Q15 plz help fast! All info that is needed is there ppose the utility function of U(x1, x2) = x1 1/2x21/2 and the budget constraint of p1x1+p2x2=m. let's assume that p1=$1, P2=$2, and m=$120. Find the optimal bundle
Q: Calculate the effective annual interest rate for 18% corresponding to each of the following: (a)…
A: The real interest rate received or paid on a loan or investment after taking compounding effects…
Q: Enforcing financial contracts between borders can be a challenge because All of the above Businesses…
A: Financial contracts play a critical role in facilitating global finance and supporting economic…
Q: The graph shows the rental market for apartments in Alexandria, Virginia. If the city government…
A: A "price ceiling" is a government-imposed limit on how much can be charged for a particular good or…
Q: Discuss law of variable proportion
A: Variable factors are known as those factors of production which change with the change in output.…
Q: Assume that the United States invests heavily in government and corporate securities of France. In…
A: Since you have posted multiple questions, we will provide the solution only to the first question as…
Q: What is the equivalent annual cost in years 1 through 11 of a contract that has a first cost of…
A: The annual worth refers to the net of all the gains and costs incurred over a period of one-year. AW…
Q: Suppose supply is P= 4 + (1/4)Qs and demand is P= 58 ―(1/2)Qs. At a glance, can you tell whether…
A: The equilibrium occurs where the demand and supply forces are equal. The burden of tax is shared…
Q: Suppose Hondamaha, a motorcycle manufacturing firm headquartered in Japan, builds a production plant…
A: In economics, an investment refers to the purchase of goods that are not consumed today but are used…
Q: Во ein g Inv est Do n't Air bus Air bus Inv est Do n't Inv est (-25,-25) (170,0) (0,190) Do (0,0)…
A: A payoff in game theory is the benefit or reward that a player receives as a result of their chosen…
Q: What was the rate of inflation between 2015 and 2016?
A: As given CPI for three years, using 2016 as the base year: 1. 2015: 108 2. 2016: 100 3. 2017: 94…
Q: 25 20 15 10 5 O P COUNTRY 1 VIO s1 FIP d1 EQ 0 3 6 9 1215182124 INTERNATIONAL MARKET P 25 20 15 10 5…
A: International trade involves the import and export of goods and services, and it allows countries to…
Q: You are a hotel manager considering four projects that yield different payoffs, depending upon…
A: In this case, we have to discuss the variance of the project. Variance is the parameter which…
Q: Retainer 0 1 Expenses 2 Revenue N Years How much can you afford to spend on the first year expenses…
A: A hurdle rate, which is also know as the minimum acceptable rate of return (MARR), is the minimum…
Q: Consider the following cash flow diagram: $10 $10 $10 $10 If the interest rate is 10% per period,…
A: The future value of a series of cash flows will be computed as total value of the future amount of…
Q: uppose the demand of a product decreases. What will be the effect on the market equilibrium price…
A: The fundamental ideas of economics, supply and demand, explain how the costs and amounts of goods…
Q: A company plans to invest $15,000 dollars on new equipment with an 8 year life to reduce operating…
A: Net present value (NPV) will be calculated as a difference among the present value of cash inflows…
Q: Suppose an individual has the following utility function: U(X,Y)= min{X, 2Y}, and they choose…
A: U(X , Y) = min ( X , 2Y) here derive the marshallian demand function The above utility function…
Q: Consider a hypothetical small island nation in which the only industry is weaving. The following…
A: Physical capital can be defined as the capital required to produce goods and services. This may…
Q: Suppose that your maximum willingness to pay for a bicycle is $331. The actual price of a bicycle…
A: Consumer surplus is an economic concept that refers to the difference between the maximum amount a…
Q: 3. What may cause a hyperinflation? Will the Fed's actions to expand the money supply cause…
A: Hyperinflation is a quick and extreme expansion in the general price level of labor and products…
Q: What is the difference between a closed and open economy. Define in a well manner.
