Suppose Anne has preferences that can be represented by the utility function u(x₁, x₂)=√√₁ + x₂. She faces prices p₁ = 2, p2 = 1 and has income m > 0. If rounding is needed, please round to 3 decimal places. a) When she optimally chooses to consume positive quantities of both goods, Anne consumes how many units of good 1? b) Anne optimally chooses to consume positive quantities of both goods when m > (fill in the blank)
Q: 5. Problems and Applications Q10 Consider the following table of long-run total costs for three…
A: Given question topic related to Economies of scale
Q: Currently internet scammers steal an estimated $81million per year from the Australian public. While…
A: Connecting with families and kids in research online presents novel difficulties requiring cautious…
Q: In the economy of Ukzten in 2010, consumption was $3,000, exports were $400, GDP was $5,000, imports…
A: Government spending refers to money spent by the public sector on the acquisition of goods and…
Q: If you make $83200 in Alaska, how much would you need to make in Arkansas to keep the same standard…
A: Real income which means how many goods can be bought with given level of income . If we want to…
Q: Which of the following policies would lead to increased productivity in the fishing industry? Check…
A: Productivity refers to the economic measurement of the ability of the input resource to generate…
Q: The higher labour costs under skilled-based pay indicate that it may be a better fit to companies…
A: In a market, a firm hires labor as a variable input resource for which firm has to pay the wage rate…
Q: Discuss what the trad-offs between global consistency (Goloablization) and local adaptation…
A:
Q: 12/12 points During the pandemic of 2020, disinfecting wipes were very popular because people…
A: Here, it is given that in 2021, scientists asserted that the COVID-19 infection is not caused by the…
Q: Which of the following is consistent with the neoclassical theory of the labour? Question 27…
A: According to the neoclassical model, the wage is determined by the marginal product on the demand…
Q: Who ensures that property rights are protected and enforced? O the property owners the banking…
A: Property rights give the owner legal rights that the property is of owner and no one can take it…
Q: Just based on general information you possess, do you think the demand for computers is likely to be…
A: Elasticity refers to the change in quantity demanded of a product due to change in its price. If the…
Q: [Select all that apply] Let the cost of producing a books be 100+ x and a price - demand equation be…
A: The price of the elasticity to demand refers to the percentage change in the quantity demanded of a…
Q: 33. Which of the following statements istrue? Almost all hyperinflations follow the same pattern…
A: Hyperinflation is a term used to describe rapid, excessive, and out-of-control price increases in an…
Q: 1) Mr. Bora's disposable income is 10 000 TL. per month. His zero level autonomous consumption is…
A: MPC is the marginal propensity to consume and MPS is the marginal proprnsity to save. We use the…
Q: Explain how to use the sharing economy Uber platform for transportation in South Africa?
A: Individuals and groups can profit from underutilized assets by participating in sharing economies.…
Q: Export promotion provided infant industries with a protected market in many developing countries. O…
A: In an economy, export promotion refers to the situation when government provides some subsidy or…
Q: John owns and runs a food truck, which is a 20% chance that his truck will be firebombed by one of…
A: The given probability that damage will occur, P = 20% = 0.20 Probability of no damage = 1 - P =>…
Q: Discuss the problem of unemployment in India
A:
Q: 1) The principle that "More is better" results in indifference curves A) not intersecting. B)…
A: An indifference curve shows a blend of two merchandise that give a buyer equivalent fulfillment and…
Q: If RRSP contributions of $3530.02 at the end of every six months are projected to generate a plan…
A:
Q: Complete each of the following problems showing ALL your work. Answer the following questions…
A: The given utility function is U(x,y) = 0.5x0.4y0.6
Q: A house was for sale for 9 months with no offers at $350,000. It was taken off the ma sold in 2…
A: Framing Effect depicts what the introduction of a reality or figure means for choices. Individuals…
Q: Costs 0 MC D ATC
A: The firm will shut down it's operations and exit the market at a point for a competitive firm is…
Q: In comparing money to a share of Microsoft stock held by an individual, we can say Multiple Choice…
A: Money has several functions, some of which are as follows:A unit of account, Medium of exchange,…
Q: round knife. The estimates are summarized below. Compare them on the basis of annual worths at i=…
A: Given Round knife Straight knife First cost -300,000 -210,000 AOC per year -42,000…
Q: Determine the level of Q that maximizes total revenue. Determine the level of Q that minimizes the…
A: Given Demand equation faced by the manufacturer P=10-0.0004Q .... (1) Total cost TC…
Q: How does the size of deadweight loss (DWL) depend on the price elasticities?
