If the consumer's income increases: O a the budget constraint shifts out and its slope does not change. Ob the budget constraint shifts out and its slope increases. Oc the budget constraint shifts in and its slope does not change. O d. the budget constraint shifts in and its slope increases.
Q: Examine the graph. Sellers who are unable to sell their good at a price floor of $6 may still be…
A: In a market, price floor refers to the minimum price that a seller will get for a good and services…
Q: O a. $35. Ob. $46. Oc$40. O d. $29. Quantity Private Value Private Cost External Cost (Units)…
A: So first we calculate Social cost = Private cost + external cost Surplus value = private value -…
Q: 1. Calculate Consumer Price Index in each year using 1988 as base year and compute the CPI inflation…
A: The formula for calculating the consumer price index: = cost of market basket in current yearcost…
Q: Suppose the demand for a product is given by P = 30-3Q. Also, the supply is given by P = 10 + Q. If…
A: Given Demand equation for a product: P=30-3Q .... (1) Supply equation for the product:…
Q: If the consumer's income increases: O a. the budget constraint shifts out and its slope does not…
A: Note: we as full-time experts are not allowed to provide handwritten solutions. You must have seen…
Q: Use the following table to calculate the price elasticity of supply for computers. Quantity Supplied…
A: Price elasticity of supply is measurement of the responsiveness to the supply of a good or service…
Q: The gains from specialization and trade are discussed in terms of production gains and consumption…
A: Write the formula to calculate the net gain or lose as follows: Net gains = Production /…
Q: Which of the following would impact the Natural Rate of Unemployment? Question 7 options: All…
A: Cycles in unemployment explain why unemployment rises during a slump and falls during an upturn. So,…
Q: •The demand function for a product is represented by the equation Qd = 20 - 2P and its supply…
A: We are given : Demand: Qd = 20 - 2Pd Supply: Qs = Ps- 4 Remark : Pd : Price which the consumer…
Q: production function model in which firm output in a particular industry depends on the amount of…
A: Linear Regression refers to the statistical analysis that statisticians use to predict the value of…
Q: Keynesia: Government expenditure 400 Exports 250 Autonomous imports 50 Autonomous consumption…
A:
Q: compared with a competitive market, a monopsonist will pay a ___ wage and hire workers. a) lower;…
A: monopsony, in monetary hypothesis, market circumstance in which there is just a single purchaser. An…
Q: If a consumer consumes two goods, A and B, and the price of A falls, then the income effect would…
A: The measure that depicts quantities of goods being demanded at various price levels by the…
Q: Multiple Choice and curve Will shift to the left as a result of: a decrease in business taxes.…
A: The rate of interest affects the investment demand curve. The investment is inversely related to the…
Q: If a consumer consumes two goods, A and B, and the price of A falls, then the substitution effect…
A: In the mentioned question we have been asked what will happen to goods purchase if the price of one…
Q: Suppose the untaxed market equilibrium pr and quantity in the home computer market are $850 and 10…
A: A deadweight loss means misfortune in economic effectiveness because of the disequilibrium of the…
Q: Price 2007 Quantity 2007 $5.00 $10.00 12 $2.00 200 -$5.00 200 50 Total 2007 Nominal GDP Price 2015…
A: Real GDP is a macroeconomic proportion of the worth of monetary result adapted to cost changes. This…
Q: You are a senior management position in a leading international funds management firm. Your Board of…
A: Markets refer to the place or platform that exists for the purpose of economic transactions. It…
Q: The CARES Act of 2020 increased disposable income by $600 billion. If consumers spent $400 billion…
A: Given Due to CARES act of 2020, increased disposable income ∆YD=$600 Due to increases in disposable…
Q: Look at the attached table. A. What are the Nash equilibrium to this game (if there are any)? B.…
A: Nash Equilibrium A player can achieve the desired outcome by continuing to their initial strategy,…
Q: Why is it needed to maintain Social Graces through certain unwritten guidelines that maintain the…
A: Social graces can be defined as a skill used for dealing with people and society. In order words it…
Q: Economics Was it ethical for Tesla to hire a PR firm to monitor its employees? Yes or No? Write a…
A:
Q: AVERAGE TOTAL COST (Dollars per bike) 640 560 480 400 320 240 160 80 0 0 100 200 300 400 QUANTITY…
A: Short-run is such a period in which at least one of the factors of production is fixed whereas the…
Q: Calculating Real GDP Please use the information in the tables to answer the following questions.…
A: Gross Domestic Product refers to the sum of all the expenditures done by the various agents in an…
Q: B. The indifference curves shown below are for Ali whose income per month is $1400. Using the…
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…
Q: Suppose that average incomes today were $53,468 and are expected to grow at 2.9% each year for the…
A: Given Today's Average income P =$53,468 Expected growth rate GE = 2.9% Growth rate if the policy is…
Q: What processes and steps can be took to compete with an MNC by a domestic rival company so that they…
A: Meaning of Market: The term market refers to the situation under which the producers or the…
Q: Some friends of yours have just had a child. Thinking ahead, and realizing the power of compound…
A: "since you have posted a question with multiple sub-parts, we will solve first three sub parts for…
Q: The table below shows nominal GDP, exports, and imports for the United States. Nominal GDP, Exports,…
A: Here, the given table provides information about the nominal GDP, imports and Exports of a country…
Q: STEADY AS SHE GOES AFFIL BALANCED BUDGET THE ECONOMY Reprinted with permission from The Detroit News…
A: Government’s budget depends on revenue and spending.
