What condition should be met in order for the consumer to maximize satisfaction in the consumption of good X and good Y? Provide the calculation that satisfies the equilibrium condition.
Q: Last week, Wally's Burgers, Inc. reduced the average price on the 1/2-pound Papa burger by 1%. In re...
A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in pric...
Q: 1. As we saw in problem set 2, the Bureau of Labor Statistics reported that the United States labor ...
A: Given that, labour force of Country US =162294000 2.0% labour force engaged in R&D=2100×16229400...
Q: A(n). is a way that individual firms are interconnected O microeconomy O industry O market structure...
A: In economics, firm refers to any company which seeks make profit by producing or selling various goo...
Q: explain how google has the characteristics of a monoply market structure
A: A structure of the market being depicted by high entry barriers, single sellers, being a price maker...
Q: The law of diminishing marginal utility A) refers to the fall in additional satisfaction creat...
A: Marginal Utility refers to the additional satisfaction derived by the consumption of one more unit o...
Q: Fruitland has a very simple economy: it produces just apples and oranges. It has no imports and expo...
A: Inflation is the rise in general price level over period of time . And nominal GDP is the product of...
Q: What comparisons and contrasts can you make with immigration today from this article ? http://histor...
A: Immigration refers to the movement of people from their home country to another country of the world...
Q: Assume you can work as many hours you wish at £12 per hour (net of tax). If you do not work, you hav...
A: Answer-
Q: Which of the following is a correct statement about the relationship between average cost (AC) and m...
A: The relationship between MC and AC can be stated as under: (i) When AC falls with increase in output...
Q: Below is the production possibility schedule for an economy. Max. Annual output Quantity of fish (po...
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...
Q: Which of the following statements is false? A major determinant in the long run of the volume ...
A: A yield curve is a graph that compares the yields (interest rates) of bonds with similar credit grad...
Q: You have just won the lottery. The state offers you an amortized payout of $200,000 at the end of ea...
A: A lump sum is defined as a single large sum of money. In contrast to a series of payments made over ...
Q: raw material costs rise the average revenue curve will: A) remain in the same place. B) shift to the...
A: Price has an indirect relationship with quantity demanded.
Q: Čalculate the missing values in the table below by using the provided data collected in the househol...
A: Here we calculate the following missing terms by using the given information and fill the blanks , s...
Q: or has just finished a cup of coffee. He is sitting in his bus on his scheduled lunch break. He thro...
A: Answer - "Thank you for submitting the questions But, we are authorized to solve one question at a t...
Q: The market for peanut butter in Winnipeg has the following supply and demand curves: Demand: P = 30 ...
A: A demand curve shows the connection between amount demanded and cost in a given market on a diagram....
Q: The price elasticity of supply is a measure of the: Responsiveness of buyers of a good to change...
A: Price elasticity of supply indicates the relationship between price and quantity supplied.
Q: At what interest rate if compounded quarterly would P5,000 accumulate to P8,000 in six years?
A: Given information, Present value (P): P5,000 Future value (F): P8,000 Time period (n): 6 years Comp...
Q: Determine if the following statement is normative or positive: Households that participate in SNAP p...
A: SNAP: SNAP advances long haul wellbeing and prosperity, particularly for kids. Research shows that S...
Q: discuss in detail the nature of production, profit and costs within the public sector
A: The influence of government revenue, expenditure, and investment decisions is studied in public sect...
Q: Paul loves hot drinks, and he has a part of his weekly budget earmarked for buying them. In the dia...
A: Indifference Curve:- An indifference curve is a graphical representation that depicts the bundle of ...
Q: Exhibit 2 Price Supply P2 P1 Q1 Q2 Quantity Use Exhibit 2. Which of the following statements is (are...
A: Producer surplus is the area above the supply curve and below the price line.
Q: Real GDP Consumption Planned investment Planned aggregate Unplanned inventory (in billions) (in bill...
A: * SOLUTION :- Given that,
Q: Let's assume you’ve found the following labor demand and supply curves: Lp = 30 – w Ls 2w (a) Solve ...
A: Given Labor demand LD=30-w ... (1) Labor supply LS=2w ...
Q: 4. A firm has the following production function: Q = 50L + 6L² – 0.5L3 %3D (a) production function. ...
