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What is the difference between a negatively and positively sloped income-consumption curve?
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- What is the difference between the income consumption curve and the Engel curve?What are the determinants for an individual demand? Receive with the help of indifference curves and the budget outline the optimal consumption plan. How do you transfer the optimal consumption plan into an individual demand function?Why does the general public often refer to the cost-of-living index?
- Derive with the help of indifference curves and the budget constraint the optimal consumption plan. How do you transfer the optimal consumption plan into an individual demand function?(Please explain with graphic) Suppose that a consumer cannot vary hours of work as he or she chooses. In particular, he or she must choose between working q hours and not working at all, where q > 0. Suppose that dividend income is zero, and that the consumer pays a tax T if he or she works, and receives a benefit b when not working, interpreted as an unemployment insurance payment. a. If the wage rate increases, how does this affect the consumer’s hours of work? What does this have to say about what we would observe about the behavior of actual consumers when wages change? Explained also with the graph b. Suppose that the unemployment insurance benefit increases. How will this affect hours of work? Explain the implications of this for unemployment insurance programs. Explained also with the graphConsider a worker who earns $20/hour in the labor market and receives $50 per week in non-labor income. Assume the total number of hours available for work (h) and leisure (L) is 168 hours per week (i.e., ? = 168 = ℎ + ?). What is the maximum value of consumption that this individual could achieve in a week? [i need this answer 4 upvotes]
- Using Fisher's Intertemporal Choice model, consider the following scenario: Suppose Milo earns $1,750 in the first period and $2,500 in the second period. If he consumes $1,200 in the first period and $1,550 in the second period, what is the interest rate? Now if Milo’s consumption changes to $1,800 in the first period and $2,000 in the second period, what is the new interest rate?The options for the sentence "Based on this model, households earn income when purchase in factor markets." are a. households b. firms (for the first blank line" and then for the second one are a. factors b. goods and servicesidentify the equilibrium level of income given y=600;,C=550; I=100 S=? solve for the S?
- Studies indicate that married men on average earn more income than unmarried men of the same age and education level. Why must we be cautious in concluding that marriage is the cause and higher income is the effect?What is the definition of economicGiven the consumption function C = a + bY (with a>0, 0 < b<1): a. find its marginal function and its average function. b. find the income elsaticity of consumption ECY, and determine its sign, assuming Y > 0. c. Show the income that this consumption function is inelastic at all positive income levels