(a)lf we allow for the possibility of satiation, the consumer's budget constraint takes the form pxs pw, Walrus' law then becomes pz(p) so for all p2 0. Show that the standard textbook proof of the existence of Walrasian equilibrium still applies for this generalized form of Walrus' law.
Q: Suggest solutions to the three major weaknesses of the New Classical Theory.
A: New classical approach Robert Lucas, T. Sergeant, and others developed it in an attempt to change…
Q: Which of the following policies would the Federal Reserve most likely use if the economy was…
A: When the economy is experiencing an inflationary gap (or high inflation), then there is a need to…
Q: 27. A firm has a total revenue of $90,000. Its total explicit costs are $50,000, and its total…
A: The information given is as follows:- Total revenue = $90,000 Explicit cost = $50,000 Implicit cost…
Q: Question 35 Classical Growth theory predicts that O aggregate income always returns to the…
A: Question 35) "Classical growth theory's fundamental principle is that the economy is…
Q: 2(b)There are three people and two goods in an economy. The utility given below: U1 = X11X 12 U2 =…
A: Marginal rate of substitution refers to the rate at which one good can be substituted with other…
Q: Explain the national economic system under which the USA operates
A: The United States has a mixed economy. It works as indicated by a financial framework that…
Q: Tower City aims to construct a new bypass between two main routes that will reduce commuter travel…
A: Annual worth or AW is referred to as the easy way of understanding the annual amount, for instance,…
Q: (35) Consumers who gain the highest marginal benefit from a good supplied by a perfectly…
A: In perfect price discrimination, firm charges the price equals to the willingness to pay of each…
Q: 4. Currently, the poverty threshold for a family of four is just over $25,000 a year. Among the…
A: The poverty threshold refers to the minimum level of income an individual or a family needs to…
Q: Determine which option, if any, should be chosen based on net present worth using a 8% interest…
A: Project A First cost=$5000 Uniform Annual Benefit = $1100 Useful life=5 Year Project B=10200 Uniform…
Q: A firm's production is given by q = 5L 3 K 3. (a) Calculate APL and MPL. Determine if the production…
A: The law of diminishing returns refers back to the idea that the greater we make use of something,…
Q: WHAT IS THE IMPORTANCE OF ECONOMIC GROWTH?
A: Economic growth indicates that a country's limited resources are being used more efficiently. It is…
Q: How can the variables in the local environment help improve the lives of the poor?
A: When talking about enviornmental variables in economics, it includes consumption behavior,…
Q: Upon purchase of a brandnew asset, the capitalized cost would be different from its replacement…
A: Depreciation means the reduction in the value of fixed assets over period of time. It help to…
Q: The inflation rate in a country is 6% per year. What real rate of return will an investor make on a…
A: Real Rate of return is the proportionate or the profit percentage earned on investment after making…
Q: Find the net present worth of the following cash flow series at an interest rate of 9%.
A: Net present value (NPV) formula: NPV = ∑i=1nCi(1+r)i - Initial investment. Where Ci is cash flow in…
Q: Stock Market Prices: Demand and supply in Action Firms that are quoted on the stock market can raise…
A: A stock market, sometimes also known as an equity market or a share market, is a place where buyers…
Q: In which of the scenarios below would Fed decisions geared towards eliminating GDP gaps lead to a…
A: Introduction : inflation is a general increase in the prices of goods and services in an economy.
Q: Draw a budget line with good X on the x-axis and Good Y on the Y axis. Graphically illustrate the…
A: Price effect is basically a term that is used to describe the change in the demand preference of a…
Q: (a) DEMAND RATE When the price of a certain commodity is p dollars per unit, customers demand x…
A: The demand rate is characterised as the number of units, and the worth of a thing mentioned by a…
Q: Suppose that the government knows the marginal cost, MC, curve of reducing pollution but is…
A: Marginal cost (MC) shows the rate at which the whole cost of a product transforms as the production…
Q: What could explain why unemployment is lower among workers with a relatively higher level of…
A: The labor market maintains a wage bias in favor of improved human capital and skills.The highly…
Q: d) If a price ceiling of $17.50 is imposed by the government on the monopolist, estimate (based on…
A: Price ceiling is a phenomenon where prices are set up by the government in such a way that it fall…
Q: Which statement about the economic crisis of the 1970s is INCORRECT? A. American manufacturing was…
A: The economic crisis of the 1970s The year featured some of the greatest inflation rates in recent…
Q: 103.9 172.2 177.1 179.9 184.0 articular car cost $13000 in 1984, Using the CPI, which is the best…
A: A consumer price index is a cost record, the cost of a weighted typical market crate of buyer labor…
Q: Why do we expect that indifference curves will never cross?