A: Answer - "Thank you for submiting the questions.But, we are authorized to solve first sub parts only...
Q: Explain which of the following must have happened between those weeks for Paul’s optimal bundle to m...
A: The consumption bundle is the best consumption bundle. Given a budget constraint, a bundle that opti...
Q: Question 8 Brendan K. decides to spend two hours playing basketball rather than attending his classé...
A: Quantity of labour can be influenced by two factors which are number of workers and other factor is ...
Q: Which of the following data is cheapest to collect A. Canadian Census data on unemployment B. None o...
A: Wheb talking about collection of data, there are different sources to gather information for a speci...
Q: A firm produces identical outputs at two different plants. If the marginal cost at the first plant e...
A: The firm seeks to maximize the profit. The profit is maximized where the MR=MC. Firm can use its mul...
Q: In the rural area of a large agricultural-based economy in which corn is the staple food, there are ...
A: Answer-
Q: Decide if it is an increase (right shift) or a decrease (left shift) and write that next to the ques...
A: The supply curve of pecans shows the direct relationship between the price of pecans and the quantit...
Q: 1) What's the opportunity cost of a typical college education? What's your personal opportunity cost...
A: "Since you have posted a question with multiple sub-parts,we will solve first three sub-parts for ...
Q: Expectations about price changes will affect:A) the demand curve only. B) both the demand and supply...
A: The expectation in economics states that the forecast of the decision-makers about prices, income, t...
Q: 2. In an effort to encourage economic growth, the United States government has cut corporate income ...
A: Law of Supply: There exists direct relationship between price and quantity supplied keeping other fa...
Q: 3) What problem could arise with consumers' net demand functions as any price becomes zero? What axi...
A: Suppose in an endowment economy price of one good hits zero. The problem could be that the consumer ...
Q: Disposable income ________ when ________. a. decreases; taxes increase b. decreases; transfer payme...
A: DISPOSABLE INCOME IS A NET INCOME , IT IS THE AMOUNT LEFT OVER AFTER TAX. IT IS ALSO KNOWNS AS DISPO...
Q: Question Under what conditions would a transfer of income from the richest 10% of the population to ...
A:
Q: Differentiate exploratory research and specific research in your own words
A: Economists gave their findings and theories based on a research that they make using specfiic inform...
Q: Question 22 Figure 5: Demand for turkey in the United States price DB quantity Refer to figure 5. Al...
A: Fertilizers can increase the fertility of land and hence quality of agricultural production can be i...
Q: Suppose that you are starting up a lawn-raking business. All of your workers are required to supply ...
A: Answer -
Q: An increase in ________ decreases the quantity of money people want to hold. a. the price level b. ...
A: According to quantity theory of money, quantity of money is directly related to level of price and i...
Q: Use the timeline to calculate the value of the annuities i=7%. 6 5 4 3 (1) - (3) 3 4 lo (1) .value a...
A:
Q: hich of the following is occurring in the market when an excess quantity of a good is supplied at th...
A: Equilibrium is achieved at the output level where Qs equals Qd.
Q: What is the IRR in the following cash flow? Year End 3 4 Cash Flow 1,800 -6,000 1,800 1,800 1,800 1,...
A: Here we calculate the value of IRR of the given cash flow by using the given information and choose ...
Q: The price elasticity of demand measures which of the following? A) how responsive the quantity deman...
A: Enterprise is carried out by entrepreneur and therefore enterprise would be occupationally mobile if...
Q: If there is a fall in the price of a close substitute for potato crisps, such as tortilla chips, thi...
A: Market demand for a commodity can change as a result of a change in consumers income, their tastes a...
Q: Agriculture Group of answer choices wasn't important for the advancement of society developed ...
A: Agriculture is the soul earning of the rural people specially in India.
Q: A new engine was installed by a textile plant at a cost of P300,000 and projected to have a useful l...
A: Given: Initial Cost=P 300000 Life=15 years End of life cost=P 1000 Annual cost of pavement=5%
Q: Which of the following is NOT part of the opportunity cost of attending university? A) The alt...
A: Opportunity cost is defined as the benefit an individual or business misses while choosing some othe...
Q: Differentiate between enumerated and implied powers. Provide examples. Provide examples of powers ex...
