Steve's utility function is U= (q, +4 92, where q, = veggie burgers per week and q, = packs of cigarettes per week. The price of a veggie burger is p,-$1.00. If Steve's optimal choice is (q,, q2) = (3,5), then the price of cigarrets is $
Q: Assume that l2t = 0.15% and that l = 0. If the one-year interest rate is 5% and the two-year…
A: Given Liquidity premium l2t=0.15% and l1t=0 One year interest rate it=5% Two-year interest rate…
Q: Assume an economy is initially operating at the natural rate of output. a. Draw an AD-AS model.…
A: AD and AS model is used to determine equilibrium real GDP in the economy
Q: Katie's Quilts is a small retailer of quilts and other bed linen products. Katie currently purchases…
A: The correct answer is given in the second step.
Q: What is the maximum revenue based on this price and quantity? Column 1 Column 2 Column 3 Column…
A: Here, the given table shows marginal revenue and total revenue at different quantity level with…
Q: Which of these is true about the Lorenz curve? a. allows us to rank all countries by the degree of…
A: In economics, there are different concepts used to explain or show the nature of economic variables,…
Q: The burden of a tax and the benefit of a subsidy falls mainly on consumers: O A. if the quantity…
A: Elasticity is the responsiveness of change in quantity due to change in price.
Q: machinery supplier is offering a certain machinery on a 10% down payment and the balance payable in…
A: There two alternative to buy the machinery - 1 .) Whole payment of 195,000 2 .) 10% down payment…
Q: O D. 500 utils
A:
Q: 5. Long Run Producer Surplus a. In the long run equilibrium of a perfectly competitive firm, fixed…
A: During the Long run production function all the factors are variables: Land Labor Capital All the…
Q: 6. Consider a good with a production process with fixed costs and constant marginal costs. Which of…
A: The answers are - (a) If marginal costs are zero the good is non -excludable (b) If marginal costs…
Q: Bastion owes Federico $100 for the concert ticket that Federico purchased for him. Federico owes…
A: A certificate of deposit is issued by a bank against the funds deposited at the bank. A promissory…
Q: 5. A city that is attempting to attract a professional football team is planning to build a new…
A: Answer is given below
Q: A). Other things equal, how would you expect the following shifts to affect a country's real…
A: In the international market, any change in the economic condition of the trading country will lead…
Q: Examine the balance sheet for a bank below: Assets Liabilities Reserves 600 000 Demand Deposits 5…
A: Money multiplier = 1/ reserve ratio Money multiplier = 1/ 0.05 Money multiplier = 20.
Q: What likely occurred during 2018 if nominal GDP did not change and real GDP decreased, relative to…
A: Real GDP is the market value of final goods and services produced in the economy within a given…
Q: Which one of the following statements is false? O A. Liquidity preference model suggests that when…
A: The answer is - D. Liquidity preference model suggests that higher GDP growth leads to higher…
Q: Break-Even Analysis Jesaki Publishing is planning for a new novel, and figures fixed costs…
A: In business, a break-even point is reached when total costs and total revenues for a certain…
Q: Wu's job pays $17/hour, and requires him to be at work at least 29 hours/week. He is allowed to work…
A: Given: Payment per hour=$17 Minimum work hours=$29 per week Weekly endowment=$163
Q: If Germany has a comparative advantage over England in the production of heavy tractors, this…
A: Comparative Advantage theory is an international trade theory given by David Ricardo.
Q: What is the effective cost of a combination of an 80% mortgage at 3% and a second mortgage (for 10%…
A: The interest rate is the amount a lender charges a borrower and is a percentage of the principal—the…
Q: The Consumer Price Index: O Reflects the prices of all goods and services produced domestically O…
A: CPI is the Consumer Price Index. This index tells us about the inflation and deflation.
Q: Surplus-value creates a further advantage for capitalists because: A. Capitalists are able to…
A: as we know that labour and capital are two important factor in production . labour gets wage and…
Q: How do gains in income inequality influence economic growth and expenditure rates?
A: When income inequality rises, economic growth falls.
