Question
(a)As a farmer, you must decide how many times during the year you will plant a new crop. Also, you must decide how far apart
(a)As a farmer, you must decide how many times during the year you will plant a new crop. Also, you must decide how far apart to space the plants. Will diminishing returns be a factor in your decision making? If so, how will it affect your decisions? (5 marks)
(b)Consumer equilibrium is achieved when the consumer consumes the best possible combination of two goods with a given amount of income can be shown using indifference curve and budget line. Therefore, explain what is indifference curve and budget line. And illustrate using curve how consumer can achieve the equilibrium level using an indifference curve and the budget line. (5 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started