Q16 please help fast!! Suppose the utility function of U(x1, x2) = ×11/2x21/2 and the budget constraint of p1x1+p2x2=m From the previous question, let's assume that the consumer needs to pay $1 quantity tax on good 1 P1+t=$2, p2=$2, and m=$120. Find the new optimal bundle.
Q: Khaled has developed a new technology device that is so exciting he is considering quitting his job…
A: cost is the value of goods and services which are using for producing , it occurs by the producers ,…
Q: provide an assessment of the major requirements of the municipal budget and reporting regulation
A: Local administrations are an important layer in India's three-tiered governmental structure. In…
Q: The Sun River beverage company is a regional producer of teas, exotic juices, and energy drinks.…
A: Given : Demand per week - 2140 units Time taken for production - Hours * Days * Mins = 5 hours * 5…
Q: What is the effect of religion in globalization?
A: The process of growing interconnection and interdependence of individuals, organizations, and…
Q: A manufacturer can produce at most 110 units of a certain product each year. The demand equation for…
A: Total revenue is the product of price and quantity. Profit is the difference between total revenue…
Q: Suppose five people have houses on the same small lane. They all individually benefit from regular…
A: From given We show that find how much maintenance the current person is buying, we need to find the…
Q: The Stafford plan now offers student loans at 3% annual interest. After two years the interest rate…
A: Given that, Initial interest rate of loans is 3% per annum. Increase in interest rate of loan is 5%…
Q: . In an economy, the total output of all the firms is described by Y = 8 * K^0.25 * L^0.75. For it,…
A: To find the wage bill, we must first find total output (Y) and then subtract the capital account…
Q: Voters rarely get to choose the exact level of spending on a public good. Instead, they are provided…
A: The Leviathan theory is a political theory that was developed by the English philosopher Thomas…
Q: What are some of the benefits of financial globalization? Intertemporal resource reallocation, Risk…
A: Financial globalization has facilitated the movement of capital across borders, allowing investors…
Q: Suppose supply is P= ―3 + (2/5)Qs and demand is P= 51 ― (1/10)Qd. If the government put a tax of $1…
A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium…
Q: First, explain the concept of risk-return trade off. How do you define return? How do you define…
A: Return refers to the profit or earnings an investor makes on their investment. It can be expressed…
Q: (ALL CREDIT GOES TO CENGAGE) Consider the market for electricity. Suppose that a power plant dumps…
A: Here we have to discuss the supply curve which is given as private cost curve and here we have 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: The total revenue and total cost functions are given as TR=500-0.000250² TC = 361250+5Q+0.00020²…
A: Total revenue is the product of price and quantity. Profit is the difference between total revenue…
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: West Trendia has computed its CPI for three years, using 2016 as the base year: 1. 2015: 108 2.…
A: The consumer price index measures the overall change in the price of the market basket relative to…
Q: (a) Explain what is meant by the term "negative externality" in production
A: In production, a negative externality alludes to an expense that is caused by people or society all…
Q: Choose the answer that best explains the relationship between the consumption function and the…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: plz help quick The marginal rate of substitution of nickels for dimes is O negative and constant.…
A: IC(indifference curve) shows the locus of all such points where the consumer is indifferent or…
Q: Explain with relevant examples three (3) ways in which a country is likely to benefit as well as…
A: Introduction The exchange of commodities and services between nations is referred to as…
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: Why is it important for the United States to have laws such as the Sherman Antitrust Act and the…
A: Antitrust laws consists of statutes developed to regulate competition between firms in order to…
Q: With the relevant equations, we can also compute the competitive and monopoly equilibria using…
A: In perfect competition , There exists large no. of sellers and buyers. Incase of monopoly , there…
Q: What are some of the major downsides of being unbanked?
A: Being unbanked can have significant downsides, including limited access to credit, higher…
Q: New Zealand in one year can raise 75 tons of beef or produce 750 boxes of tulips. In the same…
A: In economics, trade refers to the exchange of goods or services between two or more parties. It…
Q: a) What is the Nash equilibrium in this game?
