Question 2: Represent the preferences of the following people graphically: Case 1: Mary likes milk which is sold in either one-gallon container (call this good x) or a half gallon-container (call this good y). She only cares about the total amount of milk he can get.
Q: After graduating from high school, Quinn Thompson decided to enroll in a 2 year program at the local…
A: Opportunity cost is the cost of next best alternative use. In simple words, it is the loss which a…
Q: How does commodity subsitution bias influence the CPI? The CPI ____ consumer subisuttions between…
A: Introduction Consumer price index measure the retail prices of goods and services. It is used to…
Q: The marginal cost of producing one more unit at a given quantity can be inferred by- A: is given by…
A: The Marginal cost of production refers to the change in the total cost of production when one…
Q: The number working full-time is 400 The number doing volunteer work is 350 The number working…
A: Given information: Total population = 3000Adult population = 1850Volunteer worker = 350Military…
Q: Draw a circular-flow diagram. Identify the parts of the model that correspond to the flow of goods…
A: The circular flow diagram refers to the diagram that explains the relationship between firms and…
Q: Does the CPI’s use of a representative basket of goods imply that the CPI will accurately measure…
A: CPI is consumer price index , it measures the change in average price of the basket of goods. It…
Q: In general, supply and demand are often in elastic in the short run, so that shifts in either demand…
A: Elasticity is an economic idea used to measure the change in the aggregate quantity demanded of a…
Q: What information is given by the CPI? The CPI tells us _______. A. the price level in a given…
A: The general rise in the price of goods and services during a period of time with the fall in the…
Q: QUESTION 4 (a) Find an expression for the profit function given the demand function and the average…
A: At break even point, the firm neither earns a profit nor a loss. Loss occurs when the cost of a firm…
Q: Al and Bob play a prisoner's dilemma for three times. If one defects and the other cooperates, the…
A: Payoff of the above game are in following manner -
Q: 1. What is a production possibility curve and explain points of efficiency, inefficiency, and not…
A: "Since you have asked multiple questions ,we will solve first question for you.If you want specific…
Q: What is a production possibility curve and explain points of efficiency, inefficiency, and not…
A: Production possibility curve refers to the curve which represents the set of combinations which…
Q: What type of bias might be introduced if the CPI only represents the change in the price of a gallon…
A: CPI or consumer price index measures the change in the price of basket of goods over a period of…
Q: The explicit cost of production equals: a. economic cost minus opportunity cost. b. opportunity…
A: Explicit cost is the actual monetary expenditure incurred during the production process Implicit…
Q: xplain the Global Financial Crisis.
A: The mid-2007 to early-2009 era of high stress in the world's banking institutions and financial…
Q: Jess wishes to provide P4,000 for his daughter on her 21st birthday. How much should she deposit…
A: We use the formula to calculate the value: Future Value = P x (1+r)n - 1r
Q: The nominal interest rate is 7 percent and the inflation rate is 2 percent. What is the real…
A: The real interest rate is adjusted for removing the effects of inflation.
