22. If the cost of buying 10 units of good 1 is less than 1/2w, a consumer buys 10 units of good 1 and spends her remaining wealth on good 2. Otherwise she spends half of her wealth on each good. The utility function is
Q: Use the table to answer the question. Number of Workers 10 O b O c d 20 30 Output (thousands) $0.43…
A: Number of workers Output Fixed Cost Variable cost 10 3 2000 100 20 5 2000 200 30 6 2000 300
Q: (Pre-pandemic), Qantas identified that its business traveller customers have a less elastic demand…
A: The elasticity of demand: Elastic demand is demand in which the quantity demanded varies greatly…
Q: Answer the following questions based on the accompanying diagram: Price ($) 20 18 16 14 12 10 00 a 4…
A: Elasticity measures the responsiveness of quantity demanded with respect to change in quantity…
Q: QUESTION 7 The output gap is increasing over time because actual GDP is greater than potential GDP…
A: The output gap is an economic proportion of the distinction between the actual result of an economy…
Q: Why does businesses need to produce safely, on time, to cost; to quality within the law?
A: Production The inputs required to produce a thing or service are known as factors of production,…
Q: Consider the following cash flow: A1=−900 A2=−1,100, A3=−1,300 A4=−1,500.…
A: Given the cash flow schedule Period Cash flow 0 1 -900 2 -1100 3 -1300 4 -1500…
Q: If the inflation rate is 4.95% compounded annually, how long will it take for prices to double?…
A: The following is the formula to calculate the amount if the principal is compounded at r percent…
Q: Having an outdoor arena that will host country music concerts a half-mile from your neighborhood…
A: The benefit or cost that is imposed on a third party is not incorporated into the final cost is…
Q: →→ Calculate the sope of the tal Vod - je ods Vad 2 O Point of 1 Two of a Told cont
A: Total cost curve is upward sloping which means it is positively sloped. This is because as output…
Q: With the news that the construction industry is on the rise again in the U.S., the major car…
A: The answer to the question is as follows:
Q: What are the proposal's potential positive and negative externalities?
A: A cost or benefit incurred or received by a producer that is not incurred or received financially by…
Q: The unemployment rate that is typically reported in the media is O computed every three months O…
A: In economics the rate of unemployment rate refers to the percentage of the total labor force that is…
Q: 1. High concentrations of sulfur emitted by coal fired electricity plants are toxic for humans. They…
A: Note:- Dear learner you have posted a questions with multiple sub parts, here we have solved only…
Q: The nation of Potchatoonie produces hockey pucks, cases of root beer, and sandals. The following…
A: Introduction Here Potchatoonie produces hockey pucks, cases of root beer, and sandals. Here we have…
Q: K (Net present value calculation) Big Steve's, makers of swizzle sticks, is considering the purchase…
A: Net present value of any project is the sum of all the present value of its cash flows and…
Q: Suppose the optimal demand for two goods 1 and 2 is characterized by the relation x1= 2*x2, no…
A: We are given the relation between 2 goods at the optimal condition as X1 = 2 X2
Q: What is the division of labor according to the economists?
A: Division of labor can be defined as an approach of separation of process of production into a…
Q: 10. Price elasticity of supply in the short run and long run The following graph shows the short-run…
A: Price elasticity is quite possibly of the most key, fundamental economic idea any business owner or…
Q: Question Z Draw a production possibility frontier. The vertical axis shows the production of public…
A:
Q: With the news that the construction industry is on the rise again in the U.S., the major car…
A: The supply of pick-up trucks increased due to major car manufacturers increasing the production of…
Q: It takes one hour to travel from Manila to Laoag by air, but it takes 10 hours by bus. Airfare costs…
A: Opportunity cost is the cost in terms of other goods for eg: here time. We can go either by bus or…
Q: While on a trip to Baja California, Mexico, in January 1994, Mary bought a house worth $160,000…
A: A exchange rate is the rate at which one money will be traded for another cash. Exchange rate are…
Q: how does an increase in population effect a countries GNI?
A: GDP stands for the finished products and services generated in an economy during a specific time…
Q: By Walter E. Williams socialism to free market capitalism. summary
A: Summary By Walter E. Williams socialism to free market capitalism. The following is the definition…
Q: Whould you please correct the below Economic understanding: When ATC is decreasing MC means…
A: (a) When ATC is decreasing, MC < ATC, which means that the company is making a profit because…
Q: A(n) variable is calculated from within the model. A(n) _ endogenous; endogenous O endogenous;…
A: The endogenous variable is the dependent variable while exogenous variables are independent…
Q: Describe the business environment in the city or country that you live in. You should explain…
A: Private and public sector businesses coexist in India's commercial environment, where the average…
Q: A consumer of two goods has indirect utility v(p, w) P₁ + P₂ (a) Find the indirect money-metric…
A: In the study of economics, the term utility can be defined as the total satisfaction or benefit that…
Q: The price of peanut butter, a complement to jelly, decreases. How will this affect the equi price…
A: Demand shows inverse relationship between price and quantity demanded. It slopes downward. Supply…
Q: Explain the difference between financial institutions and financial markets, please give examples.