A: The nash equilibrium is the pair of strategies from which none of the players in the game want to…
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: What do you need to open a bank account, if you are under the age of 18? Please help with this…
A: Connecting to the banking system can be done by opening a bank account with any one of the…
Q: Monetary policy directly influences the consumption equation by O a) changing autonomous consumption…
A: The consumption function depicts the relationship between consumption spending and disposable…
Q: Suppose that a financial crisis decreases investment spending by $100 billion and the marginal…
A: Real GDP basically stands for "real Gross Domestic Product." It is an inflation-adjusted assessment…
Q: The following graph shows the daily market for shoes when the tax on sellers is set at $0 per pair.…
A: Demand curve is downward sloping whereas, supply curve slopes upwards. An imposition of tax affects…
Q: Suppose supply is P= 4 + (1/4)Qs and demand is P= 58 ―(1/2)Qd. Suppose at the market equilibrium,…
A: Given At equilibrium, Price elasticity of demand Ed=109 Price elasticity of supply: PS=59 Formula…
Q: The following table shows the amount of tax paid in three countries X, Y and Z. Identify the type of…
A: Tax structure refers to how taxes are levied on individuals or entities based on their income,…
Q: Assume the graph above illustrates a new tax put into the market for soft drinks. S2 is the supply…
A: Taxation can have an immediate impact on the supply of a particular good or service. Specifically,…
Q: In the charter of the EU central bank all member countries are required to keep their fiscal…
A: When a government's total spending exceeds its entire revenue in a certain time frame, there is a…
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: The type of capital goods that serve the activities of many industries is called Question 10…
A: Capital goods are the physical assets that are used in the production of other goods and services.…
Q: Suppose that the Bank of Canada sells 100 million euros from its foreign exchange reserves, and that…
A: Foreign exchange reserves are the foreign currencies that a country's Central bank holds in its…
Q: What can the government of a relatively poor country do to promote economic prosperity? Check all…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The town of Cleanville lies next to a lake, which the residents of the town use for fishing,…
A: The marginal cost implies the increment in production costs generated by the production of…
Q: Daniel Kahneman and the late Amos Tversky are considered to be the founders of modern behavioural…
A: Economic agents are individuals, organizations, or institutions that participate in economic…
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: 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: 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: Derive the firm's average cost and average variable cost curves. What q should the firm choose so…
A: In the perfectly competitive market profits will be maximized by the production of a quantity where…
Q: What are the reasons that young people might decide not to open a bank account?
A: A bank account is a financial account opened and maintained with a bank or financial institution. It…
Q: 10.) Jin Golf Emporium sells golf balls for $31.95 per dozen. The emporium's overhead expenses are…
A: a) Let the price of a dozen golf balls be x. Then the retail price of a dozen golf balls is $31.95.…
Q: When calculating the employment-population ratio, what goes in the denominator? A. The total…
A: People who are willing to do work and have a paid job are referred as employed. People who are…
Q: If in some country personal consumption expenditures in a specific year are $70 billion, purchases…
A: Introduction The value of all finished products and services generated in the economy over a…
Q16 please help fast!!
Suppose the utility function of U(x1, x2) = ×11/2x21/2 and the budget constraint of p1x1+p2x2=m
From the previous question, let's assume that the consumer needs to pay $1 quantity tax on good 1 P1+t=$2, p2=$2, and m=$120. Find the new optimal bundle.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- A consumer has the following utility function: Ulx, y) = xy -y, *21 where x and y represents the quantities consumed of goods X and Y. y 20 What will be the substitution and income effects for X and Yassuming that the consumer attempts to maintain the same level of utility achieved before price of Y increased (that is, when price of Y was $1)? SEx= +0.5 IEx = -0.5 SE, = -0.25 IE- = -0.25 SEx= +0.293 IE = -0.293 SEy = -0.414 IE, = +0.414 SEr= +0.25 IE SE, = -0.75 IE, = -0.75 = -0.25 SEx= +0.414 IEx = -0.414 SEy = -0.293 IE, = -0.207 Income = $3 Px= $1, Py= $2You are choosing between two goods, X and Y, and your marginal utility from each is as shown below. Units of X MUX Units of Y MUy 10 8. 2 2 7 3 4 4 4 4 6. 6 Instructions: Enter your answers as whole numbers. a. If your income is $18.00 and the prices of X and Y are $4.00 and $2.00, respectively, what quantities of each will you purchase to maximize utility? X = units. Y =O units. b. What total utility will you realize? c. Assume that, other things remaining unchanged, the price of X falls to $2.00. What quantities of X and Y will you now purchase? units. X =O units. Y = d. Using the two prices and quantities for X, derive a demand schedule (a table showing prices and quantities demanded) for X. Instructions: Start with the highest price first. Quantity Price DemandedThe figure below shows a consumer maximizing utility at two different prices (the left panel) and the consumer's demand for good X at the same two prices of good X (the right panel). The price of good Yis $4.50. The equation of the budget line passing through point r is R B 60 48 Demand for X Q. 24 18 24 Quantity of X Quantity demanded of X Multiple Choice Y-80 - (10/3)X Y 90 - (10/3)x Y=80 -0.3X Y= 90 - 0.3X Quantity of Y Price of X