A: The federal government of the United States divides power between the national and state governments...
Step by step
Solved in 2 steps
- 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?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 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.
- John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of 25 utils. After three Cokes, he has a total utility of 50 utils. Does John show diminishing marginal utility for Coke, or does he show increasing marginal utility for Coke? Supposethat John has $3 in his pocket. If Cokes cost $1 each and John is willing to spend one of his dollars on purchasing a first can of Coke, would he spend his second dollar on a Coke, too? What about the third dollar? If John’s marginal utility for Coke keeps on increasing no matter how many Cokes he drinks, would it be fair to say that he is addicted to Coke?Carol needs to decide how to spend her wealth on sh and chicken.For Carol, 1 lb of sh is equivalent to 2 lb of chicken. Her preferencecan be represented by the utility functionu(x; y) = 2x + ywhere x is the quantity of sh (in lbs) and y is the quantity of chicken(in lbs). The consumption set is R2+. (a) Draw two typical indi erence curves for Carol, one correspondingto a utility level of u1 and one corresponding to a utility level u2,where 0 < u1 < u2. Make sure you label the slope of the indif-ference curves and the intercepts with the horizontal and verticalaxes.(b) Suppose the price of sh is $1:5 per lb and and the price of chickenis $1 per lb. Carol has $20 to spend on sh and chicken.(i) Draw Carol's budget set, labeling the slope and the interceptpoints clearly.(ii) How much sh and chicken will Carol choose to purchase? I am looking for an answer to the points (c) and (d) below (c) Suppose now that the price of sh increases to $2 per pound.(i) Draw Carol's budget set,…todd is a cattle rancher in june and july he spent his clothing budget on jeans and cowboy hats. each pair of jeans cost $56 and each hat cost $41. At Todd's optimal choice, his marginal utility from the last pair of jeans purchased is 592. This means that his marginal utility from the last cowboy hat purchased is: Round the final answer to the whole number
- Why is the consumer’s MRS equal to the price ratio at the optimal consumption point? Givea graphical interpretation of this fact in XY space (hint: what do we know about the indifferencecurves and the budget line?).Vani eats only green eggs and ham. He has an income of $36. Green eggs have a price of Priceof Green eggs = $2 and ham has a price of Price of Ham = $6. Sam’s preferences are represented bythe utility functionUtility = 10Eggs + 40Hama) Draw vani's budget constraintJoe is currently in consumer equilibrium by consuming cheese and crackers, such that the last cracker consumed yielded 8 utils and the last piece of cheese consumed yielded 12 utils. Assume the price of crackers is two cents per cracker and the price of cheese is three cents per piece. If the price of crackers increases to four cents, Joe should his consumption of crackers and his marginal utility from crackers will and also his consumption of cheese and his marginal utility from cheese will (Assume he is in the downward sloping portion of the MU curve.) Ο Ο Ο decrease; increase; increase; decrease increase; increase; increase; increase increase; decrease; increase; decrease increase; increase; decrease; decrease
- Mylie’s total utility from singing the same song over and over is 50 utils after one repetition, 90 utils after two repetitions, 120 utils after three repetitions, 80 utils after four repetitions, 20 utils after five repetitions, and -60 utils after six repetitions, as shown in the table below. a. Write down her marginal utility for each repetition. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Repetitions Total Utility Marginal Utility 0 0 — 1 50 2 90 3 120 4 80 5 20 6 -60Suppose that the following utility function is given U(X,Y) = -X-ywhich of the following is correct? X is a good and Y is a bad and indifference curve is negatively sloped. Both X and Y are goods and indifference curve is negatively sloped. Both X and Y are bads and indifference curve is negatively sloped, OYisa good and X is a bad and indifference.curve is positively sloped.Refer to the indifference curve/budget line diagram below in Figure 7. Given that a consumer initially faces budget line (BL1) and ICI, and thus, by choosing consumption point c, is able to achieve the optimal utility level. If the price of x (Px) decreases, then the substitution effect (SE) is the movement from _-. effect (IE) is the movement from and the income y a IC2 d IC: BLI Figure 7 O a. from b to a; and a to d. O b. from a to b; and b to c. O c. No correct answwers. O d. from c to d; and d to a.
