Regan's utility function for toothpaste (good x) and other stuff (good y) is u(x, y) = ln x + y. Assume that py = 1. Let M be her income. Derive her demand function for toothpaste. Is toothpaste a normal or an inferior good for Regan? Graph the Engel curve for px = 1.

Q: A man bought an equipment costing P30000 payable in 12 quarterly payments, each installment payable…

A: In an account or investment where the interest earned is also reinvested, quarterly compounding…

Q: Explain cost and revenue synergy by taking an example of a recent M&A that happened across the…

A: Cost synergy is the anticipated reduction in operational expenses following the merging of two…

Q: LRAS) for a hypothetical economy. Initially, the expected price level is equal to the actual price…

A: The SRAS curve demonstrates that the amount of real GDP that will be generated in an economy…

Q: 2. () Budget line 1: Wages are $12 per hour. No income tax. Draw budget line 1. (ii) Budget line 2:…

A: Utility maximizing condition is MUr / w = MUcWhere MUr = Marginal utility from leisure,w = Wage…

Q: As the MPC rises, the multiplier     falls     does not change     increases     falls by .05…

A: MPC is the marginal propensity to consume which is the percentage change in income spent on…

Q: b. Which of the following are necessary conditions for third-degre Instructions: In order to receive…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Consider the economy of Citronia, where citizens consume only oranges. Assume that oranges are…

A: The measure that depicts the charges that are levied by government on goods and services being the…

Q: a. problem? Price level (GDP deflator, 1996-100) LAS 120 EX 110 100 130 8 0 SAS 9.0 9.5 10.0 10.5…

A: Introduction This is the situation of long run macroeconomic equilibrium. It will occur at the price…

Q: A city is spending $19.3 million on a new sewage system. The expected life of the system is 40…

A: A cost or expenditure is capitalized when it is recorded on the balance sheet with the intention of…

Q: Suppose that a perfectly competitive industry consists of 240 firms and fixed cost of an individual…

A: The competitive market consists of many buyers and sellers. All sellers have identical product.…

Q: 4. (If P = 2 and Y= 1000, then which of the following pairs of values are possible? A. M = $500, V =…

A: From the quantity theory of money  The equation of exchange is MV= PY  Where M is money supply, V is…

Q: The Mamas and the Papas, a monopolist, faces a constant marginal cost of $3 of producing cashews. If…

A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in…

Q: What is the effect of a rise in the income tax on interest income? A rise in the income tax on…

A: Interest income is the sum you procure from various monetary items, records and speculations. It…

Q: How and why does the deadweight loss change with the elasticity of the product? Illustrate your…

A: An deadweight misfortune is an expense for society made by market failure, which happens when…

Q: $ interest rate is 10%. Euro interest rate is 5%. Spot exchange rate is 2$/euro. Forward exchange…

A: The forward conversion standard is the pace of trade, settled upon now, for an unfamiliar trade…

Q: Question S An auto-repair shop faces the following weekly costs: rent, $800; labour, $500 per…

A: "Every production process is associated with total costs. In the short run some costs are fixed…

Q: Which one is the profit maximizing quantity and which one is the profit maximizing price? And how…

A: Profit = Total Revenue - Total Cost Total Revenue = Price*Quantity Demand Function : Q = 9006 - 158P…

Q: EasyTax markets both a deluxe and a standard version of its software. The deluxe version contains…

A: A consumer will buy the product only when the price is equal to or less than the willingness to pay.…

Q: 4    You quit your job as an analyst making $50,000. You then take your $500,000 in savings and…

A: An economic profit or loss is the distinction between the revenue received from the sale of an…

Q: 12

A: Economic growth refers to the increase in the real value of total output generated by an economy…

Q: The Competitive Equilibrium Model—Deriving Supply] Negar owns a trendy and sustainable shoe factory.…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Which is the best example of human capital     Roads, bridges and other infrastructure…

A: The total of a person's knowledge, abilities, experience, and social traits that go into producing…

Q: Which of the following is NOT characteristic of a capitalist economy? Group of answer choices…

A: The activities that are related to production, sale, consumption and exchange of resources between…

Q: ) Consider a country in which three goods (A, B, and C) are produced. The following table shows…

A: Given  Base year = year 1 We have to calculate the GDP deflator between year 1 and year 2 From the…

Q: @0 (3) (d) 9. C I a foodien 6. Troy buys a sound system priced at $8,820.00 but paid $9,702.00 with…

A: It is given that the price of the product is $8,820.00 and the consumer purchases the commodity at…

Q: Which of the following policy combinations would cause a rise in the government budget deficit?…

A: Government budget deficit depends on how much government is spending and how much it is earning.

