two-good model, a consumer starts with an intial endowment of 10.00 units of good 1 and 13.00 units of good 2. If this consumer all of her units of good 2. she would be able to afford 8.67 additional units of good 1. Given this information, what is the slope of this sumer's budget line?
Q: Explain how each ofthe following shocks can impact the demand orsupply of oil: A. A worldwide econom...
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for yo...
Q: What is the best explanation of opportunity cost in economics. Explain with example.
A: Opportunity cost The cost of choosing one option/things over another is known as opportunity cost.Th...
Q: A textile firm in a competitive industry employs a particularly efficient manager to run the operati...
A: Cost Curves show the different level of cost that a firm or individual incurs in producing different...
Q: Suppose that John's MPC is constant at 4/5. If he had no income at all, he would have to borrow $2,0...
A: The marginal propensity to consume (MPC) is a concept in economics that refers to how much of a boos...
Q: Corporate Income Taxes 240 Government Transfer Payments. 522 US Exports. 78 Undistributed Corporate ...
A:
Q: will be the market price? If both firms collude and share the output equally, what is the revenue to...
A: Assuming two firms are there X and Y , production happens only with fixed cost and both the firm pro...
Q: Explain the fundamentals of demography
A: Demography refers to the concepts and methods used to examine human populations.
Q: The CDC estimates that cigarette smoking causes more than 480,000 deaths 3. each year in the US. Mar...
A:
Q: 1. A factory producing a certain type of electronic component has fixed cost of 250 per day and vari...
A: We will answer the first question since the exact one was not specified. Please submit a new questio...
Q: Show that if the multiplier is one, the slope of the savings schedule is one.
A: Multiplier really intends that with expansion in speculation there is ordinarily expansion in pay.
Q: Exercise 3 Consider the MPL is currently given by MPL=30/L. The supply of labor in the country is L=...
A: Frictional unemployment: An individual is supposed to be frictional unemployed when a person m...
Q: Free markets___ 0. always fail to produce the optimal quantity and/or price 0. can fail to provide t...
A: Equilibrium is achieved at the output level where Qs equals Qd
Q: Q TC AVC AFC MC 10 200 Y 20 7 X Refer to the table. What is the value of the variable Y? a. $200 b. ...
A: Q TC AVC AFC MC 0 - 10 200 Y 20 7 X 6 6) MC=change in TCchange in quantityMC=20...
Q: Consider any market that has a demand curve given by: Qd = 125 - 0.4P. Being the total quantity dema...
A: Oligopoly refers to the situation in the market where only a few sellers exist in the market. The ma...
Q: 9. A higher indifference curve shows
A: To find : What higer indifference curves
Q: • Discuss how individuals and businesses can help move our economic system in a sustainable directio...
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and scarcit...
Q: The graph contains the relevant cost curves for a perfectly (or purely) competitive firm. Move point...
A: In a perfectly competitive firm, Price is constant so profit is maximised at a point where price is ...
Q: A Nash equilibrium occurs if all players in a game play their best strategies O a. given what their ...
A: Nash equilibrium is achieved at a point where no player can be made better off without making others...
Q: $11 $48 $4 $3 $1 D. 75 Quantity per period 20 50 Use the graph above to answer the following questio...
A: Producer surplus refers to the area above the supply curve and below the price. It is the difference...
Q: Duke Energy's prices are subject to approval by a regulatory agency. If the regulatory agency sets a...
A: When a firm follows Average cost pricing, price is set equal to average cost. The firm is said to mi...
Q: Identify the effect of surplus budget on either demand or supply curve and the equilibruim interest ...
A: Loanable funds market equilibrium occurs when Demand for Loanable funds is exactly equal to supply f...
Q: Financial liberalization is eliminating various forms of government intervention in financial market...
A: The liberalization refers to the process of reducing the government intervention in the economic act...
Q: Ronald McDonald decides to install a fuel storage system for his tarm that will save him an estimate...
A: Given, Ronald McDonald decides to install a fuel storage system for his farm that will save him an e...
Q: A widget has an opportunity cost of 4 wadgets in Saudi Arabia and 2 wadgets in the United States. Gi...
A: Given : A widget has an opportunity cost of 4 wadgets in Saudi Arabia and 2 wadgets in the United St...
Q: 1.what standard could be used to defined the good life? 2.how can the standard serve as a guide towa...
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: Currently, Social Security is funded by current taxes. It is projected that in 2024, current taxes w...
A: Social Security benefits are funded by a dedicated payroll tax, which workers pay into as they earn ...
Q: BDO pays 8% simple interest on its savings account balances. BPI pays 7% interest compounded annuall...
A: For BDO it is given that Principal amount (P) = P5000 Interest rate (r) = 8% Time(t) = 10 years For ...
Q: Some workers are “skilled”. Each of them on average will install 4 packages per day. The rest of the...
