Solve step by step in digital format If the slope of the total income curve is given by 12-13q and if p=6 when q=4. Find: a) The function of total income as a function of q. b) The equation of the inverse demand curve.
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- Suppose household annual demand for gasoline follows the equation QD = 2000 – 500P + 25I where P is the price of a gallon of gasoline and I is household income in 1000s of dollars. Suppose that P = 3 and I = 60. What quantity of gasoline will households demand at this price and income level?Elaborate and explain all possible effects of change in income to the equilibrium of consumer.Given the consumption function C = a + bY (with a>0, 0 < b<1): a. find its marginal function and its average function. b. find the income elsaticity of consumption ECY, and determine its sign, assuming Y > 0. c. Show the income that this consumption function is inelastic at all positive income levels
- Compare the impact of a recession that reduces consumer income by 10 percent on theconsumption of technology goods and house rentals. Suppose that the income elasticity ofdemand for technology goods is 3 and the income elasticity of demand for house rentals is0.3. Based on your response, make a policy argument to support through governmentfunding either businesses or house rentals.True/ False Income and consumption has a direct relationship for the normal goods.Given the consumption function C = a + bY (with a > 0 ; 0 < b < 1): (a) Find its marginal function and its average function. (b) Find the income elasticity of consumption ECY, and determine its sign, assuming Y > 0. (c) Show that this consumption function is inelastic at all positive income levels.
- Suppose that in the figure to the right, the government detemined that the amount by which the AD carve had to be shifted directly was required to generate this shif, what must be the value of the MPC? The value of the MPC assaciated with this shift is ◻ (Enter your response rounded to two decima' places) .following the estimation of the income elasticity of demand. During this analysis, utilize the logarithmic transformations of PCE (Personal Consumption Expenditures) and PDI (Personal Disposable Income). Could you please provide the calculated cointegrating coefficient and its interpretation? > A) The calculated cointegrating coefficient is -0.09, indicating that there is a lagged adjustment of PCE to DPI. Approximately 9 percent of the difference between long-term and short-term PCE is corrected within a quarter. > B) The calculated cointegrating coefficient is -0.069, indicating that there is a lagged adjustment of PCE to DPI. Approximately 6.9 percent of the difference between long-term and short-term PCE is corrected within a quarter. > C) The calculated cointegrating coefficient is -0.08, indicating that there is a lagged adjustment of PCE to DPI. Approximately 8 percent of the difference between long-term and short-term PCE is corrected within a quarter. > D)…If the price of a good rises, then the effect on the income of the factors that are used intensively in itsproduction will beA) to raise income by an absolute amount that is less than the rise in prices.B) to raise income by an absolute amount that is more than the rise in prices.C) to raise income by a smaller percentage than the rise in prices.D) to raise income by a greater percentage than the rise in prices.
- Suppose that when the price of a good rises by 8%, the quantity demanded that good falls by 13%. What is the approximate change in total expenditure (or total revenue)? Express your answer as a percentage. I got -6% but it is incorrect.Consider the utility functionU(x, y) = min{x, 2y}Find(a) the Marshallian demand functions for x and y,(b) the indirect utility function,(c) Use the expression for the indirect utility function that your found in part (b) to findthe expenditure function and the Hicksian demand for good x. [Note: Do not answerthis question by solving the expenditure minimization problem!]For the following economy, find the equilibrium level of income. C = 10 + 0.75Y I = 50 – 5r r = 25 - MS G = 20 MS = 20 (assume price level, P = .5)