3) Diminishing marginal rate of substitution can be seen when indifference curves A) become flatter as we move down and to the right. B) are downward sloping. C) cross. D) are concave.
Q: The average price of milk per gallon was $1.85 in 1980 and $4.53 in 2017. The consumer price index…
A: "Consumer price index depicts an overall change in price levels over time on the basis of a…
Q: ENGINEERING ECONOMICS The ABC Foundation expects to award Php15,000,000 in grants to public high…
A: B/C ratio(Benefit-Cost Ratio) is used to do a cost-benefit analysis. The relative costs and benefits…
Q: of Japan, the UK, China, and South Sudan in the period 1996-2015 (Sou 2006-2010 2011-2015 -0.5% 1.6%…
A: In the table it is shown that the inflation of four countries namely Japan, UK, China and South…
Q: 2 1 1 2 3 678 9 • Identify curves - for one isocost curve and one isoquant draw an arrow to indicate…
A: Isoquant refers to the curve that shows the different combinations of capital and labor that produce…
Q: When the old AT&T had a virtual monopoly on long distance service, it created a rate structure that…
A: Here, the information about the different rate structure of the old AT&T that has a virtual…
Q: a. Increasing costs can force the cost basis of two trading nations to converge b. Labor union…
A: Partial specialization takes place while nations have interaction in alternate with every other. It…
Q: al Saving of dollars) 55 50 45 40 Domestic Investment (Billions of dollars) 30 40 50 60 70 Net…
A: Below table represents the computation of investment + net capital outflow Real interest rate…
Q: What is BAFTA and CEFTA and what was their ultimate aim
A: The British Academy of Film and Television Arts (BAFTA) is a prominent independent arts foundation…
Q: The demand and supply functions for product x are given, respectively, by the equations: P = 83.6 -…
A: According to the question, The demand and supply functions for a product is given. Demand…
Q: In market economies, most decisions are made by ___, while in command economies, most economic…
A: (Q) In market economies, most decisions are made by ___, while in command economies, most economic…
Q: 4
A: Marginal cost of firm behaves like supply curve and when tax is implemented the supply curve will be…
Q: 22. Define the following: Per capita Income Monetary Policy World Bank International Monetary…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Use Figure 1 above to determine the effect of the following changes on the exchange rate. For each…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: If elasticity of demand is greater than elasticity of supply, more tax incidence will be on who? A.…
A: Taxes are unintended fees placed on individuals or companies and levied by a government agency –…
Q: The figure shows the supply curve of lead Between points A and B, the elasticity of supply is OA.…
A: Elasticity measures the responsiveness of quantity supplied to changes in price.
Q: yield per 2 - 10 20 30 40 50 fertilizer applied per ac on shows that over the range shown
A: the production function is a condition that communicates the connection between the amounts of…
Q: Assume in the market with two consumers, Chloe and Oliver. Chloe's utility function is U(x, y) = 2x…
A: When there are no more adjustments that can be made to the economy that can make one person better…
Q: = 2x₁ + x2. Income = $100. p₁ = 28 and p2 = 10. The utility maximizing quantity of x2 is? Round your…
A: Utility refers to the satisfaction. The aim of the consumer is to maximize the utility subject to…
Q: According to Excel's sensitivity report for the previous formulated model (Eagle Tavern), the shadow…
A: Here, Betty Malloy, owner of the Eagle Tavern in Pittsburgh, is preparing for Super Bowl Sunday for…
Q: Assume that Pablo and Micah can switch between producing baseballs and producing bats at a constant…
A: Opportunity cost in general terms can be understood as the benefits of a good or commodity lost due…
Q: Discuss the problem of inflation in India
A: Inflation Inflation is the gradual loss of a currency's buying value. The increase in the price…
Q: As above, the market for eggplants is known to be monopolistic. The demand curve for eggplants is…
A: A deadweight loss happens with syndications similarly that an expense causes deadweight loss. At the…
Q: Which of the following is NOT a key principle of economics
A: Economics is a social science that deals with the production, distribution, and consumption of goods…
Q: Explain how to use the sharing economy Uber platform for transportation in South Africa?
A: Individuals and groups can profit from underutilized assets by participating in sharing economies.…
Q: If MLR 1-4 hold, then OLS estimators are correct are unbiased and inconsistent…
A: In regression analysis, if the multiple variables regression (MLR) holds 1-4, then it implies that…
Q: A principal can choose to make the allocation of tasks broad (B) or narrrow (N). At the same time an…
A: We have two players simultaneously move game where one player is principal and other is agent
Q: Economics Explain (in detail with example) three assumptions for the perfectly competitive market.