A: A nation with an open economy is one that interacts economically with other nations through trade,…
Q: Define the proper meaning of economic prosperity. In detail
A: When a society achieves long-term, steady economic growth and growing living standards, it is said…
Q: When the investment accelerator is large, expansionary fiscal policy is investment accelerator is…
A: Expansionary fiscal policy refers to the money supply in the economy by the government. This is done…
Q: A typical firm in long-run equilibrium in an industry with identical firms has a cost function given…
A: A perfectly competitive market has a large number of identical firms. In long run, each perfectly…
Q: Country A Textiles 4 Soybeans 4 5 The numbers in the table indicate the number of hours required to…
A: Opportunity cost and relative price: The value of alternative opportunities foregone and sacrificed…
Q: 7. Demand and supply of loanable funds are releted to the laws of demand and supply. O True O False
A: Loanable funds refer to the income that individuals and entities have decided to save and loan out…
Q: If the goal of government is to influence consumer behavior concerning one good, it is most…
A: Introduction Consumer behavior is the study of how people, communities, and organisations decide…
Q: how GDP in the PHIlippines (2017-2022) affect the jollibee corporation, with reference
A: The gross domestic product (GDP) of the Philippines can have an impact on the performance of…
Q: If Fig. A represents the market for unskilled labor, what will be the impact of the imposition of…
A: The minimum wage, as the name suggests, is the minimum remuneration that an employer is legally…
Q: Describe the five (5) different types of legal systems within which international businesses may…
A: Therefore, the legal system must offer a means of ascertaining the veracity and justice of the…
Q: Consider the following data (all values are in billions of dollars): (b) Currency Transactional…
A: Money multiplier relates the monetary base to the supply of money.The formula to compute the…
Q: PRICE (Dollars per used air fryer) 180 150 120 60 30 0 4 Clancy 1 X Eileen 00 Hubert Kate D + 0 00…
A: Producer surplus is the additional profit or benefit that producers receive above and beyond their…
Q: Assume a water market, and let MB denote the marginal benefit from spraying fertilizers while MC…
A: Environmental economics, which is a branch of economics that deals with the economic analysis of…
Q: Suppose Friendly Airlines is considering signing a long-term contract with the union representing…
A: A nominal wage is the money that is being paid by the Friendly Airlines to the unions. It does not…
Q: 14. Based on the following diagram, hamburger is M($/wk) E A normal good b. A luxury good C. d. e. E…
A: As per the guidelines answer is provided to the first question i.e. Q14. "Income is an important…
Q: In circumstances of imperfect information should one expect the market to be efficient? Explain…
A: imperfect information occurs where the information is not perfect. The asymmetric information is…
Q: (ALL OWNERSHIP GOES TO CENGAGE) The following graph represents the demand and supply for blinkies…
A: The government levies taxes on people's salaries and corporate profits, or it adds them to the cost…
Q: I am confused. Help me What can we predict about the economy of the US for the next 10 years.…
A: The mechanism a society uses to create, distribute, and consume products and services is referred to…
Q: (-) in front of those numbers. a. Calculate real GDP for 2000 using 2010 prices. billion. $18596.67…
A: For the years 2000 through 2019, the table provides data on nominal GDP and GDP deflator. Real GDP…
Q: In many developing nations, young women have lower enrollment rates in secondary school than do…
A: There is a positive relation between a rise in the level of education opportunities for young women…
Q: Suppose a monopolist has MC= 4 and faces the demand curve P = 94 ―(1/6)Qd. How much does the…
A: A monopolist is a single producer in the market selling goods with no close substitutes and having…
Q: What are globally important financial institutions? List the main ones and explain when they first…
A: Financial institutions are organizations that provide financial services and products to their…
Q: Naomi consume two goods, z and y. She spends 25% of her income on x and 75% of her income on y. If…
A: The term "income elasticity of demand" describes how responsive a given good's quantity demand is to…
Q: A monopoly is considering selling several units of a homogeneous product as a single package.…
A: A monopoly is selling homogenous products as a single package. The optimal number of units to put…
Q: During any year, I can consume any amount that doesnot exceed my current wealth. If I consume c…
A: Most options demand decision-makers considering costs and benefits at various points in time.…
Q: The upper limit of the 95% confidence interval is (rounded)....