- Q16 please help fast all info is there! Suppose the utility function of U(x1, *2) = x1/2x21/2 and the budget constraint of p1x1+P2X2=m. From the previous question, let's assume that the consumer needs to pay $1 quantity tax on good 1 p1+t=$2, p2=$2, and m=$120. Find the new optimal bundle.Now suppose that income goes up to 15oo. Illustrate how the budget constraint will change. If both goods are normal, explain where the new equilibrium will be (your answer might consist of a region of bundles, rather than just one bundle).Mrs. Rochester earns $4500 a week and spends her entire income on computers andpastries, since these are the only two items that provide her utility. Furthermore, Mrs.Rochester insists that for every computer she buys, she must also buy a pastry. a) What is the algebraic equation for Mrs. Rochester’s budget constraint if computerscost $25 each and pastries cost $14 each? How many of each good will she buy andrepresent this on a budget line with pastries on the horizontal axis. b) Draw an indifference curve showing the optimum choice. Label the optimum aspoint A. What would be the marginal rate of substitution at the point thatcorresponds to the optimal consumption choice? Interpret the marginal rate ofsubstitution. c) Suppose the price of pastries increases to $20 and income decreases to $3200. Whatis the new algebraic equation for Mrs. Rochester’s budget constraint? Show theimpact of the new budget line relative to the original budget line. d) What would be the new marginal rate of…
- Suppose a consumer enjoys coffee and tea with utility U-CT. The marginal utility of coffee is MUC-T and the marginal utility of tea is MUT-C. If the price of a cup of coffee is $1.00 and the price of a cup of tea is $1.00 and income is $100, the initial optimal bundle is C-50-T Suppose that the price of tea increases to $2.00 per cup. What is the exact amount of money that would make our consumer just as well off before the price change (find the compensating variation)? (graph it)PROBLEM You are choosing between two goods, X and Y, and your MU from each is shown in the table below. Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase? Using the two prices and quantities of X, derive a demand curve for X. 5. If your income is $9 and the prices of X and Y are $2 and $1, respectively, what maximum total utility for products X and Y that will you realize? Use a number, no decimal value, no commas, no space, no unit of measurement. 6. Assume that, other things remaining unchanged, your income is $9 and the prices of Y is $1, and the price of product X falls to $1. How many units of product X will you purchase to maximize utility? Use a number, no decimal value, no commas, no space, no unit of measurement. please answer all questions. Thanks1/Muhammad’s perceives canned tuna (Y) as an inferior good and fresh tuna (X) as a normal good. If his income increases by 100%, and his income elasticity of both types of tuna is 1. Show the effect of this increase in income on the change in his optimal choice of canned and fresh tuna, highlighting his income-consumption curve. Clearly label your graph. Reflect the proportional changes in your graph 2/ Assume a piece of jewelry and 2 consecutive drops in its price. Also consider Alia’s demand to be relative elastic in the price range from ?1 to ?2, and that she perceives jewelry as a Giffen good in the price range from ?2 to ?3. Draw her price-consumption curve with well-behaved preferences. Clearly label your graph.
- In two commodities world, utility function for a consumer and her income are given respectively. 11 U = x2y2 I= 480 If the price of these goods are Px= 15 and P, = 60 what would be her demand for these two goods * =? and y =? If the price of first good P has increased from 15 to 60. To keep her utility fixed how much does she need to spend for these two goods at least. In other words what should be her minimum income.If Utility Function is U = 5x1/2x2 with x1 and x2 goods and p1 = $10 and p2 = $15, so if income is $20,000: a) Calculate x1 and x2 to maximice consumer utility and what is consume utility. Graphic your results b) If income rises to $25,000 so what are new values for x1, x2 and utility? Graphics yourr resultsJerry spends his entire budget on bread and gasoline. His preferences are complete, transitive, monotonic, and convex. For Jerry, bread is an inferior good that follows the law of demand. Moreover, his cross-price elasticity of demand for gasoline with respect to the price of bread is negative. Suppose the price of bread increases, all else constant. a. Create a chart to show the total, income, and substitution effects on bread and gasoline of the increase in the price of bread. b. Use budget lines and indifference curves to graphically illustrate the three effects. Be sure to label each effect on your graph (or through the chart from part a) and plot bread on the x-axis and gasoline on the y-axis