A: Perfect competition is a type of market structure in which there are large number of buyers and…
Q: A direct inducement that offers an extra value or incentive for the product to the sales force,…
A: Singer Bangladesh Ltd was founded in 1905, when the first Singer sewing machines were sold in…
Q: Suppose the production function for high quality brandy is given by : Q = √KL Where q is the output…
A: Given Information : Production function is given as: Q =√KL K =100 Q = 10 √L
Q: Question 15 If the GDP is at 7.1% growth and the RGDP is at 2.2% growth, then the inflation rate is
A: Ans. 15. The inflation rate by approximation formula is the difference between real GDP and Nominal…
Q: Q6. Jawal and Watanya represent an oligopoly environment, discuss the main features for such…
A: An oligopoly is a business situation in which a small number of players have a lot of power but no…
Q: Just based on general information you possess, do you think the demand for computers is likely to be…
A: Elasticity refers to the change in quantity demanded of a product due to change in its price. If the…
Q: 21
A: Short run production function means where only one factor is variable in nature and other factor…
Q: Q8. Discuss the differences between short run VS long run Firm Supply in competitive market…
A:
Q: Why does price leadership sometimes evolve in oligopolistic markets?
A: Price leadership refers to the competiton among firms to get some control over market price and…
Q: 1
A: Isoquant curve is the possible of two combination of inputs which give same level of production .
Q: 1. The following prices and quantities produced were recorded in computer land during the years…
A: Nominal GDP = Price of Mousepads * Quantity of Mousepads + Price of Maps * Quantity of Maps + Price…
Q: Kevin, Rajiv, and Yakov run the only saloon in town. • Kevin wants the saloon to bring in as much…
A: Firm's equilibrium is the point where profit of firm is maximum and it determines the price and…
Q: Show that the real wage implied by price-setting behaviour is a constant fraction of the marginal…
A: Real wage: It refers to the wages of the people that they actually get. The increase in real wages…
Q: If a society allocates resources so that it produces eficiently, then it is producing at a point A…
A: The answer is - A. On its production possibility frontier that is most desirable.
Q: Ellie enjoys basketball (b) and soccer (s) according to the function U(b, s) = 3b + 4s. She has $120…
A: Utility function is an important idea that measures inclinations over a bunch of goods and services.…
Q: Refer to Figure 2-13. Which of the followings statements is most accurate about payments for goods…
A: Chart is showing interaction between household and firm through the factor market and good market.…
Q: What is the key takeaway of the main study in the Gneezy and Rustichini paper?
A: Gneezy and Rustichini paper namely "A fine is a price" is based on group of day care centres. The…
Q: a. $30 b. $60 c. $100 d. $75 Price $10
A: consumer surplus, also called social surplus and consumer's surplus, in economics, the difference…
Q: Please do the both questions I will be give you Upvote 3: If a country increases its money supply…
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…
Q: Explain the factors that might cause a country’s exchange rate to depreciate.
A: A fall in the conversion scale/exchange rate is known as a depreciation in the conversion scale. It…
Q: (b). Which of the following is not a result of expansionary Open Market Operations? O a. Increase…
A: Open Market Operations and Interest Rates Contractionary policies necessitate central banks to sell…
Q: In a small open economy, if domestic saving equals $50 billion and domestic investment equals $50…
A: Given: Savings = $50 billion Investment = $50 billion.