A: Deadweight loss is cost to one or the other shopper or maker made because of shortcoming in…
Q: If the demand function is Q = 35,000-5,000P, then at point P=$6, an estimate of the point price…
A: Point elasticity is the value elasticity of interest at a particular point on the interest bend…
Q: explain how "Combine losses" and "Split up gains" are related to prospect theory.
A: Prospect theory is a concept in economics that explains how people make decisions when faced with…
Q: What is the impact of minimum wage on small/large businesses and their ability to stay competitive?…
A: On July 18, 2019, the United States House of Representatives updated the Raise the Wage Act of 2019…
Q: Given the following marginal tax rates and income brackets, calculate the effective tax rate for an…
A: The effective tax rate is the per cent of the income that an individual or an enterprise settles in…
Q: Ithy by working out, eating healthier, and taking preventive care. Assume that the cost of becoming…
A: 1. No. Becsuse, The only employer in the town is giving the job to everyone irrespective of the…
Q: Suppose that there is a 20 percent change that George's coffee shop will make $9000 in profits in…
A: Expected profit is the probability of getting a specific profit times the profit, and the expected…
Q: A US company wants to arrange a forward contract to buy euros in year. The interest rates for…
A: Exchange Rate is the conversion rate between two currencies. It is the value that a person gets when…
Q: The State government is considering building a new highway. Linda lives near the proposed highway.…
A: Average cost is defined as the total cost per unit of output. When we divide the total cost of…
Q: What if the information regarding market demand and market supply is conveyed in equations rather…
A: Given Market demand equation is given as Q=10-P . .... (1) Market supply equation Q=P.…
Q: What led to the demise of the Bretton Woods Exchange Rate System?
A: The US dollar was tied to the value of gold under the Bretton Woods System, and other currencies…
Q: Assume that the market for soybeans is perfectly competitive. Currently, firms growing soybeans are…
A: There are a huge number of buyers and sellers in a perfectly competitive market. The market forces…
Q: coordination requirements intellectual property issues capacity strategic control Select all of the…
A: 1 Answer- Coordination requirments, Capacity, Strategic control Explanation - As the coordination…
Q: give an example each of firms that you feel have small, moderate and large MES
A: The minimal efficient scale (MES) is the lowest point on a cost curve where a company can create a…
Q: O a. It makes more sense to raise price when advertising makes demand less elastic b. Some consumers…
A: 1) Answer: (c). The promotional campaigns create awareness amongst the buyers of goods. Thus,…
Q: The following problem traces the relationship between firm decisions, market supply, and market…
A: Answer: Given, Number of firms in the industry = 100 (1). Equilibrium occurs where the quantity…
Q: Consider following regressions: Y = a₁ + a₂X+U Y* =b₁ + b₂X* + V Where: Y = mY, X* =nX D Show that:…
A: Y = a1 + a2 X + U_____________[1] After scaling, regression: Y* = b1 + b2 X* + V mY = b1 + b2 (nX) +…
Q: How are in-kind transfers best described? Question 36 options: They are obtained only by those…
A: When talking about in-kind transfers it refers to the exchange of goods or services among people,…
Q: OA. When a large proportion of income is spent on a product or service, the more elastic the supply…
A: Elasticity is supply is a concept in which the change in quantity supplied is measured as a result…
Q: Discuss the impact of contractionary monetary policy on the LM curve
A: The primary goal of monetary policy is to keep the money supply under control throughout the economy…
Q: 1. A company mecessfully introduced wireless, studio quality carbads. This recent innovation has…
A: Given; Demand function; P=250-0.00125Q Cost function; C=1806250+25Q+0.001Q2 Formula to calculate:-…
Q: Now consider Marie’s problem in the long run, where her stock of cattle may vary. Set up her long…
A:
Q: Farley's Frozen Yogurt is a purely competitive firm that sells frozen yogurt cakes. The market price…
A: Market price is basically known to be as the price generally operating where the services or an…
Q: When defining the hypothesis, we present… a. None of the responses b. The null…
A: A hypothesis is a formal statement that explains the relationship between two or more variables in a…
1z
Step by step
Solved in 2 steps with 2 images
