4. Consider the general multiplicatively separable utility function given by u (x1,x2) = pu1 (x1) u2 (x2), and budget constraint given by pič1 + P2X2 = w. (a) Find the wealth effect for good 1. Show that, for a "well-behaved" utility function of this form (i.e., > 0, i = 1,2; and * < 0, i = Explain intuitively why this should be so. 1, 2), good 1 must be a normal good. (b) Find the own price effect for good 1. (c) Show that good 1 being a normal good is a sufficient condition for good 1 not being a Giffen good.

Q: Use a graph to illustrate the quantity of pollution that would be emitted (a) after a corrective tax...

A: Suppose Demand for pollution is P=30-Q, If a tax of $10 per unit is set, the optimal amount of pollu...

Q: If the family chooses not to do the video bonus question, they will receive a utility of To determin...

A: Since it is not clear from the graph what is the exact utility at some points, for example at budget...

Q: Which of the following would cause the aggregate supply curve to increase... A) Energy prices such ...

A: Aggregate Supply curve is an upward sloping curve showing positive relationship between price level ...

Q: Another word for elasticity is

A: What is another word for elasticity.

Q: The unemployment rate in a town in which 85,300 persons are employed and 13,000 are unemployed equal...

A: The unemployment refers to the economic condition where the a worker wants to work but still he does...

Q: 7. Bank capital is equal to ________ minus ________.   Question 7 options:   a) ...

A: Bank capital shows the net worth of any bank by checking the bank's assets and liabilities. 

Q: need answer in 15 mins sorry for rushing :(

A: Given:

Q: Determine the national LDV gasoline consumption using ASIF method! Please use following data to comp...

A: ASIF represents the factors of a conventional condition to compute the GHG discharges of transport t...

Q: Most economists international trade because elect the correct answer below: oppose; it hurts domesti...

A:   The country in international trade will always be better off because it increases the net social w...

Q: d. Expanded use of online payments reduces the amount of money people want to hold. The central bank...

A: Answer: Note: it is not clearly mentioned what changes have to be made. Seeing the figure it seems t...

Q: Consider a used-car market with asymmetric information. The owners of used cars know what their vehi...

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...

Q: In your own opinion, what would happen to an operation or mission in military if there were no commu...

A: Communication is very important for handling the mission in the military. There are many individuals...

Q: Suppose that the logging industry in Canada is unregulated, and anyone can cut-down a tree on public...

A: Social cost is the sum of private cost and external cost, if exists.

Q: Given the supply and demand functions Qs = ( P + 8 ) ( P + 20 )1/2 QD = 460 – 12P 3P2 / ( P + 20 )1/...

A: Answer: Given, QS=P+8P+20QD=460-12P-3P2P+20 At equilibrium,QS=QDP+8P+20=460-12P-3P2P+20P+20P+20=460-...

Q: Why does high compensation (wages) with little or no output from the worker is bad for the economy? ...

A: Wage: The term wage refers to the remuneration that is paid to workers against their work. In most c...

Q: A firm operating in monopolistic competition is maximizing its profit and earning negative economic ...

A: In monopolistic competition, there are many sellers with some market power. Marginal revenue lies be...

Q: Calculate the missing information in the table 17.1.  Year Real GDP Nominal GDP GDP Deflator Price o...

A: Nominal GDP is the value of final goods and services produced and real GDP is the value of final goo...

Q: Consider “Providing a Public Good under Incomplete Information". (refer to pages 70-74, lecture note...

A: Given information There are 2 consumer C1 and C2 C1 has 2 strategy and C2 has 2 strategy 2 public go...

Q: (A) roydes PPC Japan PPC in Vetnam In reference to the above graph, suppose Vietnam and Japan are pr...

A: Note:- Since we can only answer one question at a time, we'll answer first one. Please repost the qu...

Q: An economist estimated the cross-price elasticity for peanut butter and jelly to be 1.5 . Based on t...

A: Given Cross price elasticity for peanut butter and jelly is 1.5

Q: Which of the following scenarios would result in a decrease in Aggregate Demand? A) The congress pa...

A: Aggregate Demand is the sum of consumption expenditure, government spending, investment spending and...

Q: In Engineering Economics, which among these is/are true about a discount? A. It is the difference be...

A: Discount rate:- In a discounted cash flow (DCF) evaluation, the discount rate can be explained  as t...

Q: Jan wealth W = 100, has a utility function with respect to wealth of U = .5W^(2) , and faces a gambl...

