Microeconomics Answers

How do inefficiencies occur in the market due to externalities.?Explain with Diagram

in what Circumstance Adverse Selection and Moral hazard different. Can one exist without the other.

How do inefficiencies occur in the market due to externalities.? Explain.

explain Quasi Rent and Monopolistic exploitation 

 "Is there a ideal way aggregating individual preferences into Social preferences". Explain using Arrow impossibility theorem. Also give the various voting options with examples.

"As long as preferences are Convex, every Pareto efficient allocation can be supported as competitive equilibrium" Explain using edge worth box.

In equilibrium a consumer was buying 5 units of good A and some of good B. His income was Rs 100 and the prices were PA = Rs 8 and PB = Rs 5. The price of good A falls to Rs 5. By how much does his income need to be compensated so that he is able to buy the (old) bundle at the original equilibrium?

1) What is an income consumption curve? Is it always upward sloping?

2) What is an Engel curve? Is it always upward sloping?

Explain why the marginal rate of substitution of one good for another should decline as more of the good is consumed?

How are total utility and marginal utility curves related? ‘If we know a total utility schedule, we can derive a marginal utility schedule and vice versa.’ Is this correct? Give reasons.