- The preferences of a typical Californian can be represented by the following utility function: U (x1 , x2 ) = α ln(x1) + (1 − α) ln(x2) Here, x1 and x2 are the quantities of electricity and gasoline, respectively. The consumer faces prices given by p1 and p2 and has income m. Currently, the government has decided to impose a consumption restriction so that any person in the state is allowed to consume at most 50 units of electricity (x1 ≤ 50). Call this restriction a rationing constraint. (a) If α=0.25, m=100,and p1 =p2 =1, find the optimal consumption bundle of gasoline and electricity. Is the electricity rationing constraint binding (meaning does x1∗ = 50)? (b) Suppose that α = 0.75, but the other parameters are the same. What is the optimal consumption bundle? Is the rationing constraint on electricity consumption binding? (c) Now, assume that there is no rationing constraint. Assume m = 100 and p1 = p2 = 1, but α remains as a generic parameter. Solve for the optimal quantity…Rakhi likes to consume only two commodities X and Y, and nothing else. Both the commodities give her positive utilities, thereby giving rise to her preferences being well- behaved and convex. However, she treats commodity X as an inferior good. Suppose Rakhi earns an income of 1000 per month and the ongoing prices of commodities X and Y are 20 and 10, respectively. (a) Show, with the help of a diagram, what will happen to her optimal consumption of commodity X, in each of the following circumstances: Situation A: Price of X falls to 10, while everything else remains the same. Situation B: Her income increases to 2000, while prices remain the same. (b) What can you say about the demand curve for commodity X that Rakhi’s choice behaviour would produce? Elaborate, with the help of diagram.A consumer prefers to consume two commodities in fixed proportions. Specifically, she prefers to consume 1 unit of x2 and 4 units of x1 at the same time. Represent her utility function and find the most preferred and affordable consumption bundle for prices p1 and p2
- Consider an individual whose preferences are represented by the utility function U(x1,x2) = min {3x1+x2 , x1+3x2}. For this individual, Calculate her optimal consumption bundle when she has an income of 24, and P1=1, P2=2. Calculate her optimal consumption bundle when she has an income of 24, and P1=1, P2=4. Calculate the income and substitution effects resulting from the change in price of Good 2 (on the level of Good 2 consumption!) Calculate her demand function X1* (P1, P2,m) Calculate her own price, cross price, and income elasticities at X1*(1, 2, 24) and at X1*(1, 4, 24). Based on these, can you say the goods 1 and 2 are (gross, or Marshallian) complements or substitutes?Miss Coco consumes cheese cake and curry puff. Her consumption yields the following total utility as shown in the given table. Miss Coco has RM52 to spend. Suppose that the prices of cheese cake and curry puff are RM8 and RM4, respectively. Quantity (units) Total Utility Cheese Cake Curry Puff 1 56 32 2 104 60 3 136 84 4 160 104 5 170 116 6 176 126 7 178 134 How many units of cheese cake and curry puff should Miss Coco buy to maximize her utility with the income of RM52?Joyce consumes x1 and x2 together in fixed proportions. She always consumes 1 unit of x2 for 2 units of x1. What is the utility function that describes her preference?
- Given the utility function U = 10X1.5Y0.5 a. Suppose prices of goods PX = 10, PY = 5, and income I = 400, solve for the optimal levels of X, Y, and U using the Lagrange Multiplier Method and graphically illustrate the resulting substitution, income, and net effects if the price of good Y is doubled, cet. par.Bob lives in San Diego and loves to eat desserts. He spends his entire weekly allowance on pudding and pie. A bowl of pudding is priced at $1.00, and a piece of apple pie is priced at $4.00. At his current consumption point, Bob's marginal rate of substitution (MRS) of pudding for pie is 4. This means that Bob is willing to trade four bowls of pudding per week for one piece of pie per week. Does Bob's current bundle maximize his utility—in other words, make him as well off as possible? If not, how should he change it to maximize his utility? Bob could increase his utility by buying more pudding and less pie per week. Bob's current bundle maximizes his utility, and he should keep it unchanged. Bob could increase his utility by buying less pudding and more pie per week.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. Suppose the price of a dress 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.