Multiple Questions on Indifference Curves Theory

Overview

Assignment Required: Logical, Numerical, and Graphical analyses all are required: Part A: Theory

1. Explain indifference curves and their properties. 2. Explain budget set and budget line. 3. Explain consumer equilibrium.

Part B: Case Study (Uber vs Careem)

A consumer allocates income between Uber (X) and Careem (Y). Income = SAR 3000, Price of Uber = SAR 30, Price of Careem = SAR 60. Tasks: 1. Derive the budget line. 2. Find intercepts. 3. Explain equilibrium. 4. Discuss competition impact.

Part C: Changes in some variables in the Case Study

• Income increases to SAR 4500 – explain effect.
• Price of Careem falls to SAR 40 – explain substitution and income effects.