A: Sample mean = 67 sample standard deviation(sd.) = 7.509 The normal distribution value for 95%…
Q: The following graph gives the labor market for laboratory aides in the imaginary country of…
A: Demand-supply equilibrium: The demand function reflects an individual’s willingness to pay for each…
Q: 6. Low-skilled workers operate in a competitiv market. The labor supply is QS = 10W (where W is the…
A: equilibrium wages and quantity of low skill labor refers that the point where wages and quantity of…
Q: An 8.5% account earns continuous interest. If $2500 is deposited for 5 years, what is the total…
A: As given interest rate = 8.5% Principal amount = $2500 Time = 5 years
Q: Suppose that the firm has production function F(L,M) = 4L1/2M1/2 (where L is the number of workers…
A: We have the production function:- F(L,M) = 4(L^0.5)(M^0.5)
Q15 plz help fast! All info that is needed is there
ppose the utility function of U(x1, x2) = x1 1/2x21/2 and the budget constraint of p1x1+p2x2=m. let's assume that p1=$1, P2=$2, and m=$120. Find the optimal bundle.
Step by step
Solved in 2 steps with 1 images
- q15 please help fast all info is thereSuppose the utility function of U(x1, X2) = x, 1/2x21/2 and the budget constraint of p1x1+p2x2=m Let's assume that p1=$1, p2=$2, and m=$120. Find the optimal bundle.solutions. Question 1 Calculating MRS for CD Utility Functions (a) If a consumer has a CD utility function 0.4 0.6 U(91,92) = 994926, calculate MRS1,2. (b) If a consumer has a CD utility function Ima kdown1 calculate MRS1,2. (c) If a consumer has an utility function noltan asd Tor sympy ,1-α U(91,92) = 91 92 llib et (.) orde (hing aid tol bholup U(91,92) = a ln(91) + (1 - a) ln(92), diw sonuanos of calculate MRS1,2. Is it the same as the result in the previous part? (Note: Recall that we discussed the concept of ordinal utility in class, which means only the order of utility matters, not its magnitude. In function is a monotone transformation on the CD utility function. Notice that In (qq) = a ln(9₁) + (1 - a) ln(92). This example verifies that a monotone transformation does not change *(S) sidshav the consumer's indifference curves.) wobei/ (d)7. Bob receives utility from days spent traveling on vacation domestically (D) and daysspent traveling in a foreign country (F) as given by the utilityU(D; F) = DFThe price of a day spent traveling domestically is 160 pounds and in a foreigncountry 200 pounds. Bobís annual budget for traveling is 8000 pounds. (a) Find Bobís utility maximising choice of days traveling domestically and of daystravelling in a foreign country. Find also his utility level from consuming thatbundle. Suppose that the price of domestic traveling increases to 250 pounds per day.Denoting his budget for traveling x, (suppose by now that it is unknown) findthe demand for D and F under the new prices as a function of x.
