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Given:
Qd = 800 - 4P
Qs = 8P - 400
What is the
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- ceteris paribus a consumer that purchases a sports car must consider the price of gasoline because these goods areAssume that pickled eggs are an inferior good and its market is currently in equilibrium. What will happen to the equilibrium price and quantity of pickled eggs if consumer incomes increase? Group of answer choicesIf the consumer income is OR 656, price of good (X) is OR 56.6 and the price of good (Y) is OR 40, what is the quantity of good (Y) purchased by the consumer if he is only purchasing good (Y). a. 11.59 b. 0.06 c. 0.09 d. 16.40
- 1. Assume you spend your entire income on two goods X & Y with prices given as PX & PY, respectively. Prices and income (I) are exogenous and positive. Given that U = X2 + Y2 , derive the Marshallian demand function for good Y and evaluate the type of good. 2. Assume you spend your entire income on two goods X & Y with prices given as PX & PY, respectively. Prices and income (I) are exogenous and positive. Given that U= X2Y2 , derive the Hicksian demand function for good Y.3. Suppose that initially PX = 2, PY = 8, I = 96 and the Marshallian demand function for good Y is given by Y∗ = (0.5I/ PY)+(0.5PX/PY)− 0.5. Calculate the own price & income elasticities of demand for good Y. Interpret your computed values and say something about the type of good.4. Suppose the economy has 100 units each of goods X and Y and the utility functions of the (only) 2 individuals are: UA (XA,YA) = X0.25Y0.75, UB (XB,YB) = X0.75Y 0.25Show that pareto-improvement is possible if,…If the consumer income is OR 568, price of good (X) is OR 81.3 and the price of good (Y) is OR 33.7, what is the quantity of good (Y) purchased by the consumer if he is only purchasing good (Y). Select one: a. 6.99 b. 0.14 c. 0.06 d. 16.85Demand and supply in a market are described by the equations:Qd = 66 - 3PQd = -4 + 2PCalculate the equilibrium P.
- When the income of buyers of good X rises the equilibrium price of good X will (assume X is a normal good):Which of the following must be true if good X is a normal good and income increases? Group of answer choices The demand for X will increase, and thus the price and quantity sold and bought willincrease. The demand for X will decrease, and thus the price and quantity sold and bought willdecrease. The demand for X will increase, and thus the price and quantity sold and bought willdecrease. The demand for X will decrease, and thus the price and quantity sold and bought willincrease.Suppose the equilibrium price of good X is $10 and the equilibrium quantity is 60 units. If the price of good X is $4: a. The quantity supplied will be more than 60 units. b. The quantity demanded will be more than 60 units c. There will be an excess supply of good X. d.The quantity demanded will be less than 60 units.
- If a price decrease leads to a decrease in consumer expenditure on the good, then demand must be [blank].If the price and quantity for a normal good, Good A, is $7 and 5 units at the original equilibrium, what is one possibility for the new equilibrium of Good A if we see income increase and all other factors stay constant? Choose 1 below. $6 and 4 units $6 and 6 units $8 and 0 units $8 and 6 units $8 and 4 unitsThis question provides another chance to practice implementing the 4-step approach to analyzing shifts in supply and demand. With the onset of the coronavirus pandemic, many people became fearful of going to restaurants for full-service, sit-down meals. C) As the demand decreased, the supply turned into a surplus. As the demand for restaurant meals has decreased, there is an excess of restaurant meals. D) Based on your answer to part c., will the equilibrium quantity of restaurant meals go up or will the equilibrium quantity of restaurant meals go down? Explain your answer. In particular, will your answer focus on quantity demanded or will it focus on the quantity supplied? E) Result: state the effects of the fear of eating in restaurants on the equilibrium price and quantity of restaurant meals