A: We see that for any given wage quantity supplied for unskilled worker is 4 times that of a skilled w...
Q: Namin's output has been constant at P every year. In year 0, it finds an investment project that wil...
A: Output = Y Output increases by 0.05Y each year from year 2. Interest rate = 4% = 0.04
Q: For each of these situations, answer what happens to į) demand, ii)_supply, iii) equilibrium price a...
A: There are many factors that shift the demand and supply curve either in the leftward direction or in...
Q: 4. A consumer has preferences such that their Hicksian demands for r and y are given by r = and y, =...
A: Hicksian Demand functions : xh = U/6 & yh = U/3 Px = 6 , Py = 6 U = 10 We find the i...
Q: Two new instruments are being considered for an engineering firm. The firm uses a 12%/year expected ...
A: Given information Option 1 Initial investment=$120000 Annual return= $17500 n=12 years Option 2 Init...
Q: When the government finances deficit spending through the issue of government bonds, the government ...
A: Fiscal Deficit Fiscal deficit refers to a situation in which government spends more than its revenu...
Q: 53. The upper portion of the kinked demand curve is relatively More inelacttio
A: To find : Upper portion of kinked demand curve is more relative to what.
Q: The minimum wage has its greatest impact on the market for teenage labor. Oa. True Ob. False
A: The demand curve for labour, under the ceteris paribus assumption, shows the amount of labor employe...
Q: Tammy enjoys fixing up old clocks, which she then sells for p. = 100 each. Her cost of fixing each c...
A: Tammy wants to maximize profit given by, π(c)=100c-2c-c2F.O.C100-2-2c=0c*=49 The social optimum is...
Q: . Demand curve can be derived from
A: To find : How can be demand curve derived.
Q: man invested P60,000 now for the college education of his 2-year old son. If the fund earns 14% effe...
A: Given: Amount=P 60000 Interest rate=14% To find: Amount son would get each year starting from his 17...
Q: In the short-run framework, budget deficits should: Choose correct and explain why never be run sin...
A: A budget deficit refers to a condition when government expenses exceed government revenue.
Q: Mario and Chris are the only two consumers in a particular market for train tickets. The following t...
A: Market demand is the horizontal sum of all consumers demand for a good in a given period for differe...
Q: Compare and contrast the views of neoclassical economists, environmental economists, and ecological ...
A: The market is explained by Neoclassical economics in terms of human preferences for specific commodi...
Q: ves a payoff totaling $1,000 on January 1, 2017. Suppose that n January 1, 2016, and 245 on January ...
A: Solution to above problem- A) Cost Price Of Bound = P1 = $950 Selling Price = P2 = $1000 Yield on Re...
Q: 8. One characteristic not typical of oligopolistic industry is
A: To find : Which is not characteristics if oligopolistic competition
Q: The government decides to levy a lump-sum taxes by $50 billion which will reduce disposable income. ...
A: Lump sump tax A lump-sum tax is a type of taxation that is based on a fixed amount rather than the t...
Q: All of the following are determinants of demand except
A: To find : Which is not determinants of demand.
Q: equilibrium price wil fell and equibrum quantity will ise
A:
Q: umer demand curve for Professor Stefan Schwarzenegger's dumbbells is given by q = (84 – 2p)², where ...
A: Given, q = (84-2p)2
Q: Suppose the model of interest is Y, A+ BXu+ BX2 + u, where E(uX)-0 and E(u X)= a? and X1 and X2 are ...
A: The coefficient estimates will be the same, but the standard error will be smaller in multivariate r...
Q: Country A is a Solow economy with the following production function F(K, L) AK" L', with A and L exo...
A: At steady state, there is no change in capital per worker and steady state is reached where investme...
Q: Unions in developed nations often oppose imports from low- wage countries and advocate trade barrier...
A: INTRODUCTION No, this kind of rivalry isn't unequal. The Union and the people it represents are the...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a round—trip cost of 2 in gasoline money. He has a total of 10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremys consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.ceriuppose that Isaiah has a weekly fixed budget and spends it all on haircuts and ice cream. At his current combination arof consumption, the marginal utility of the last dollar spent on haircuts is greater than the marginal utility of the last dollar spent on ice cream. Has Isaiah maximized his utility? A C E Yes, because changing his current consumption combination will reduce his total utility B No, because he can increase his total utility by purchasing more haircuts and D fewer ice creams Yes, because he has purchased 2 goods in proportion so that he can get- the maximum utility from each Yes, because he purchased the maximum possible with a limited budget No, because he can increase his total utility by purchasing fewer haircuts and more ice creamsMylie’s total utility from singing the same song over andover is 50 utils after one repetition, 90 utils after tworepetitions, 70 utils after three repetitions, 20 utils afterfour repetitions, 250 utils after five repetitions, and 2200utils after six repetitions. Write down her marginal utilityfor each repetition. Once Mylie’s total utility beginsto decrease, does each additional singing of the songhurt more than the previous one or less than the previousone?