A: The indifference curves are the convex curves which shows the combinations of two goods that tend to…
Q: For each of the following monetary policy tools: A. The BSP buys securities in the open market. B.…
A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, I will be…
Q: ppose a basket of goods and services has been selected to calculate the CPI and 2012 has been…
A: consumer price index is a index which measure the change in price of basket of goods and services…
Q: A farmer can plant up to 8 acres of land with wheat and barley. He can earn $5,000 for every acre he…
A: Given:- x=number of acres of wheat y=number of acres of barley p=total profit that can be earned To…
Q: Amy must decide whether or not to make an investment that costs 1. The investment pays a return of…
A: In the given scenario, amy is a first mover and bil is a second mover in the game.
Q: Craig Nuts Inc. will need to invest in a new nut cracking machine. The plant engineer has gathered…
A: Given, First Cost : $250,000Annual Benefits : $73,000 in the first year and decreases by $1,200…
Q: QuickPics is an assembler of digital cameras. As an assembler, QuickPics' operations are limited to…
A: At the marketplace, when a firm wants to grow its business, it may use various economic and business…
Q: Green is a business selling worm farm start-up kit for $12 each. This year, Go Green's fixed cost…
A:
Q: 1. An individual has a utility function, U(q,,92) = V91 92). (Mathematical assistance: Vx = x2…
A: We have utility function u=(q1q2)1/2 And prices p1, p2 for q1 and q2 respectively.
Q: Discuss the limitations of the use of the Gross Domestic Product(GDP) as a measurement of…
A: The total worth of products and services produced in an economy during a given time period is…
Q: Lars has asserted that he prefers bacon to sausage, sausage to chips and chips to bacon. Based on…
A: A specialist has complete preference s in the event that she can think about any two articles. A…
Q: 2a. What is the difference between Kyoto Protocol and Montreal Protocol? 2b. What kind of regulatory…
A: Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: What is the future worth of a series of equal year-end deposits of $2,200 for 14 years in a savings…
A: * SOLUTION :- Given that , Annual Deposit = $2,200 Life = 14 Years Interest Rate = 7%
Q: 3. To advertise or not to advertise Suppose that Expresso and Beantown are the only two fims that…
A: The dominant strategy is the best procedure picked by players. At the point when the two players…
Q: 1) The equation that economists use to measure the utility from a bundle of goods is called the…
A: Utility is the value or satisfaction which a consumer gets from consumption of goods.
Q: Market for Clothing in CambodiaConsumer SurplusProducer SurplusPrice of ClothingQuantity of…
A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…
Q: Nikki owns a business that imports several types of products from countries that have poor economic…
A: If there are more employment opportunities available then this may lead to improve the economic…
Q: A reserve price is a minimum price set by the auctioneer. If no bidder is willing to pay the reserve…
A: Bidding: Bidding can be defined as an offer to establish a price for a commodity, either by an…
Q: Year Website A GDP Website B GDP $50 million = P1980 Q1980 600 million = P2020*Q2020 1980 $200…
A: Year 1980 Website A GDP $50 million = P1980 * Q1980 Website B GDP $200 million = P2020 * Q1980…
Q: In order to cut the cost of electricity consumption in a certain establishment, a solar-powered…
A: Initial Cost of solar -powered system = 370,000 Maintenance Cost = 3000 (Increasing 200 )…
Q: Discuss the importance and solutions to the limitations of the Mundell-Fleming Model.