- 9 of 15 Laura has an income of 100 and she has to spend it to buy daisies (x₁) and daffodils (x2). Her preferences are represented by a Cobb Douglas utility function u(x1,x2)= x1x2. If daisies are twice as expensive as the daffodils, what would her optimal bundle be? O Buy only daffodils O Buy only daisies O Buy twice as many daffodils as daisies O Buy twice as many daisies as daffodils O Buy same amount of daisies and daffodils O No answer.I need help with my homework assignment that i dont undertsand. Suppose a consumer has a utility function given by U(X,Y) = MIN(X, 2Y). The consumer has $90 to spend (M = $90). The Price of good Y is PY = $1. Using a graph, sketch the consumer’s demand curve for Good X. Make sure to identify three points on the demand curve. Make sure your graph is neat, accurate, and scaled properly.A consumer is making purchases of products Alpha and Beta such that the marginal utility of product Alpha is 63 and the marginal utility of product Beta is 40. The price of product Alpha is $9, and the price of product Beta is $5. The utility-maximizing rule suggests that, to stay within a given budget constraint, this consumer should Multiple Choice O O O increase consumption of product Beta and increase consumption of product Alpha. make no change in the consumption of Alpha or Beta. increase consumption of product Beta and decrease consumption of product Alpha. increase consumption of product Alpha and decrease consumption of product Beta.
- Currently, Paula is maximizing utility by purchasing five TV dinners (T) and four LeanCuisine Meals (L) each week. Suppose both T and L cost $5 each.a. Graph Paula’s initial utility-maximizing choice.b. Suppose the price of T falls by $1 and the price of L rises by $1.25. Can Paula stillafford to buy her initial consumption choices? What do you know about her new budgetconstraint?c. Make a new graph to show why Paula will choose to consume more T and less Lgiven her new budget constraint to maximize utility. Is her utility increased, decreased,or unchanged given the price change? [Hint: try to make the graph as big as possible tosee how the utility is tangent/intersects with the lines more easily] d. In part (b), suppose another scenario where the price of T rises by $1 and the priceof L falls by $1.25. Is Paula’s utility increased, decreased, or unchanged given the pricechange?Assume that a person's vitility function is given Assume by the following function. TU = 2x¹¹2,¹/2 also that the price of x is 22 and the price of is 26 and that the budget is 2240. what is the optimal amount of goods x and that should be purchused with this budget? of y уPlease no written by hand and no emage Consider a consumer that consumes 2 teaspoons of sugar with each cup of coffee. For each cup of coffee with sugar the consumer gains 10 utils.a) Write down the utility function that gives the total utility if the consumer consumes S teaspoons of sugar and C cups of coffee. The consumer has assigned £7 per week to be spent on drinking coffee with sugar. The current price of coffee is £0.50 per cup and each spoon of sugar costs £0.10. b) Calculate the optimal weekly consumption bundle for this consumer.c) Does the consumer view C and S as complements or substitutes?
- 3. Finding the optimal combination of two goods - $2. Suppose that Larry buys Larry enjoys consuming both cheese and fruit. Each pound of cheese costs Pc = $1, and each pound of fruit costs PF 300 pounds of cheese and 200 pounds of fruit per year. The following graphs show his marginal utility curves for cheese and fruit. At his current consumption level, Larry's marginal utility from consuming the last pound of cheese he bought is MUC S 30 utils per pound, and his marginal utility from consuming the last pound of fruit he bought is MUF = 30 utils per pound. 60 40 30 IL 20 10 400 500 600 50 40 A 30 B C D 20 10 0 0 100 Is Larry currently maximizing his utility? Combination 200 300 CHEESE (Pounds per year) 300, 30 (Pounds per Year) 200 400 300 No; he could buy less cheese and more fruit, not spend any more money, and be better off. O No; he likes fruit and cheese more than other goods, so he should buy more of both. O No; he could buy more cheese and less fruit, not spend any more money,…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?5. Consider a consumer whose utility function isu(x,y) = sqrt(xy) (MRS(x,y)=y/x)a. Assume the consumer has income $120 and initially faces the prices px = $1 and py = $1. Howmuch x and y would they buy? Draw the budget constraint and the demands. b. Next, suppose the price of x were to increase to $2. How much would they buy now? Draw thisin the same figure.c. Decompose the total effect of the price change on demand for x into the substitution effect and theincome effect. That is, determine precisely how much of the change is due to each of thecomponent effects. (Hint: See the lecture notes for the two properties that determine the locationof “z”, the reference point for distinguishing the income and substitution effects.)