A: Economic system significantly depends on financial assets and transactions, therefore financial…
Q: 4. Find the total differential of z = (5x³-12xy-6x5)
A: The total differential of a function with two or more independent variables is equal to the sum of…
Q: Suppose that a. The unemployment rate is %. (Enter your response rounded to two decimal places) b.…
A: Adult Population = 237million Employment Adult = 84 million Unemployment Adult = 12 million
Q: A consumer of two goods has indirect utility v(p, w) = -1/2 P₁ + P₂ (a) Find the indirect…
A: In the study of economics, the term utility can be defined as the total satisfaction or benefit that…
Q: KYC Policy Know your Customer What is the registration process to be tether customer?
A: Know Your Customer (abbreviated as KYC) refers to an approach of gathering information related to…
Q: Refer to the table below. Type of Production Production Alternatives A B C D E Automobiles 0 2 4…
A: Production possibility curve shows the combination of production of two different goods with the…
Q: In 2018, Janice Quinn sells a five-year-old car to Used Car, Inc. for $4,000. In the same year,…
A: GDP is the value of goods and services which are produced during an accounting year. The resale of…
Q: a. What is the sample range? b. If you would like to construct a frequency distribution table with 6…
A: Sample range = maximum value - minimum value = 13.5 - 5.2 = 8.3
Q: There is an increase in demand of 100 units at each price and a decrease in supply of 100 units at…
A: Solution: The equilibrium occurs at an intersection of demand and supply i.e. a price $400 and…
Q: Why is the interest 2% instead of 8%
A: Making decisions based on the present value of cash flows is a very practical strategy. When…
Q: Luther’s company has just received an order for 1,200 of its Flying Z machines. The customer wants…
A: * ANSWER :- Given that , The company receives an order of flying z mechine= 1200 The customer…
Q: uppose a low-income family that earns K750 per month consumes 8 Kgs of Hamburgers and 2 Kgs of Beef…
A: Income elasticity of demand measures the change in quantity of good due to change in the income of…
Q: Which economic model reveals the variety of options for what to do with your scarce time? Supply…
A: We will answer this question by considering the definition of various answer options
Q: Refer to Table 6.3 below, use the expenditure approach to calculate gross domestic product from the…
A: The expenditure approach is a technique for computing a country's total national output (Gross…
Q: Vince loaned a certain amount from a cooperative and promised to pay it back with 2.33 times his…
A: Loan Amount = A Maturity Amount = 2.33A r = 10.42%
Q: Which of the following is NOT included in 2004's GDP? Group of answer choices The profit earned…
A: When talking about the calculation of gross domestic product to determine the national income, it…
Q: Suppose a farmer is using fertilizer (X) to produce two products: cotton (Y₁) and maize (Y2). The…
A: Introduction Here a farmer is using fertilizer ( X) to produce two products: cotton ( Y1) and maize…
Q: Learnin The majority of fresh fruit consumed in the United States is now imported, much of it coming…
A: Given the world price line is at P=$4 The US imports fruits from Mexico, Chile, Guatemala, and…
Q: Given the monthly payment as shown with interest as 1 % per month. Month 1 100 2 110…
A: From Payment for the months 2,3 it is clear that interest rate is 10% per month, not 1%(there might…
Q: For each of the following situations, i) Find the Marginal Rate of Substitution at the given bundle,…
A: As given the U(x, y) = 2X +3Y, Marginal rate of substitution is the slope of indifference curve also…
Step by step
Solved in 2 steps
- 1.a Assume that a person’s utility function is given by the following function: ??=3?^(2/3)?^(1/3) Assume also that the price of X is £3, and the price of Y is £3 and that the budget is £45. What is the optimal amount of goods X and Y that should be purchased with this budget? b) Assume now that the price of good X is PD, while all other conditions remain the same. Find the optimal amount of good X that should be purchased for a generic price PD. In other words, find the individual demand function for good X. 1.b Assume now that the price of good X is PD, while all other conditions remain the same. Find the optimal amount of good X that should be purchased for a generic price PD. In other words, find the individual demand function for good X.Suppose a consumer’s utility function is given by U(X,Y) = X1/2*Y1/2. Also, the consumer has $72 to spend, the price of Good X, PX = $1, and the price of Good Y, PY = $1. a)How much X and Y should the consumer purchase in order to maximize her utility? b)How much total utility does the consumer receive? c) Now suppose PX increases to $9. What is the new bundle of X and Y that the consumer will demand?Assume an individual's utility from consuming good #1 and good #2 is given by the following function: U (q1 , q2) = min (q1 , 2q2) Suppose the price of good #1 is $1 (p1=1) and the individual's income is $10 (y=10). If this individual's utility maximizing decision is to purchase 2 units of good #2 (q2=2), what must be the price of good #2?