Q: Monopoly ceases if the demand for the good is Little flexibility. 0 O not flexible. Flexibility…
A: A monopoly market is one in which there is only one seller and no competition from other sellers.…
Q: A person wishes to have a future sum of $1,00,000 for his son’s education after 10 years from now.…
A: Given the future value = $100000 Number of years = 10 years Interest rate = 15%
Q: Identify the consequences of not planning following a business analysis approach to implement at a…
A: Business analysis approach Firms who are able to see new possibilities and adapt to them are more…
Q: A monopolist with constant average and marginal cost equal to 8 (AC = MC = 8) faces the demand Q =…
A: A monopolist maximizes profit where : Marginal Revenue = Marginal Cost Total Revenue =…
Q: How is the value of a flexible exchange rate determined? Question 10 options:…
A: Flexible exchange rates are those that have been based on the worldwide supply and demand of a given…
Q: What macro economics
A: Meaning of Economics: The term economics refers to the situation under which there remain…
Q: The Federal Reserve wants to increase the money supply by increasing the lending potential of…
A: The Federal Reserve is the central bank of the US that controls and manages the money supply in the…
Q: In Maldonia in 2019, checkable deposits owned by individuals and businesses were $1,635 billion; M1…
A: Given the information: Checkable deposits = $1635 billion M1 = $2857 billion Currency held by…
Q: The following table shows prices and quantities in the hypothetical economy of Lowlands for two…
A: Here, the given table provides information about the price and output produced in a two-time economy…
Q: We can produce widgets with two inputs – labour and capital. The two inputs are perfect substitutes.…
A:
Q: For the following demand function: Q(P) = 2015 - 31P Calculate the price where the quantity…
A: The price of the good and the quantity desired of the good have a negative connection, in accordance…
Q: Mark can work up to 80 hours each week at a pre-tax hourly wage of $20 but faces a constant 20…
A: The budget line is downward sloping, indicating a tradeoff between income earned and the amount of…
Q: 882 283 222 2 100 PRICE 90 80 70 60 50 40 30 20 MR MC Q-30 and P-301 Q-45 and P-45 Q-60 and P-30…
A: A benevolent social planner aims to maximise total surplus
Q: The Coffee Korner, a small cafe near campus, sells lattes for $3.00 and biscotti for $1.50 each.…
A: The cost of the next best option available which is forgone is opportunity cost.
Q: Interpret the conficient on female in the following regression: sleep-3549-166 totwrk +2.74 age…
A: Given Regression equation sleep=3549-166totwork+2.74 age-85.15 female+u^ ... (1) Sleep is a…
Q: s -2.5, the elasticity of demand for business computers is -.90, and the elasticity of supply or…
A: At the point when supply and demand are out of equilibrium, making a market inefficiency, a…
Q: There are three barrels filled with a mixture of two different acids given. The ratio of acids in…
A: Consider the two different acids are A and B. Barrels Acid A Acid B Total 1 2x x 3x 2 3y 2y…
Q: What is the present worth (to the nearest dollar) of a series of equal weekly payments of $2,000 if…
A: Given Weekly payment A =$2000 We have to calculate the present worth (a) r = 6% compounded…
Q: In a time of crisis where there is a pandemic, policymakers try to encourage economic activity by…
A: During pandemic situation , alomost every nation have been affected by the covid-19 and the…
Q: Suppose Alphonso’s town raises the price of bus tickets from $0.50 to $1 and the price of burgers…
A: Given pieces of information: Previous price of bus tickets = 0.5 New price of bus tickets = 1…
Hand written plz asap.... Fast plxzzzzzzzz
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Explain why individuals make Choices that are directly on the budget constraint, rather than inside the budget constraint DI outside it.The amount/limit of income a consumer has to spend on goods and services is known as O a budget constraint. wealth. O purchasing power. effective demand.a. Suppose Fiona’s income is $100 per week, which she allocates between chocolates and books. Chocolates cost $2 each. Books cost $10 each if she purchases between 1 and 5 books. If she purchases more than 5 books in a week, the price falls to $5 for the 6th book and all subsequent books. Draw the budget constraint. Is it possible that Fiona might have more than one utility-maximizing solution? b. Confirm that if a consumer’s utility function is described by U = 2X + Y, and prices are px = 2 and py = 1, there is no unique utility maximizing solution regardless of income level. What does this tell you about X and Y as commodities? (Hint: draw a graph showing a budget constraint and indifference curve using the information provided.)