Q: 2. Which point is inefficient?* B O A&B O A&D E Good X
A: Since you have posted multiple questions, as per the guidelines we can solve only one question per…
Q: Project Repair highways Build new highways Build a new bridge Build a new tunnel Expand existing…
A: Here, information regarding cost and benefit from various projects are given for the government to…
Q: The mercantilists argued that a. Control of the money supply is the most important policy lever…
A: During the era of mercantilism, the global supply was finite. During that time, people majorly used…
Q: Find the present worth of a future payments of P70,000.00 to be made in 10 years with an interest of…
A: Given information: Future value (F): P70,000.00 Interest rate (r): 12% Time period (n): 10 years…
Q: Using the graph, complete the table that follows by indicating whether each statement is true or…
A: The elasticity of supply measures the responsiveness of change in quantity supply to change in…
Q: Retirement is a fulfillment of the life you built for yourself and your family, and retirement…
A: The proportion of the population that is employed or actively seeking employment is known as the…
Q: 2. Explain the law of increasing opportunity cost in a production possibility curve. What is the…
A: As per honor code, we’ll answer only one question at a time, we have answered the question 2. Please…
Q: do you think countries with distinctively different cultural, historical, and economic histories can…
A: A growing emphasis on regional integration and the creation of diverse trade blocs that support free…
Q: Suppose that Darnell and Eleanor are the only suppliers of pizza slices in a particular market. The…
A: Supply curve is the locus of points which determine the amount of goods that would be supplied by…
Q: Allison will graduate from high school next June. She has ranked her three possible post- graduation…
A: Suppose a person have 5 available options to choose from and he chooses a particular option, now the…
Q: A tobacco company is interested in hiring a salesperson to promote smoking cigarettes in nightclubs.…
A: An individual will consider the expected value of events when faced with uncertainty. They will also…
Q: -A mechanical engineer borrowed the amount of P10,000.00 for 80 days at 12% per annum simple…
A: Hi! Thank you for the question as per the honour code, we’ll answer the first question since the…
Q: 14. Cournot Oligopoly Problem 2 - heterogeneous costs duopoly Suppose the following: • Inverse…
A: Given information P=24-4Q Two firms are available in the market. MC1=C1 fixed cost=F1 MC2=C2 and…
Q: Give examples and definitions of how these economic terms are used: (Simple definitions) -factory…
A: Since you have posted a question with multiple sub parts, we will solve first three subparts for…
Q: Breakfast cereal is produced by "Healthy Morning," and let's assume that it has a crowded market.…
A: Total revenue is calculated by multiplying the cost of an item or service by its quantity. The…
Q: Prepare a list of examples for the 3 sectors of economy. (Format is provided below) Sectors…
A: Economic activities are human activities that generate income. The three major categories of…
Q: 3. The tag price of a certain commodity is for 100 days. If paid in 31 days, there is a 3% discount.…
A:
Q: Our example is a game in which two firms compete through their choice of locations. Suppose that two…
A: Given information There are 2 firms: Firm A and Firm B There are 6 towns : 1,2,3,4,5 and 6 The…
Q: 5. What are economic benefits of using biodegradable plates? Explain.?.
A: We know that Biodegradable plates are substitutes for plastic plates. The reason biodegradable…
Q: SESSION 1.2: SELF-ASSESSMENT EXERCISE 1. Briefly explain the use of graphs as a way to represent…
A: Graphs helps us to analyze the type of relationships between 2 variables. Between 2 economic…
Q: A $450,000.00 investment is made, to be followed by P250,000.00 in annual payments for three years.…
A: Given The initial amount of money invested P=450,000 Annual payment received A= 250,000 Number of…
Q: The price of a brand-name laptop is $1,000 in 2018 and $1,100 in 2019. How could this price rise…
A: Here, it is given that a brand-name laptop has a price of $1,000 in 2018 and $1,100 in 2019. It…
Q: Consider the market for corn. Suppose that right now, the equilibrium price is considered “too low”…
A: Price floor is the established minimum price for a commodity below which is not allowed to fall in a…
Q: In year zero, you invest P10,000.00 in a 15% security for 5 years. During that time, the average…
A: The application of economic principles and calculations to engineering projects is known as…
