Represent the following data by rectangular diagram showing percentage of Income spent by two families on different items of expenditure. Family-budgets of two families Items of Family A Income Rs. 80 Family B Income Rs. 40 Expenditure Actual Expenses Actual Expenses Food Rs. 32 Rs. 20 Clothing Shelter Rs. 20 Rs. 8 Rs. 8 Rs. 4 Fuel and Light Rs. 4 Rs. 2 Miscellaneous Rs. 16 Rs. 6 Total Rs. 80 Rs. 40

Represent the following data by rectangular diagram showing percentage of Income spent by two families on different items of expenditure. Family-budgets of two families Items of Family A Income Rs. 80 Family B Income Rs. 40 Expenditure Actual Expenses Actual Expenses Food Rs. 32 Rs. 20 Clothing Shelter Rs. 20 Rs. 8 Rs. 8 Rs. 4 Fuel and Light Rs. 4 Rs. 2 Miscellaneous Rs. 16 Rs. 6 Total Rs. 80 Rs. 40

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 4SCQ: Edna is living in a retirement home where home where most of her needs are taken care of, but she...

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Eren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Calculate for the equivalent variation (EV) for the price change.
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Eren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Suppose that the Department of Welfare wants to know how much should begiven to Eren to offset his change un utility due to the price increase of an expensivemeal. Calculate the compensative variation (CV).
24. Given this diagram, what is the simple income multipier? a) 1/2 b) 2 c) 10 d) 70 e) 80 f) 100
Eren’s two main hobbies are taking vacations overseas (V) and eating expensive meals (M). His utility function is given as: U(V,M) = V^2MLast year, the average price of taking a vacation overseas was US$200 and the average price of an expensive meal is $50. However, due to supply problems in Onions, the average price of an expensive meal rose to $75. The average price of a vacation did not change. His income, which is $1500, did not change. Suppose that the Department of Welfare wants to know how much should be given to Eren to offset his change un utility due to the price increase of an expensive meal. Calculate the compensative variation (CV).
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