2) Is the marginal utility of money income uniquely defined? 3) Examine the responses of an electricity consumer to changes in the connection charge and prices of electricity.
Q: If the price of beef increases by 20% the quantity demanded of beef decreases by 80%. The price…
A: The percentage change in price of beef =20 Percentage change in quantity demanded of beef =-80 The…
Q: costs LA TC TR 0 web page designs Refer to the diagram above. In this instance, at the range of…
A: Total revenue (TR) is the total earnings that a firm receives from selling its goods or services,…
Q: If all monopolistically competitive firms in the industry have profit circumstances similar to the…
A: A monopolistically competitive firm produces at the intersection of MR and MC curves. Hence, the…
Q: Suppose two bidders compete for a single indivisible item (e.g., a used car, a piece of art, etc.).…
A: Nash Equilibrium is a concept in game theory that describes a state in which each player in a game…
Q: A critical machine in BHP Billiton's copper refining operation was purchased 7 years ago for…
A: To compare the alternatives we will find the annual worth of expenses with making use of the…
Q: Let x be a random variable representing dividend yield of Australian bank stocks. We may assume that…
A: The sample mean of bond Yield=6.83% Population mean of bond Yield=6.9% Standard deviation=2.4%…
Q: Bob's farm harvests corns worth 89 dollars (and nothing else). In each year, there is a 30% chance…
A: In economics, utility refers to the satisfaction or pleasure that consumers derive from consuming…
Q: State and explain the role that the Bretton Wood institutions played in determining world trade…
A: Regional integration is the process through which countries join forces to form regional groups or…
Q: You are the manager of a firm that sells its product in a competitive market at a price of 200. Your…
A: In perfect competition, The firm will produce where the price is equal to the marginal cost.…
Q: ch serving a miles of concrete highway." Source:…
A:
Q: Graphically illustrate how each of the following events, ceteris paribus, will affect the market for…
A: Let the initial demand and supply curve of coffee is represented by D1 and S1. The equilibrium point…
Q: Maryland farmers turn from tobacco to flowers Maryland tobacco farmers will be subsidized if they…
A: A subsidy is a financial assistance provided via the government to people, businesses, or industries…
Q: A machine costing $24,000 to buy and $3,500 per year to operate will save mainly labor expenses in…
A: Annual cash flow is the total amount of money that flows in and out of a business or individual's…
Q: A16)Which did not happen in the wake of the Great Depression? A)creation of the FDIC B)Regulation…
A: The Great Depression was a severe economic downturn that lasted for about a decade, from 1929 to the…
Q: Calculate the Demand deposit if the CRR is 17.5% and the cash reserve is 1900.
A: Reserve are the part of deposit that is kept by the banks as per the rules of central bank. The…
Q: An analyst working for your firm provided an estimated log-linear demand function based on the…
A: The given regression model is a log-linear regression model in which the dependent and independent…
Q: Assume the economy is operating beyond the full-employment output level, as shown in the graph…
A: Aggregate demand is the sum of Consumption, Investment, government spending and net export. Fiscal…
Q: Suppose that the industry demand curve is given by the following quantity demanded = 100 – 0.5…
A: Marginal revenue is important in determining the profit-maximizing level of output for a firm, as it…
Q: Answer the given question with a proper explanation and step-by-step solution. Woodles and Doodles…
A: Cross price elasticity of demand measures the responsiveness in quantity demanded of a commodity to…
Q: explain whether there has been a market failure, what type of failure, and what measures might solve…
A: A market failure occurs when the market fails at optimally allocating the resources for the best…
Q: Use the table of tax rates below to answer questions 3 through 7. Income range Tax rate $15,000 and…
A: Tax revenue is the product of tax per unit and quantity of good sold. Income tax is the tax that is…
Q: Economics: Industrial Economics Question: In a market operating under quantity competition there…
A: Given: C1(q1) = 675 + 60q1 + (q1)^2 (cost of firm 1) C2(q2) = 375 + 20 q2 + 5 (q2)^2 (cost of firm…
Q: Potential arguments and counter arguments in favour of Surescripts’ use of vertical restraints.…
A: Company S is a corporation in Country U that provides electronic prescribing services to healthcare…
Q: Suppose we have a duopoly of a homogeneous product with demand Q = 10 – P/2. The cost function of…
A: To find the Cournot equilibrium, we need to determine the best response of each firm to the other's…
Q: pls send me answer of all the parts in details and i will rate you.