Q: max II₁ = A₂K@NwNt - rt K₁ K>0, N₁20
A: Given profit function ∏t=AtKtαLt1-α-wtNt-rtKt ..... (1) We have to find first-order…
Q: Assignment 1 Draw a demand curve for economics classes at HCCC, showing the trade-off between…
A: In the free market, equilibrium point is determined by the forces of the demand and supply. The…
Q: Venus Flycatcher Company sells exotic plants and is trying to decide which of two hybrid plants to…
A: We must determine the highest price customers would pay for an extremely accurate demand forecast…
Q: I am having difficulty understanding the concepts in this problem. C
A: Law of diminishing returns: It refers to an economic principle under which when a firm increases its…
Q: 14. Cournot Oligopoly Problem 2 - heterogeneous costs duopoly Suppose the following: • Inverse…
A: Dear Student as you have posted multiple subparts in the question but as per the policies and…
Q: A consumer of two goods has indirect utility v(p, w) = P₁ + P₂ (a) Find the indirect money-metric…
A: The indirect money metric utility function is the minimum cost of purchasing bundles of goods at…
Q: 4. ) James' income was $67,000 in 2010, $72,000 in 2014, and $78,000 in 2017. The Canadian CPI was…
A: Given The below table shows that James' income and CPI in year 2010, 2014 and 2017 Year Jame's…
Q: Advertising and Corporate Clusters Consider corporations that use advertising firms to develop…
A: When the economy is operating at its maximum potential and prices are adjusted to reflect changes in…
Q: Compare the major differences between relative income, life-cycle and permanent income hypotheses of…
A: The term “income” normally implies to the amount of money, property, and other transfers of value…
case 1,2,3
Step by step
Solved in 4 steps with 3 images
- You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the following table. If your income is $9 and the prices of X and Y are $2 and $1, respectively, what quantities of each will you purchase to maximize utility? What total utility will you realize? Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase? Using the two prices and quantities for X, derive a demand schedule (a table showing prices and quantities demanded) for X.Exhibit 1 Total Utility for Hamburgers, Fries, and CokesTotal Utility from Hamburgers Total Utility from Fries Total Utility from Coke 1 hamburger (100 utils) 1 order of fries (30 utils) 1 Coke (40 utils) 2 hamburgers (180 utils) 2 orders of fries (50 utils) 2 Cokes (60 utils) 3 hamburgers (240 utils) 3 orders of fries (60 utils) 3 Cokes (70 utils) 3- In Exhibit1 assume that the price of hamburgers is $2 each, fries cost 50 cents each, and Cokes cost $1 each. What is the marginal utility of having a second order of fries? In Exhibit 1, assume that the price of hamburgers is $2 each, fries cost 50 cents each, and Cokes cost $1 each. Suppose the consumer has $6 to spend on hamburgers, fries, and Cokes. Which of the following meals gives the consumer the mostutility? Given a…You are choosing between two goods, X and Y, and your marginal utility from each is shown in the following table. Units of X MUx Units of Y MUy 1 10 1 8 2 8 2 7 3 6 3 6 4 4 4 5 5 3 5 4 6 2 6 3 a. If your income is $9 and the prices of X and Y are $2 and $1, respectively, what quantities of each will you purchase to maximize utility? ______units of X and ______units of Y b. What total utility will you realize? ______utils c. Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase? _____units of X and ______units of Y d. Using the two prices and quantities for X, complete the table to derive the demand schedule (a table showing prices and quantities demanded) for X. Instructions: Start with the highest price first Price of X Quantity Demanded of X $ $
- John consumes 20 units of food and 24 units of clothing. If food is an inferior good, will John be indifferent between receiving a $24 gift certificate at a clothing store and receiving $24 in cash? Explain and show graphically.For Gil, apples and pears are perfect substitutes; one apple is equivalent to one pear. Suppose, Gil has $15.00 per week to spend on these commodities and the price of an apple is $0.75 and the price of a pear is $1.00. a. What combination of apples and pears will Gil purchase to maximize his utility? b. Assume the price of apples increases to $1.25, while Gil's budget and the price of a pear remain unchanged. What combination of apples and pears will Gil purchase given this price change?INTERMEDIATE MICROECONOMICS 2. Clearly describe substitution effect and income effect for a fall in price for a normal good and an inferior good