Q: explain the economic meaning of the HR business cycle based on the give-to-get economic duality?
A: The cyclical movement of an economy as it swings from growth to recession and again is known as an…
Q: The expectations theory is successful in explaining: I. Why the term structure of interest rates…
A: By assuming no arbitrage opportunity and thus stating that two investment strategies stretched over…
Q: Which of the following is true about BRIC countries: O a. There is low prospects of growth O b. To…
A: BRICS is an abbreviation for the strong gathering of the world's driving developing business sector…
Q: 1. Explain the effects of low price-guarantee on the price. 2. What do you understand by…
A: Ans 1..... Low pricè guaràntee is a condition in which a manufacturer offers a price equal to or…
Q: A man applied for a car loan in a local financing bank which charges a rate of interest of 18%.…
A: Bank charges a rate of interest i = 18% The interest amount is deducted at the time the money is…
Q: A production possibilities table for two products, Consumption goods and Capital goods, is found…
A: The curve that depicts various quantities of goods and services being produced using the resources…
Q: Use the above data to answer the following questions. Total number of persons frictionally…
A: when people leave their old jobs but haven't yet found new ones or currently looking for jobs, are…
Q: If the marginal propensity to save is low a. The spending multiplier will be reduced b.…
A: In an economy, the marginal propensity to save refers to the amount of additional income that is…
Q: he college tuition is expected to increase with an average of 5% per year for the next 5 years. The…
A: We have given a geometric gradient series cash flow, Value of A1=P45,000 % increase in the tuition…
Q: Assume Country X has an electricity market with supply and demand being given below: Qo--Po + 200 Os…
A: Demand = -P + 200 Supply = -3P + 300 Note:- Since you have posted multiple subparts, as per the…
Q: Consider the following game A 1.0 2.0 p.0 3.3 3.4 0,2 2.4 5. 2 How many Nash equilibria in pure…
A: To find the nash equilibrium strategies using the best response method where we underline the…
Q: Based only on these data, provide quantitative estimates of the likely pre- and postmerger prices in…
A: The correct answer is given in the second step.
Q: Q5-) A regional infrastructure building and maintenance contractor must decide to buy a new comp…
A: *Answer: *a Without adjusting for inflation. Given real rate of return is 5%. Now, let us…
Q: Please indicate whether you agree with the statement given below and explain why? According to…
A: The Williamson tradeoff model basically refers to a theoretical model in industrial organisation…
Q: 4. An economist produced the following Lorenz curves for the current income distribution and the…
A:
Q: 1. Malthus stated that the poor would always remain poor since ________. a. there are not enough…
A: 1) Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a…
Q: Chartered banks increase the money supply by: Select one: pay withdrawals to depositors. O a. O b.…
A: Banks acts as intermediaries and play an important role to create money in the economy. If these…
Q: 19 of 38 All eise equal, an increase in the interest rate should result in OA higher bond prices OB…
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: pls explain if marginal product function (i.) and (ii) are either convex or concave? what is their…
A:
Q: Consider the following bivariate linear regression model y = a+3x+u. Suppose that E[u|x] # 0 and…
A: x : Endogenous variable z: Instrument for x The IV estimate of B = cov(y, z)cov(x, z) = 0.50.5 = 1
Q: An assembly operation at a software company now requires $100,000 per year in labor costs. A robot…
A: Capitalized cost refers to the cost that is assed to the cost for a fixed asset in a balance sheet…
Q: A shipyard sales are $ 96531 when it sells 10 boats per year, and $ 110066 when it sells 11. What is…
A: Marginal revenue is the change in total revenue due to the sale of one additional unit. the marginal…
Q: Market Share Firm ( % ) А 25 В 22 18 16 E 15 F 4 Suppose that firms B and D in this table merged…
A: In a market, researchers use various economic tools and methods to understand the market condition…
Q: 1. The Gini coefficient gives a measure regarding ___________. a. the level of relative inequality…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: We are given a utility function in which a household lives for just one period. hl+1/e u(c, h) = c -…
A: * SOLUTION :- Given that ,
Q: Jumbo Enterprises is the sole producer of jumbo jets in the economy. Demand for jets is given by…
A:
Q: Suppose you as a business person find that the price of your product is less than minimum average…