Q: 1. Measuring employment, unemployment, and labor force participation Consider a small economy…

A: People who are working or has a job are considered employed. People who are actively looking for a…

Q: Are carbon prices working? Economists say that raising the cost of burning coal, oil, and gas is a…

A: The cost of missed opportunities is the benefit that might have been obtained from an alternative…

Q: Question 12 Under which of the following two scenarios would demand be more elastic? Explain. (a)…

A: Demand elasticity is the degree to which demand changes in response to changes in other economic…

Q: Online the timing and tailoring of prices to specific models of products is the key to successful…

A: Since there are multiple questions, I am providing the answer to the first question. Price…

Q: Question II What it will be the value of X that will make the present value equals to 0 at i=8%? 100…

A: Cash flow diagram diagram represents the movement of cash inflow and cash outflow within a firm.…

Q: ould you please answer this statement from the perspective of 'it depends': If a start-up does not…

A: Break even point is the point at which the firm neither makes the profit nor makes the loss. At the…

Q: A startup is considering buying a $295,000 piece of equipment. If it purchases the equipment, it…

A: Given information Initial investment= $295000---- by taking a loan Interest rate for repayment of…

Q: We are at time t. Assume that the growth rate of the economy is 1% (g = 0.01) and that the real…

A: A debt ratio calculates a company's leverage by comparing its total debt to its total assets.Since…

Q: True or False: Suppose you are advising the Egg Farmers of Canada on changes in the egg market.…

A: Given information: The current price of eggs is $3 per dozen, and the quantity demanded is 2.5…

Q: On any given day, banks with insufficient reserves can borrow from banks with excess reserves. The…

A: The term "excess reserves" refers to the sum held or deposited with the major or central regulatory…

Q: Economics In one company it was calculated that producing 20 units 7 years ago would cost the…

A: Introduction Cost capacity equations also known as sizing model. Capacity cost is an expenditure or…

Q: Suppose that companies in US can manufacture, using one year of labor, 10 units of machinery and 200…

A: Trade is vital to finishing worldwide neediness. Nations that are available to worldwide exchange…

Q: 12. Whats a possible explanation for the variations in unemployment over time and the variation in…

A: Unemployment: The situation when a capable person is willing to work and searching for a job but was…

Q: On 26 May 2021 it cost $1.41 (USD) to buy one British Pound, while the 10-year British Government…

A: Exchange Rate refers to the value of another currency that a unit of currency can be converted into.…

Q: Assume that you are a rational person and that you visit a grocery store to buy bananas. Use the…

A: The rational consumer refers to the consumer who wants to maximize utility out of money spent on the…

Q: Which of the following statements is/are not true (I) The area below actual price and above demand…

A: The difference between what a customer is prepared to pay and what they actually spent for a product…

Q: An office supplies retailer orders staplers (among other products) from the manufacturer. The annual…

A: Keeping unsold items in storage results in holding charges.The price of ruined or damaged items is…

Q: Q7. The production function is y=L¹/aK¹/B. $12. The price of the output is $100, w = $15, and r=; a.…

A: Introduction We have given a production function. Optimal level of input can be achieved at where…

Q: Q.3.3 Explain the steps of the motivation process and how it applied to John.

A: Motivation: It is a process where people behave in a way that helps the business to achieve its…

Q: Finance What happens to the value of the dollar if the bank of japan increase its money supply and…

A: When an open economy changes its money supply and interest rate, it will have a significant impact…

Q: A person who is lending money o S or B A person receiving a fixed income S or B A person with money…

A: High inflation makes some people worse off and some people better off.

Q: Q40 If the unemployment rate in 2019 was 5% and was 6% in 2020. The Philips curve function is in the…

A: The Philips curve establishes the inverse relationship between the inflation rate and the…

Q: n order to create an endowment, which pays $100,000 per year, forever, how much must be set aside…

A: Given the information: Annual payment = $100000 Interest rate = 10%

Q: X The cameras in flagship smartphones like the Samsung Galaxy S20 Ultra and Google Pixel 5 are…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…