A: GDP stands for Gross Domestic Product. It is a measure of the total economic output of a country,…
Q: You want to be able to withdraw $50,000 each year for 15 years. Your account earns 5% interest. a)…
A: The amount of money necessary to pay upfront and ongoing fees in order to afford a loan or…
Q: What is the most salient feature of Canada's employment insurance system that sets it apart from its…
A: Employment insurance (EI) is a social insurance program in Canada that gives temporary monetary…
Q: this answer to the question is too much widely spread, kindly provide me with a different answer to…
A: In economics, inflation refers to the rate at which the general price level of goods and services in…
Q: 3. The components of marginal revenue Jabari's HookNLadder is the only company selling fire engines…
A: The production decision of an enterprise entails deciding the ideal quantity of goods or services to…
Q: Suppose that company A has an asset worth £10 million yielding an interest of 7%. Suppose that A is…
A: A currency swap is a financial derivative device wherein parties comply with exchange cash flows in…
Q: Shouldn't our Q(x) = 60000-4000x ?
A: YES, I have solved in the right way below. Sorry for the calculation mistakes. GIVEN: When…
Q: Draw indifference curves that reflect the following preferences. a. Tea and coffee b. Pizza and…
A: An indifference curve is a graphical representation that shows various combinations of two goods…
Q: Shell has over 13,000 gas stations in the United States. In addition to gasoline, the gas stations…
A: First-degree price discrimination, often referred to as perfect price discrimination, is a pricing…
Q: Mays and McCovey are beer-brewing companies that operate in a duopoly (two-firm oligopoly). The…
A: Oligopoly is a form of market where there is only a limited number of firms or suppliers who have a…
Q: Compute the following, all using an interest rate of 8%: (a) Use the variable S for the equivalent…
A: For uniform gradient series, the equivalent uniform value is calculated using the factor (A/G,i,n),…
Q: Read “YOU’RE THE ECONOMIST: Did the Fed Cause the Great Recession?” in Chapter 26. In support of the…
A: The monetarist economist believes that money supply is the main factor in determining…
Q: Explain how Macroeconomics course helps you better demonstrate the value of studying Microeconomics…
A: Microeconomics deals with the individual agents if the economy. It includes the consumer demand,…
Q: worker will change in which of the following ways? Capital per Worker Output per worker (A)…
A: Investment refers to the process of putting money or resources into an asset or project with the…
Q: Suppose Farmer Smith grows apples. The enitre market for apples is shown in the figure below. Assume…
A: Perfect Competition is a type of market structure where there are a large number of buyers and…
Q: There are actually many economic / environmental theories, some now put into practice, that protect…
A: Environmental economics is a branch of economics that studies the economic impacts of environmental…
Q: You are the manager of a firm that sells its product in a competitive market with market (inverse)…
A: Marginal revenue (MR) refers to the additional revenue generated from selling one additional unit of…
Q: 2. Determining long-term exchange rates Consider two countries, the United States and Japan, that…
A: Productivity refers to the rate at which an economic entity or nation converts its available…
Q: There is a project for which player 1 can exert effort e 20 that costs her c(e) = 0.5e2. If player 1…
A: To find the subgame perfect equilibrium effort choice, we need to work backwards from stage III. In…
Q: The following graph shows the same domestic supply and demand curves for limes in South Africa. Now,…
A: The equilibrium price and equilibrium quantity of a good sold in the market are determined by the…
Q: The specificity of the asset (or investment) leads to the possibility of Multiple Choice zero sunk…
A: An asset is a resource that has an economical cost and may be owned, controlled, or utilized to…
Q: What are the three primary factors that determine the magnitude of the wage elasticity of demand for…
A: Economics refers to the study of the scarcity of resources and its implications for the use of…
Q: The following table shows the daily cost data and demand schedule for a typical firm producing board…
A: A monopolistic competitive market is a type of market in which there is only one seller and many…
Q: Explain what a third-degree price discrimination policy consists of and what its purpose is. From…
A: Price discrimination is a pricing strategy where a company charges different prices for the same…
Q: explain whether there has been a market failure, what type of failure, and what measures might solve…
A: Market failure arises when a free market struggles to distribute resources efficiently, resulting in…
Q: Consider the Phillips curve shown here. In region B: a. inflation equals expected inflation.…
A: The Phillips curve is a graphical representation of the inverse relationship between unemployment…
2) Is the
3) Examine the responses of an electricity consumer to changes in the connection charge and prices of electricity.