A: An economic model that was first proposed (independently) by Robert Mundell and Marcus Fleming is…
Q: what is eurocurrency
A: The expression "eurocurrency" applies to any currency deposit held beyond the home market in which…
Q: With respect to the concept of inflation, it is correct to say that ________. options: A)…
A: Inflation is the rate of increase in average price level of goods and services
Q: Below are some data from the productions of milk and honey. a) Compute nominal GDP, real GDP, and…
A: Year Price of milk Q of milk Price of honey Q of honey 2010 $2 15000 $5 2500 2011 $2.15 16250…
Step by step
Solved in 2 steps with 1 images
- True/False/Uncertain: 1. In taking an exam, Atack, a rational student, allocates his time to the various questions so as to equalize hismarginal point utility per minute on all questions. 2. The marginal utility of food to Zecher depends only on the amount of food (and not on the amount ofhousing) and the marginal utility declines as more food is consumed; likewise for housing. Therefore,both food and housing are normal goods. (Hint: Express the optimality condition for Zecher’s [UMP], MUF/MUH = PF/PH. Notice that PF/PH is fixed. If all of an increase in income is spent on F, can the equality be maintained?)The consumer choice is not restricted to the choice of consumptiongoods. In fact, it can apply to all our decisions that involve trade-offs. Suppose Mary has awage per hour of 10 euros. With her earned income she consumes. That isC=wH per day.She also decides how many hours to work of take leisure time each day.H=24-N, whereHis work and N is leisure. Her utility is given by (picture) Solve for the optimal decision of labor/leisure. Plot the budget constraint and the indif-ferent curve. What is the labor supply function?Suppose that Marissa is interested in buying some beers and hamburgers. Her budget constraint for these two goods is given below: If beers cost $6/beer, how much income does she have to spend on beer and hamburgers? Group of answer choices $24 $18 $12 not enough information to answer the question
- Suppose that the initial allocation is point a between Ross and Rosa. A. Discuss how Ross’s condition be made better off without harming Rosa (i.e., Rosa maintains her level of utility). B. Illustrate this in a separate diagram and label point/s as necessary (also, if other point/s will have to be made or incorporated).q 14. suppose that MUx=10 and MUy=20. Furthur suppose that the consumer's budget constraint can be expressed as 20x+10y=400. For this consumer, the optimal amount of good x to buy would be.Suppose the consumer's utility function is given by U(x,y) = X3/5y2/5, and the exogenous variables are given by M = 500, Px = 5, and Py = 4. Price of y changes to Py = 2. What is the income effect ony?O A.-14.53O B. +14.53O C. +24.21O D. +25.79O E. None of the above
- Suppose the consumer's utility function is given by U(x,y) = X3/5y2/5, and the exogenous variables are given by M = 500, Px = 5, and Py = 4. Price of y changes to Py = 2. What is the income effect ony?O A.-14.53O B. +14.53O C. +24.21O D. +25.79O E. None of the above Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.On a given evening, J. P. enjoys the consumption of cigars (c) and brandy (b) according tothe functionU(c, b) = 20c− c²+ 18b − 3b²a. How many cigars and glasses of brandy does he consume during an evening? (Cost isno object to J. P.)b. Lately, however, J. P. has been advised by his doctors that he should limit the sum ofglasses of brandy and cigars consumed to 5. How many glasses of brandy and cigarswill he consume under these circumstances?How would you demonstrate part b) diagramatically 6. Assume you can work as many hours you wish at £12 per hour (net of tax). If you do not work, you have no income. You have no ability to borrow or lend, so your consumption, c, is simply equal to your income. a) Derive and plot the feasible set, between daily values of consumption c, and “leisure”, l. Label the values at the intercepts (the points where the feasible frontier cuts the two axes). b) Assume that your optimal choice of consumption and leisure is to work 8 hours per day. Illustrate this choice diagrammatically using the feasible set and indifference curves.
- Now,suppose N=3 with a market clearing interest rate. The first two agents are the same as earlier. The third agent has an endowment of 20 in the first period and consumes 15 in the second period. If the first two agents each consumed 21 units in the first period, how much did the third agent consume in the first period? Plz do fast(a) Dividing MUX and MUY by their respective prices compute the weighted marginal utility or marginal utility of money expenditure and draw up Table 2 showing diminishing returns for the consumption of the 6 units? (b) Briefly state what you can infer on this equation; MUX/PX = MUY/PY as far as equi marginal principle and managerial economics is concerned? C)Given that MUX/PX and MUY/PY are equal to 6 when 5 units of X and 3 units of Y are purchased. By purchasing these combinations of X and Y, calculate the amount the consumer will spend and derive the maximum satisfaction from combination of these units. (d) Applying the above principle illustrate in terms of a figure, and draw marginal utility curves for goods X and Y. You need to use marginal utility and price i.e. Marginal utility per Kwacha spent on good X = MUX/PX, and that of Y = MUY/PY. The MUX/PX curve should be shown in figure (a) while the MUY/PY curve should be shown in Fig (b). Please do not draw negative…Q2. Preferences and utilityLet's assume that country A prefers not to make additional concessions (outcome C1) to country B than granting those concessions (outcome C2), but a continued war (outcome C3) would be worse than making the additional concessions (C2). The following utility function over the outcomes specifies the intensity of preferences for country A over the outcomes: u(C1) = 1, u(C2) = 0.3, and u(C3) = 0. Country A can choose to refuse concessions (action A1) or allow concessions (action A2). The outcome that will occur is a function of the "type" of country B's leader.If country A refuses concession (A1), country B will not initiate a war (outcome C1) if country B's leader is amicable, while it will enter a war (outcome C3) if the leader is belligerent. There is a probability p(S1) = 0.6 that country B's leader is amicable and a probability p(S2) = 0.4 that country he's belligerent. If country A allows concession (A2), both in case of country A is amicable p(S1) and…