- 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…A consumer prefers to consume 1 unit of x with each unit of y. if the price of x is $12 and the price of y is $4 , and he has income of $120, what is the optimal pair (x*,y*) to consume? a. (12,12) b. (20,20) c. (22,22) d. (40,40)Bob has a utility function U(x, y) = √x1 + 0.8√x2 + 0.64√x3 over his incomes x1, x2, x3 in the next three years. This function is an example of (A) expected utility; (B) quasi-hyperbolic utility function; (C) discounted utility; (D) none of the above. . Which of the following preferences agree with Bob’s utility? (A) (9, 10, 11) ≻ (9, 10, 12); (B) (9, 10, 11) ≻ (11, 10, 9);(C) (9, 10, 11) ≻ (9, 11, 10); (D) none of the above. Bob’s utility function implies (A) time stationarity; (B) transitivity; (C) impatience; (D) all of the above.
- A consumer has a perfect complements utility function, where she prefers to have one unit of H with each unit of G. Also, she has an income of $210. Assume that the price of H is $8 and the price of G is $6. What is the consumer's optimal choice for good G*? Group of answer choices 11 12 15 16Harmon's utility function is U(x1, x2) = x1x2. His income is $80. The price of good 2 is p2 = 4. Good 1 is priced as follows: the first 15 units cost $4 per unit and any additional units cost $2 per unit. What consumption bundle does Harmon choose? a) (12.5, 12.5). b) (25, 12.5). c) (12.5, 25). d) (15, 10). e) none of the above.2. Tom spends all his $100 weekly income on two goods, apples and bananas. His utility function is given by U (A, B) = AB, where A and B stand for the quantity of apples and bananas consumed by Tom. If PA = $4 and PB= $10, how many apples and bananas will he consume? Make sure you write out the utility maximization problem explicitly, including the decision variable(s). What if his utility function is given by U (A, B) = A0.5B 0.5?
- Suppose a consumer’s preferences can be represented by the utility function U(X,Y) = Min (2X,Y). Also, suppose the consumer has $300 to spend and the price of Good X is PX = $2 and the price of Good Y is PY = $5. If the consumer maximizes their utility subject to their budget constraint, how much of Good X and how much of Good Y will the consumer purchase? X* = Y* =.Assume the prices of product X and Y are $1.50 and $1.00, respectively, and that Mr. Chen has $24 to spend. Assume a normal indifference curve. Assume that Mr. Chen needs 4 of product X to maximize utility. 1. What is the slope of Mr. Chen’s budget constraint. 2. Write out Mr.Chen’s equation to his budget constraint. 3. What combination of X and Y will Mr. Chen purchase? 4. Now assume that the price of Y changed from $1.00 to $2.00, redo part a, b and c, 5. Draw the budget constraint graph and indifference curve before the change and after the change in the price of Y. Explain the substitution and income effect for this change. 6. Now assume instead of a price change, Mr. Chen’s budget changed from $24 to $30, and the prices are still $1.50 and $1.00 for product X and Y respectively. Redo parts a, b, c and draw the before and after change on the budget constraint and indifference curve. Questions 1-3 Have Been Answered Please 4-6.There two goods, candy and soda, available in arbitrary non-negative quantities (so the consumption set is R2+). A consumer has preferences over consumption bundles that are represented by the following utility function:u(x, y) = −|4 − x| − |4 − y|where x is the quantity of candy (in grams), y is the quantity of soda (inliters), and |.| denotes the absolute value: for any real number r ∈ R, |r| = r if r ≥ 0 −r if r < 0. The consumer has wealth of w > 0 Dirhams. The price of candy is p > 0 Dirhams/gram, and the price of soda is q > 0 Dirhams/liter. (a) Find the demand for candy and soda as a function of wealth w > 0for the following specific prices, explaining how you arrived at youranswers:(i) when p = 1 and q = 2,(ii) when p = 2 and q = 1,(iii) when p = q = 1. For each part (i), (ii) and (iii), illustrate the demand for candy as afunction of wealth in an appropriate diagram