- 1 . Assume the budget constraint and the indifference curves are both linear. Assume the consumer is willing to tradeoff 1 of good X for 1 of good Y. If the relative price of one additional good X is giving up 1/2 of good Y, then the optimal bundle of the two goods is? Assume the budget constraint and the indifference curves are both linear. Assume the consumer is willing to tradeoff 1 of good X for 1 of good Y. If the relative price of one additional good X is giving up 1/2 of good Y, then the optimal bundle of the two goods is? Assume the government imposes an effective minimum wage (i.e., one above the equilibrium wage rate that would otherwise prevail in that market). Our supply and demand analysis implies? If preferences for pizza increase and the price of labor to produce pizza decreases, the equilibrium quantity of pizza will ____ and the equilibrium price of pizza will _____ .? Assume an intertemporal budget constraint that shows how consumption can be traded off between…Suppose that Tom has preferences represented by u left parenthesis x comma y right parenthesis equals x to the power of 1 fourth end exponent y to the power of 2 over 3 end exponent. Initially, p subscript x equals 2 comma space p subscript y equals 4 comma space a n d space m equals 220. If the price of good x rises to 4, what is the substitution effect on x? -8.45 -6.3 -10.91 -12.21 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.Question 3 Mrs. Griffiths earns $5000 a week and spends her entire income on dresses and handbags, since these are the only two items that provide her utility. Furthermore, Mrs. Griffiths insists that for every dress she buys, she must also buy a handbag. - What is the algebraic equation for Mrs. Griffiths budget constraint if dresses cost $25 each and handbags cost $14 each? How many of each good will she buy and represent this on a budget line with handbags on the horizontal axis. - Draw an indifference curve showing the optimum choice. Label the optimum as point A. What would be the marginal rate of substitution at the point that corresponds to the optimal consumption choice? Interpret the marginal rate of substitution. - Suppose the price of a dresses increases to $200 and income decreases to $4200. What is the new algebraic equation for Mrs. Griffiths budget constraint? Show the impact of the new budget line relative to the original budget line. - What would be the new marginal…
- In the below figure, a consumer is initially in equilibrium at point C. The consumer’s income is $400, and the budget line through point C is given by $400 = $100X + $200Y. When the consumer is given a $100 gift certificate that is good only at store X, she moves to a new equilibrium at point D. Determine the prices of goods Xand Y.Price of X: $ Price of Y: $ b. How many units of product Ycould be purchased at point A?c. How many units of product X could be purchased at point E?d. How many units of product X could be purchased at point B?e. How many units of product X could be purchased at point F?f. Based on this consumer’s preferences, rank bundles A, B, C, and D in order from most preferred to least preferred. (Click to select) D, B, C, A D, C, A, B C, A, B, D A, B, C, D g. Is product X a normal or an inferior good? (Click to select) Normal InferiorI am studying for a midterm and would like help explaining the questions. Suppose Craig considers oranges and grapefruits to be perfect substitutes. Craig is willing to trade three (3) oranges for one (1) grapefruit. Craig has $24 to spend on oranges and grapefruits, and the price of oranges is PO = $1.00, and the price of grapefruits is PG = $2.00. On a graph, draw Craig’s Budget Constraint, identify Craig’s optimal bundle, and draw the Indifference Curve that goes through that bundle. Please put the quantity of oranges (O) on the vertical axis, and the quantity of grapefruits (G) on the horizontal axis. Make sure your graph is accurate and properly labeled and be sure to clearly indicate which is Craig’s Budget Constraint and which is Craig’s Indifference Curve.In the following figure, a consumer is initially in equilibrium at point C. The consumer’s income is $400, and the budget line through point C is given by $400 = $100X + $200Y. When the consumer is given a $100 gift certificate that is good only at store X, she moves to a new equilibrium at point D. a. Determine the prices of goods X and Y. b. How many units of product Y could be purchased at point A? c. How many units of product X could be purchased at point E? d. How many units of product X could be purchased at point B? e. How many units of product X could be purchased at point F? f. Based on this consumer’s preferences, rank bundles A, B, C, and D in order from most preferred to least preferred. g. Is product X a normal or an inferior good?