Step by step
Solved in 3 steps
- Utility functions of a consumer: U = 20x10.4x20.4 Specify:a. marginal utility of each item.b. If the consumption of x1seee is 80 and x2 as much as 60 units, the price of Px120 and Px2 25, Determine if there is a balance of consumption?Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. Units of J MUj Units of K MUk 1 56 1 32 2 48 2 28 3 32 3 24 4 24 4 20 5 20 5 12 6 16 6 10 7 12 7 8 What level of total utility is realized from the equilibrium combination of J and K, if the consumer has a money income of $28 and the prices of J and K are $8 and $4, respectively? Multiple Choice a. 172 utils b. 168 utils c. 188 utils d. 72 utils Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Based on several observations, people at older ages tend to buy more luxurious products than when they were younger. Does this mean that diminishing marginal utility of money declines as people age?
- Student question Time Left : 00:09:39 5) Quasimodo consumes earplugs and other things. His utility function for earplugs x and money to spend on other goods y is given by ux,y=100x-x22+y What kind of utility function does Quasimodo have? What is his inverse demand curve for earplugs? (Implicitly, the price of money left over for other goods is 1) If the price of earplugs is $50, how many earplugs will he consume? If the price of earplugs is $80, how many earplugs will he consume? Suppose that Quasimodo has $4,000 in total to spend a month. What is his total utility for earplugs and money to spend on other things if the price of earplugs is $50? What is his total utility for earplugs and other things if the price of earplugs is $80? How much does the utility decrease when the price changes from $50 to $80?Irene spends all of her income M on soda and chips. The price of soda is 2 per unit. Irene’s utility function is U (s, c) = 5 ln(1 + s) + ln(1 + c). (a) Derive Irene’s demand function for chips (as a function of her income and the price of chips).With the concept of Total Utility and Marginal Utility, explain why gold is more expensive than rice.
- Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. Units of J MUj Units of K MUk 1 56 1 32 2 48 2 28 3 32 3 24 4 24 4 20 5 20 5 12 6 16 6 10 7 12 7 8 If the consumer has money income of $52 and the prices of J and K are $8 and $4 respectively, the consumer will maximize her utility by purchasing Multiple Choice 3 units of J and 7 units of K. 5 units of J and 5 units of K. 4 units of J and 5 units of K. 6 units of J and 3 units of K.Can you assist me with this? Troy has preferences for laptops (L), and drones (D). Laptops costs $750 a unit and drones costs $2000 a unit. Troy has $15000 to spend on both goods. Troy is a utility maximizer. Describe the utility maximization condition. Using the available information at what value is utility expected to be maximizedA fitness company offers online classes (x) for $10 per class. The typical customer has monthly utility from online fitness classes(x) and money spent on other things (m) U(x,m) = m + 40x^0.5 and a monthly budget of $200. a) Compute the expression of the Marginal Rate of Substitution of money for on-line classes. Does it depend on how much money the consumer spends on other things? Does the typical customer consider on-line classes an imperfect substitute to spending money on other things? b) Find the weekly optimal bundle of the typical customer. Keep in mind that the unit price of money spent on otherthings is $1. c) What is the typical customer’s level of utility at the optimal bundle?
- 1. What is the relationship between pS/pC and pC /pB? What feature of the utility function is responsible for these ratios?2. Now suppose that the moment before the above prices are elicited, the subject gets $10, which does not become part of her reference point. Again calculate the three prices pS, pB, and pC. What is the relationship between pS/pC and pC /pB? Why? 3. In some actual experiments, subjects were not given money, and pS/PC was found to be about 2, and PC/pB was found to be about 1. Write down a utility function that can produce these ratios.I need help with this homeowrk question i am unsure if i have it correct. Suppose a consumer’s utility function is given by U(X,Y) = X^1/2*Y^1/2. Also, the consumer has $36 to spend, and the price of good X is P(x) = $4. Let good Y be a “composite” good (good Y is the “numeraire”) whose price is P(y) = $1. So, on the Y-axis, we are graphing the amount of money that the consumer has available to spend on all other goods for any given value of X.if P(x) increases to 9 and the new bundle of the customers demands are 2 units of x and 18 units of y, how much additional money would the consumer need in order to have the same utility level after the price change as before the price change? (Note: this amount of additional money is called the Compensating Variation.) and of the total change in the quantity demanded of good X, how much is due to the substitution effect and how much is due to the income effect? (Note: since there is an increase in the price of good X, these values will be…If Utility function is of form U = 12x1 + 10x2 + log(x2), with prices of goods of the form p1= 5 and p2= 10. If monetary Income is 500, we ask:(a) Determine optimal quantities for x1 and x2 and establish utility obtained by consumer.b) If Monetary Income falls to 450, then how do you change quantities of x1 and x2 that maximizes consumer's utility?