Q: 6. Consider the following Cobb - Douglas utility function: U = XayBzY *Note, it should be assumed…
A: The Cobb–Douglas function is often used as a utility function. Utility is a function of the…
Q: To maximize output, setting clear goals will enhance employees' performance. True or not True?…
A: Employees performance is characterized as how a representative satisfies their work obligations and…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Mrs. Griffiths earns $5000 a week and spends her entire income on dresses and handbags, since these are the only two items that provide her utility. Furthermore, Mrs. Griffiths insists that for every dress she buys, she must also buy a handbag. Suppose the price of a dresses increases to $200 and income decreases to $4200. What is the new algebraic equation for Mrs. Griffiths budget constraint? Show the impact of the new budget line relative to the original budget line. What would be the new marginal rate of substitution that corresponds to the optimal consumption choice? Interpret the marginal rate of substitution. Assume for this question only that when the price of dresses decreases, less of that good is demanded. Illustrate the income and substitution effect of this price decrease.Mary has two dinner options available: eating a home cooked meal for $150 per meal, or at a restaurant for $260 per meal. Her weekly budget is $2500.iii. What would be the marginal rate of substitution at the point thatcorresponds to the optimal consumption choice? Interpret the marginalrate of substitution. iv. Suppose the price of a home cooked meal increases to $200 and incomeincreases to $4200. Show the impact of the new budget line relative to theoriginal budget line. What would be the new marginal rate of substitutionthat corresponds to the optimal consumption choice? Interpret themarginal rate of substitution.Suppose that the quantity of tacos consumed per month is on the x-axis and the quantity of pizzas consumed per month is on the y-axis, a decrease in the price of pizza holding the price of tacos constant will A. cause the budget line to shift inward toward the origin in a parallel fashion. B. cause the y-intercept to remain the same, but the -intercept will move away the origin. C. cause the budget line to shift outward from the origin in a parallel fashion. D. cause the x-intercept to remain the same, but the y-intercept will move away from the origin
- Explain how Consumer Choice Theory helps explain decisions concerning the consumption of two goods. Further, discuss how Indifference Curves apply to this theory and the role played by the Budget Constraint. Note: apply the goods to inputs used in your fictitious business idea.Mrs. Griffiths earns $5000 a week and spends her entire income on dresses and handbags, since these are the only two items that provide her utility. Furthermore, Mrs. Griffiths insists that for every dress she buys, she must also buy a handbag. i)Suppose the price of a dresses increases to $200 and income decreases to $4200. What is the new algebraic equation for Mrs. Griffiths budget constraint? Show the impact of the new budget line relative to the original budget line. ii)What would be the new marginal rate of substitution that corresponds to the optimal consumption choice? Interpret the marginal rate of substitutionSuppose Suzy Slacker really has no interest in a television set without a remote control, and she certainly has no interest in a remote control without a television set. Suzy's indifference curves for television sets and remote controls are likely to be Multiple Choice straight lines with a constant marginal rate of substitution. curved with an increasing marginal rate of substitution. curved with a decreasing marginal rate of substitution. L-shaped.
- (d) What point in the graph will lead to utility maximizing with the budget line LZ and the indifference curves as shown above? Please label the point C. (e) What is the marginal rate of substitution (slope of the indifference curve) at the utility maximizing point you have shown in (d)?(f) Please explain why the consumer will not choose point A or point B.If bananas are on the x-axis and apples are on the y-axis, then the marginal rate of substitution is (select all that apply): MUa/MUbMUa/MUb MUb/MUaMUb/MUa the absolute value of the slope of the indifference curve that goes through the current consumption bundle.the absolute value of the slope of the indifference curve that goes through the current consumption bundle. the number of apples the consumer is willing to give up to get an additional banana.the number of apples the consumer is willing to give up to get an additional banana. the number of bananas the consumer is willing to give up to get an additional apple.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) 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. B) What would be the new marginal rate of substitution that corresponds to theoptimal consumption choice? Interpret the marginal rate of substitution. D) Assume for this question only that when the price of computers decreases, less ofthat good is demanded. Illustrate the income and substitution effect of this pricedecrease.
- 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, a) 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. b) What would be the new marginal rate of substitution that corresponds to theoptimal consumption choice? Interpret the marginal rate of substitution. c) Assume for this question only that when the price of computers decreases, less ofthat good is demanded. Illustrate the income and substitution effect of this pricedecrease.A consumer’s utility function is given by the expression: ( )2 0.5 0.5 U = 0.6X + 0.4Y . • Determine the marginal utility functions for each commodity. Does marginal utility decrease when consumption increases?• Assuming that the price of good X is Rs 15 and the price of Y is Rs 6, write the equation of the budget line and plot it when income is Rs 450. What is its slope? What does it indicate?• Calculate the marginal rate of substitution of Y for X and interpret its economic meaning. Write the equation showing consumer’s equilibrium condition. • Obtain the equilibrium values of X and Y. • Find the expressions for change in MUX due to increase in Y and change in MUY due to increase in XQ30 The marginal rate of substitution is the... a. Rate of substitution between the marginal values of any two goods. b. Rate of substitution between the total utility of any two goods. c. Substitution of one good for another as we move along the budget line. d. Amount of one good the consumer is willing to give up in exchange for another to keep total expenditure unchanged. e. Amount of one good the consumer is willing to give up in exchange for another to remain indifferent.