A: Given: U=0.5W^(2)

Q: 16. The elasticity of labor supply implied by the following table taken from Ashenfelter et al. (Eco...

A: Elasticity of labour supply: Elasticity of labour supply is measured by divinding the percentage cha...

Q: Rajiv lives in Denver and runs a business that sells boats. In an average year, he receives $842,000...

A: Opportunity cost: - opportunity cost is a forgone benefit that we could have earned by applying all ...

Q: f the elasticity of demand for college textbooks is -0.1, and the price of textbooks increases by 20...

A:

Q: The legislation that separated investment banking from commercial banking until its repeal in 1999 i...

A: The legislation that separated investment banking from commercial banking until its repeal in 1999 i...

Q: True or False 1. For any economy study based on our discussions, it is always necessary to determin...

A: In a market, there are different ways to analyze an investment whether it is feasible or not, accord...

Q: he Malthusian population trap tell us that    a. trade routes of people is responsible for populatio...

A: The Malthusian Trap claims that as the world's population grows, crop production will be insufficien...

Q: What are the possibilities that cause a change in the unemployment rate according to this table? Rel...

A: The possibilities that cause a change in the unemployment rate according to the table given in the q...

Q: depreciation rate of 8.9 %. What does this country's savings rate need to be in order to sustain a s...

A:

Q: Question: What are the equations for measuring return and risk?

A: Return and risk help us choose which investments to undertake. Returns are calculated based on the i...

Q: Millie is looking at the sales forecast for the sales of classic waffles. She has given you some cos...

A:

Q: A question that needs an answer: Explain your position on commodities as a public or private good T-...

A: Public Good : The good which is non excludable and non rivalrous. Private Good : The good which is e...

Q: 3. Consider a repeated version of the following stage game: Player 2 Y 10, 10 В 20, —20 A -20, 20 0,...

A: Given information There are 2 players 2 stage game Discount factor=0 Pay off matrix    

Q: In early 2019, the Powerball lottery was advertised as having a payoff of $750,000,000. The winner w...

A: Present value (PV) is the current value of a future amount of cash or stream of incomes given a pred...

Q: Which of the following is the best example of a moral hazard problem?   Question 25 options:   a) ...

A: When talking about moral hazard, it is the situation that arises after a transaction is made between...

Q: Identify within the caribbean region, at least one agency that can provide a Multi-National Corporat...

A:  we have show that ,Caribbean Export is the only [Càribbean] Export Promotion and Trade Agency. Its ...

Q: Supply Demand QUANTITY the cost of a unit to a seller. For an output level above QE, the value of a ...

A: In the above diagram, the market is said to be in equilibrium at point A where the demand curve inte...

Q: Assume i=0%, beta=1. Consumer has income of 80 in year 1, 100 in year 2.

A: Given the beta = 1 Year 1 income = 80 Year 2 income = 100

Q: A free trade agreement is characterized by Select the correct answer below: O coordinated monetary a...

A: Answer: Free trade agreement: A free trade agreement is a pact signed by two or more countries to tr...

Q: Please refer to the table shown above that depicts a third-party payer market, What is the cost of t...

A: Let we show, concider  quntity demanded  at $1 and  same quntity supplies show in table

Q: omework (Ch 07) The following graph shows the weekly market supply of cheesecake in a small economy....

A: Answer: Producer surplus: it refers to the area between the market price and the supply curve. Graph...

Q: B. How do world Religions view Business Ethics?

A: The world's eight major religions are Judaism, Christianity, Islam, Hinduism, Buddhism, Confucianism...

Q: QUESTION 2: What is the difference between push factors and pull factors? Explain. (4 POINTS) QUESTI...

A: QUESTION 1: What are the economic problems of the Philippines? Enumerate. (5 POINTS) Philippines is ...

Q: Consider the market for electronic components ("chips") and assume that there is complete competitio...

A: Supply bottlenecks Supply bottlenecks means the pressure on the seller to increase or decrease suppl...

Q: Which of the following would cause the Aggregate Supply curve to move from AS to AS2 in the graph be...

A: Answer: According to the above figure, if the supply curve shifts from AS to AS2 it means the firms...

Q: D. Q, Quantity (bags) Quantity (bags) Instructions: Round your answers to two decimal places. a. Wha...

A:

Q: If a consumer has rational, monotonic, and convex preferences, which of the following is true concer...

A: A change in the price of a product leads to a change in demand for that product. This is called the ...

Q: Female and Male labor force participation in the US have similar levels and have followed similar ti...

A: The labor force participation rate calculates the percentage of total working age population partici...

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.