which the video then finish the 8 questions.


Go to chapter 16 – Consumer Theory for videos on budget constraints,indifference curves and making choices.

all the question is about Indifference Curve

10.What’s held constant along each line?

11.What happens when the constant variable increases? Explain in words and graph.

12.What happens when the constant variable decreases? Explain in words and graph.

13.Explain the slope of each line. Use symbols, Economic Terms and regular English words.

14.Explain WHY the slope of the Indifference curve and Isoquant are not constant along the line. What does it mean? Give an example, a story to illustrate why the lines curve. Use the symbols to show what is happening that makes the lines curve.

15.What does it mean when the Indifference curve and budget constraint touch? Explain in symbols and words. Do same for Isoquant and Isocost.

16.What does it mean when the budget constraint intersects the indifference curve at two points?

Explain in symbols and words.

Do same for Isoquant and Isocost.

17.Give examples where the budget constraint can be kinked. Is this also possible for the Isocost line?

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