility Explain one of the graphs below.
ID: 1147162 • Letter: P
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pick the 1st graph at the top
Subscribe Utility Explain one of the graphs below. Make sure you discuss the implications of the shift in the c Are you better or worse off after the shift? Given the shift will your consumption of pizzas and movies increase or only one? Which one? What might cause the shift? urve If you choose the intersecting curves chart, make sure you explain why this is an impossible situation For your responses create a dialog to increase your understanding of utility 1/22/2018 W3: Discussion Que 10 Pizas per wek 10 Pizzas per week Substitution Income effect effect 10 Start a New Thread Filter by: All Threads 10 Pizzas per week There are no threads in this topic. tps:/lupperiowa.brightspace.com/d2Me/48418/discussionsExplanation / Answer
Graph Picked - Intersecting curves
Each indifference curve indicates the various combinations of two goods that provides the same level of satisfaction.
A bundle that contains greater quantity of either one good or both the goods relative to the other budle provides greater satisfaction.
In given case, we have two indifference curves I and I'
Bundle i lies on both I and I' while bundle k lies on I and bundle j lies on I'
As bundle k and i lies on same indifference curve, I, they provides same level of satisfaction.
on the other hand, as bundle j and i lies on the same indifference curve, I', they provides the same level of satisfaction.
Since, the level of satisfaction provided by the bundle i is similar to the level of satisfaction provided by the bundle k and j, it can be concluded that both bundle k and j also provides the same level of satisfaction.
However, this is not possible because bundle k has more quantity of both movie rentals and the pizza than bundle j.
This means bundle k provides greater satisfaction than bundle j.
This conclusion indicates that it is impossible that bundle j, k, and i can provide same level of satisfaction.
This means that two indifference curves can never intersect each other and the situation provided in the graph in an impossible situation.
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