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Explain the relationship in Okun’s law? Also, explain the relationship of
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- Question3 a) Suppose a household is faced with the choice between consuming gasoline (G) and all other goods (OG). Today the household consumes 800 liter of gasoline a year.Suppose then that a gasoline price increase is perfectly compensated by a wage increase. If the family followed the utility maximization model, how would this affect their consumption of gasoline? Explain by using a figure. b) Explain by using an example why an MRS (Marginal Rate of Substitution) between two goods must equal the ratio of the price of the goods for the consumer to achieve maximum satisfaction?Economics explain both figures individually and under seperate heading. mention what is happeninh in both the graphs and why there is shift in the curves. how the curves effect the variables mentioned in x and y axis. give a detailed explaination and step wise.Please explain two principal variables that have determined the commodification by giving examples.
- Assume you have a two-good model: Beverages are on the X axis and Food on the Y axis. You have a $400 budget. The price of beverage is $10, and the price of food is $20. a. Graphically illustrate the budget line correctly. b. Now assume the price of food decreases to $10 ceteris paribus. Graphically note the change on the same graph. PLEASE SOLVE THIS QUESTION WITH PROPER AND UNDERSTANDABLE GRAPHHenry has $450 to spend on movies and concerts. Suppose the price of a movie ticket is $15 and the price of a concert ticket is $90. Draw Henry's budget line. Your graph should include labels for your axes, and you should note the quantities at which the budget line meets each axis. Label Henry's budget line "BL" Next, suppose that the price of concert tickets drops to $75. Draw Henry's new budget line, and label it 'BL2'.Sketch a graph to illustarte your idea of each of the following relationships. Be sure to label both axes appropriatley. In each case explain uder what circumstances, if any, the curve should shift. 1. The amount of fertilizer added to an acre of land and the amount of corn grown on that land in one growing season 2. An automobile's horspower and it's gasoline mileage (in miles per gallon)
- Come up with two variables that, in your view, are related, indicate the name of these variables as well as why these variables are related; determine which variable is the dependent variable and which one is the independent variable. Draw a line graph by hand, labeling the vertical and horizontal axis consistent with your choice of variables. The line in the line graph has to represent, what, in your view, is the relationship between the two variables. Describe your graph verbally in your post (no need to upload the graph itself). Note:- • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. • Answer completely. • You will get up vote for sure.A heavy rainstorm damages this year’s crop of peanuts. The price of peanut butter increases. What will happen to the demand of jelly? Answer the 3 questions below related to this scenario. Complete sentences are not required. Please number each answer. 1. Will there be an increase or decrease? 2. Which way will the graph shift? 3. What is the determinant?Hello! The problem states: Given the estimated function, Equation 2.2, for coffee, Q=8.56-p-0.3p(s)+0.1Y, use algebra (or calculus) to show how the demand curve shifts as per capita income, Y, increases by $10,000 a year. Illustrate this shift in a diagram. Other parts of the chapter state $0.20/lb as the substituted value for p(s) for example problems. My question is: I need a value for p(s) (which is the price of sugar) to solve for this right? The problem doesn't explicitly state a value for me to input for p(s), but I am thinking to use 0.20 for p(s) to simplify the demand function. Thanks in advance!
- Using the model as prices goes up , so does demand , draw a graph that depicts total effect, income effect, substitution effect for rice among China's poor. Assume that price of rice rises.Suppose you observed that the consumption of organges increased sharply last year, however thet total consumer expenditure on oranges did not change. Did a supply shift, demand shift or both cause this? explain using graphsCourse: Introduction to Microeconomics Topic: Intertemporal Consumption DecisionsA consumer makes decision to consume in this year and next year. This year she has an income of M1 = $ 1.5 million and next year her income will be M2 = $ 2.75 million. Interest rate is 10%. Her intertemporal preferences are represented by function U(c1, c2) = c1*c2, whose intertemporal marginal rate of substitution is IMRS = c2/c1.a) Find and graph Budget Constraintb) Find and graph optimal consumption basket and indicate whether the consumer SAVES or BORROWS in the FIRST YEAR.c) Indicate whether following statement is true or false: "Any increase in interest rate will cause a decrease in consumer's welfare" Justify.d) If next year's income is maintained, how much would this year's income have to be for consumer to neither save nor borrow money at 10% interest rate?e) How much would interest rate have to be for consumer to consume exactly her initial endowment (M1 = $ 1.5 million and M2 = $ 2.75…