- Amadea spends all her income on pizza,chocolate milk, and music streams. The price of pizza is $4 per slice and price ofchocolate milk $2 per bottle. At Amadea's current consumption level, her marginalutility for pizza is 50 units per slice and for music 100 units per stream. Assuming thatAmadea is a utility maximizer, how much is (a)her current marginal utility for a bottleof chocolate milk, and (b) the price of streams she buys. Show your work. [Hint: Ch 6:Utility-maximizing formula)a. A consumer is willing to trade 3 units of x for 1 unitof y when she has 6 units of x and 5 units of y. She isalso willing to trade in 6 units of x for 2 units of y whenshe has 12 units of x and 3 units of y. She is indifferentbetween bundle (6, 5) and bundle (12, 3). What is theutility function for goods x and y? Hint: What is theshape of the indifference curve?b. A consumer is willing to trade 4 units of x for 1 unitof y when she is consuming bundle (8, 1). She is alsowilling to trade in 1 unit of x for 2 units of y when sheis consuming bundle (4, 4). She is indifferent betweenthese two bundles. Assuming that the utility function isCobb–Douglas of the form U (x, y) = xα y β, where α andβ are positive constants, what is the utility function forthis consumer?c. Was there a redundancy of information in part (b)? Ifyes, how much is the minimum amount of informationrequired in that question to derive the utility function?Praxilla, who lived in ancient Greece, derivesutility from reading poems and from eating cucumbers.Praxilla gets 30 units of marginal utility from her firstpoem, 27 units of marginal utility from her secondpoem, 24 units of marginal utility from her third poem,and so on, with marginal utility declining by three unitsfor each additional poem. Praxilla gets six units ofmarginal utility for each of her first three cucumbersconsumed, five units of marginal utility for each of hernext three cucumbers consumed, four units of marginalutility for each of the following three cucumbersconsumed, and so on, with marginal utility declining byone for every three cucumbers consumed. A poem coststhree bronze coins but a cucumber costs only one bronzecoin. Praxilla has 18 bronze coins. Sketch Praxilla’sbudget set between poems and cucumbers, placingpoems on the vertical axis and cucumbers on thehorizontal axis. Start off with the choice of zero poemsand 18 cucumbers, and calculate the changes in…
- If something has negative marginal utility, what happens to your total utilitywhen you consume it?I like drinking Smirnoff and Stoli Vodka, but I really only careabout the total amount of alcohol I get out of it. They areperfect substitutes. Smirnoff is sold in liter bottles that are100 proof (that’s 50% alcohol). Stoli is sold in liter bottlesthat are 80 proof (40% alcohol). What is my utility functionfor bundles of these two vodkas? What do my indifferencecurves look like?Five consumers have the following marginal utility ofapples and pears:Marginal Utilityof ApplesMarginal Utilityof PearsClaire 6 12Phil 6 6Haley 6 3Alex 3 6Luke 3 12The price of an apple is $1, and the price of a pear is$2. Which, if any, of these consumers are optimizingtheir choices of fruit? For those who are not, howshould they change their spending?
- (a) I like to consume two olives with every shot of vodka. If Ihave more olives or more vodka than that ratio, I just toss theextra in the trash (they are perfect complements). What is myutility function? What do my indifference curves look like? (b) I like drinking Smirnoff and Stoli Vodka, but I really only careabout the total amount of alcohol I get out of it. They areperfect substitutes. Smirnoff is sold in liter bottles that are100 proof (that’s 50% alcohol). Stoli is sold in liter bottlesthat are 80 proof (40% alcohol). What is my utility functionfor bundles of these two vodkas? What do my indifferencecurves look like? (c) Antonin notices he is currently spending all of his money ona bundle (x1, x2) where his marginal rate of substitution isgreater than the relative prices (p1/p2). Can Antonin reach abundle on a higher indifference curve with his current income?Explain clearly and provide a graph with your response. * Note that in (a) and (b), there are different utility…Each day Paul, who is in third grade, eats lunch at school. He likes only Twinkies (t) and soda (s), andthese provide him a utility ofutility = U (t s) =square root (ts).a. If Twinkies cost $0.10 each and soda costs $0.25 per cup, how should Paul spend the $1 hismother gives him in order to maximize his utility?b. If the school tries to discourage Twinkie consumption by raising the price to $0.40, by howmuch will Paul’s mother have to increase his lunch allowance to provide him with the same levelof utility he received in part (a)?Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either callher on the land-line phone for five cents per minute or he can drive to see her, at a round-trip cost of $2 in gasolinemoney. He has a total of $10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses ahandy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values inTable 6.6, figure out the points on Jeremy’s consumption choice budget constraint (it may be helpful to do a sketch)and identify his utility-maximizing point