A: The shutdown point is defined as the intersection of the average variable cost curve and the…
Step by step
Solved in 2 steps
- Marina decides to purchase a ring made from an alloy composed exclusively of gold (G) and titanium (T). The price of gold is $60 per gram, and the price of titanium is $30 per gram. Her total budget for the ring is $600. Her utility function is given by U(G,T) =GT. Suppose the price of titanium falls to $20 per gram. At the final basket, the optimal amount of titanium is（）grams.You have £20 per week to spend, and two possible uses for this money: telephoning friends back home, and drinking coffee. Each hour of phoning costs £2, and each cup of coffee costs £1. Your utility function is U(X,Y) = XY, where X is the hours of phoning you do, and Y the number of cups of coffee you drink. What are your optimal choices? What is the resulting utility level? You can use the standard result on the constrained maximization of such a function, but must state it clearly. Now suppose the price of telephone calls drops to £1 per hour. What are your optimal choices? What is the resulting utility level? How much income per week will enable you to achieve the same quantities at the new prices as the ones you chose before? What income will enable you to attain the same utility as you did before? Comment on your answer in the context of equivalent variation and compensating variation.. Ceja has utility function U=A2*B2 , where A equals the number of apples she eats each week, while B is the number of bananas she eats each week. Ceja has $20 to spend on fruit each week. The price of an apple is $1, while the price of a banana is $0.25. Find out the combination of Apples and Bananas that maximize Ceja’ satisfaction
- Ceja has utility function U=A2*B2 , where A equals the number of apples she eats each week, while B is the number of bananas she eats each week. Ceja has $20 to spend on fruit each week. The price of an apple is $1, while the price of a banana is $0.25. Find out the combination of Apples and Bananas that maximize Ceja’s satisfaction. If price of Banana is increased by $.25, what will be the new combination of A and B that would maximize her utility? Show graphically and drive the demand curve for BananasJane receives utility from days spent traveling on vacation domestically (D) and days spent traveling on vacation in a foreign country (F), as given by the utility function U(D,F) = 10DF. In addition, the price of a day spent traveling domestically is $100, the price of a day spent traveling in a foreign country is $400, and Jane’s annual travel budget is $4000. Suppose F is on the horizontal axis and D is on the vertical axis. Jane's marginal rate of substitution between F and D is equal to 10 1 F/D D/FConsider the following infinite-horizon utility maximization problem
- You have k20 per week to spend and two possible uses for the money: telephoning friends back home and drinking coffee. Each Hour of phoning costs k2 and each cup of coffee costs k1. Your utility function is U(X,Y)=XY,where X is the hours of phoning you do and Y the number of cups of coffee you drink. What are your optimal choices? What is the resulting utility levels? You can use the standard result on the constrained maximization of such a function, but must state in clearlyWhich of the following statements is true? Group of answer choices If the more is better assumption is satisfied, the marginal utility from consuming the second unit must be greater than the marginal utility from consuming the first unit. Marginal utility is the slope of total utility. If the more is better assumption is satisfied, total utility will increase as consumption increases. Marginal utility may be negative.Based on several observations, people at older ages tend to buy more luxurious products than when they were younger. Does this mean that diminishing marginal utility of money declines as people age?
- Prove that the utility maximization conditions as suggested by the “marginal utility framework” are consistent with the “indifference curves approach”.Evaluate the one specific law which states that the marginal utility of a good orservice declines as more of the good or service is consumed in a specific timeperiod.A consumer currently spends a given budget on two goods, X and Y, in such quantities that the marginal utility of X is 15 and the marginal utility of Y is 8. The unit price of X is $3 and the unit price of Y is $2. The utility-maximizing rule suggests that this consumer should Multiple Choice a. decrease consumption of product X and increase consumption of product Y. b. increase consumption of product X and increase consumption of product Y. c. decrease consumption of product Y and increase consumption of product X. d. stick with the current consumption mix because it yields maximum utility.