- Columns 1 through 4 in the following table show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C, and D are, respectively, $18, $6, $4, and $24 and that Ricardo has an income of $106. a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility? b. How many dollars will Ricardo choose to save? c. Check your answers by substituting them into the algebraic statement of the utility-maximizing rule.True or false with reasoning 1)_______When an extra glass of wine is consumed, the total utility gained from the consumption changes by an amount of the marginal utility of all goods consumed. 2)_______Suppose that you consume two goods A and B, and that MUA/PA = 2 and MUB/PB = 4. With a given income and prices, the consumer will purchase more of good A and less of good B. 3)_______If you consume two goods, X and Y, and MUX > MUY, then you are willing to pay more for good X than for good Y.4 Assume that a person's utility over two goods is given by U(g1; g2) = g1 + ln g2. The price of good g1 is equal to p1 and the price of good g2 is p2. The total income of the individual is given by I. The marginal rate of substitution between g1 and g2 is given by 1/(1/g2). Then, the expressions for this person's (1) budget constraint, (2) budget line's slope (assume that, graphically, g1 is on the horizontal axis and g2 on the vertical axis), and (3) the person's demand function for g2 (that is, g2 as a function of price ratio) are respectively:
- 5. Consider a consumer whose utility function isu(x,y) = sqrt(xy) (MRS(x,y)=y/x)a. Assume the consumer has income $120 and initially faces the prices px = $1 and py = $1. Howmuch x and y would they buy? Draw the budget constraint and the demands. b. Next, suppose the price of x were to increase to $2. How much would they buy now? Draw thisin the same figure.c. Decompose the total effect of the price change on demand for x into the substitution effect and theincome effect. That is, determine precisely how much of the change is due to each of thecomponent effects. (Hint: See the lecture notes for the two properties that determine the locationof “z”, the reference point for distinguishing the income and substitution effects.)please only do: if you can teach explain each partc: what does it mean? can you show graphs: For these to be optimal choices with such preferences, the indifference curve through a must lie entirely on or above the budget line associated with (p, w), and simi- larly for r' for the budget line associated with (p', w'). how do you know this:Because each of these bundles lies below the other budget line, this implies that the indifference curves must cross, which is impossible. can you show graphs: note that (3,1) is a conver combination of x and x', so for conver preferences must be weakly preferred to x (the less preferred bundle between a and a'). But then the bundle (3,5/3) must be strictly preferred z, contradicting that is optimal given the initial budget setquestion 3 a Andre has a salary of $1000. He spends his entire budget on shoes and beers. The cost for a pair of shoes is $15 and the cost for can of beer is $25. - Construct Andre’s budget constraint (place) beers on the y-axis. - Suppose Andre’s salary rises by 25%. Also suppose that the price of shoes and beers each rise by 40%. Construct Andre’s new budget constraint. What is the difference between the new and old budget constraints? - Suppose that the price of beers fell from $25 per beer to $15. Construct Andre’s new budget constraint. What is the difference between the new and old budget constraints.
- Question 3 A. Andre has a salary of $1000. He spends his entire budget on shoes and beers. The cost for a pair of shoes is $15 and the cost for can of beer is $25. - Construct Andre’s budget constraint (place) beers on the y-axis. - Suppose Andre’s salary rises by 25%. Also suppose that the price of shoes and beers each rise by 40%. Construct Andre’s new budget constraint. What is the difference between the new and old budget constraints? - Suppose that the price of beers fell from $25 per beer to $15. Construct Andre’s new budget constraint. What is the difference between the new and old budget constraints. B. Explain the relationship between the budget constraint and indifference curve at consumer optimum.Currently, Paula is maximizing utility by purchasing 5 TV dinners (T) and 4 Lean Cuisine meals (L) each week. Graph Paula’s initial utility-maximizing choice. Suppose that the price of T rises by $1 and the price of L falls by $1.25. Can Paula still afford to buy her initial consumption choices? What do you know about her new budget constraint? Use your graph to show why Paula will choose to consume more L and less T given her new budget constraint. How do you know that her utility will increase? Some economists define the ‘‘substitution effect’’ of a price change to be the kind of change shown in part c. That is, the effect represents the change in consumption when the budget constraint rotates about the initial consumption bundle. Precisely how does this notion of a substitution effect differ from the one defined in the text? If the substitution effect were defined as in parts, how would you define ‘‘the income effect’’ to get a complete analysis of how a person responds to a…Columns 1 through 4 of the accompanying table show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C, and D are $18, $6, $4, and $24, respectively, and that Ricardo has an income of $105. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility? How many dollars will Ricardo choose to save? Check your answers by substituting them into the algebraic statement of the utility‑maximizing rule. In other words, show it works when using this rule.