The dead for good X is given by Q Research shows that the prices of related goods are given by Py-$6,500 and P,-$100, while the average income of individuals consuming this product is M-$70,000. Xan interior or a normal good? Inferior Superior Can not be determined from information given Normal
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- A consumer’s preferences over two goods x and y are given bythe utility function U(x, y) = xαyβ with α, β > 0. The prices of the goods are px = 2 and py = 4.The consumer has an income of I > 0.(a) For what values of α and β are these utility functions strictly monotone?(b) For what values of α and β will the consumer demand (i.e., Walrasian demand) be more x than y?(c) For what values of α and β are these goods gross substitutes? For what values of α and β are these goods gross complements? Provide a justification for your answer.2. The demand for good X is given by:d= 6,000 - 0.5Px - Py +9Pz + 0.1MQxResearch shows that the prices of related goods are given by Py = $6,500 and Pz = $100, while theaverage income of individuals consuming this product is M = $70,000. a. How many units of good X will be purchased when Px = $5,230? b. Determine the demand function and inverse demand function for good X. Graph the demand curve forgood X.Suppose there are 100 consumers with identical individual demand curves. When the price ofa movie ticket is $8, the quantity demanded for each person is 5. When the price is $4, thequantity demanded for each person is 9. Assuming the law of demand holds, which of thefollowing choices is the most likely quantity demanded in the market when the price is $6? Group of answer choices 700 1,000 1,200 400
- Please written by hand solution The demand for good X is given by QXd = 6,000 - (1/2)PX - PY + 9PZ + (1/10)M Research shows that the prices of related goods are given by Py = $6,500 and Pz = $100, while the average income of individuals consuming this product is M = $70,000. a. Indicate whether goods Y and Z are substitutes or complements for good X. Good Y is: (Click to select) a substitute neither complement nor substitute a complement . Good Z is: (Click to select) a complement a substitute neither complement nor substitute . b. Is X an inferior or a normal good? Good X is: (Click to select) an inferior good neither a normal nor an inferior good a normal good . c. How many units of good X will be purchased when Px = $5,230? d. Determine the demand function and inverse demand function for good X. Graph the demand curve for good X. Instruction: Enter all values as integers, or if needed, a decimal rounded to one decimal place. Demand function: ( ) - ( ) PX…Jack derives utility from Hokey course (H) and Chess course (C) as given by the following utility function:U (H, C) = √HCThe average price for the hokey course is 20 dollars and for chess course16 dollars. Moreover, Jack has a budgetof 80 dollars. c) Find the income level which is necessary to make Jack reach the same utility level as before theprice change.d) Compute the quantities demanded with the new prices and the income you found in section c.e) Compute the quantities demanded with the new prices and the original budget of 800 dollars.Time remaining:00 :09 :39EconomicsUse the following to answer questions (29) - (31):In the town of “One Horse” there is one movie theater. Two groups of consumers, adults (A) andchildren (C), attend this theater. Suppose the demand for movies by adults is given by:QA = 50 - 0.50PA, where PAis price ofan adultmovie ticket(in cents)and QAis the numberofmovie tickets sold to adults atthe theater. Suppose the demand for movies by children is given by:QC = 20 - 0.50PC,where PCispriceofa children’s movie ticket(in cents)and QCis the numberofmovie tickets sold tochildren atthe theater. Also, imagine totalcostis fixed at$450, thus makingmarginalcostofprovidingonemore movie ticket to either an adult or a child constant at zero.[29]Ifthe movie theateris able to price discriminate amongits two groups ofconsumers, then itshouldcharge a higher price to group A.A.TrueB.False[30]Ifthemovie theateris able to price discriminate amongits two groups ofconsumers, then itsmaximum profit is closest in value…
- Consider public policy aimed at smoking.a. Studies indicate that the price elasticity of demandfor cigarettes is about 0.4. If a pack of cigarettescurrently costs $5 and the government wantsto reduce smoking by 20 percent, by how muchshould it increase the price?b. If the government permanently increases theprice of cigarettes, will the policy have a largereffect on smoking one year from now or five yearsfrom now?c. Studies also find that teenagers have a higherprice elasticity of demand than adults. Why mightthis be true?Mr. Shrikant always spends 20% of his income on commodity 'X'. The income elasticity of demand for commodity 'X' is O a. 0,15 O b. 6.67 OC -0.15 Od . 1Assume a piece of jewelry and 2 consecutive drops in its price. Also consider Alia’s demand to be relative elastic in the price range from ?1 to ?2, and that she perceives jewelry as a Giffen good in the price range from ?2 to ?3. Draw her price-consumption curve with well-behaved preferences. Clearly label your graph.
- The demand for good X is given by Qd = 6,000 – 1/2 Px – Py + 9Pz + 1/10 M Research shows that the prices of related goods are given by Py = $6,500 and Pz = $100 while the average income of individuals consuming this product is M = $70,000. A. Indicate whether goods Y and Z are substitutes or complements for good X. B. Is X an inferior or a normal good? C. How many units of goods X will be purchased when Px = $5,230? D. Determine the demand function and the inverse demand function for good X. Graph the demand curve for good X.Adam Smith from the Classical School had introduced the “water-diamond paradox” in his Theory of Value. But he did not solve the paradox because he failed to understand the concept of utility. Explain by demonstrating relevant graph how this paradox was solved by William Stanley Jevons from the Marginalist School by using law of diminishing marginal utility.If cross-elasticity of one commodity for another turns out to be zero, it means they areClose substitutesNone of theseGood complementsCompletely unrelated