Questions 1.4 and 1.5 refer to a consumer with preferences over food (x) and clothing (y) represented by the utility function u(x, y) = xy, and whose monetary income in 2018 was I = 2. In 2018 prices were (p2018, p2018) (1, 1), and in 2019 they are (p2019, p2019) = (4,1). hand written plz 1.4. The true consumer price index of this individual is 01 ☐ 1.5 风 2 ☐2.5. 1 1.5. The consumer price index of this individual calculated as a Laspeyres index is 01 1.5 2 ☑ 2.5.
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- A person's utility function is given by U(x, y, z) = 7xyz, where x, y, z denote then number of units of three commodities X,Y, and Z that the person consumes. The pricesr per unit of X,Y, and Z are 5 euro, 1 euro, and 3 euro respectively. If ther person has a budget of 270 euro, the person's utility is maximised when they consume units of X, units of Y, and units of Z. The person's maximum utility is If the person's budget is increased to 271 euro, then using the method of lagrange multipliers we find that the maximum utility is approximatelySuppose Devon is an avid reader and buys only reusable tote bagses. Devon deposits $2,000 into a savings account that pays an annual nominal interest rate of 20%. Assume this interest rate is fixed, and so it will not change over time. On the day she makes her deposit, suppose that a reusable tote bags has a price of $20.00. Initially, Devon's $2,000 deposit has a purchasing power of reusable tote bagses. For each of the annual inflation rates given in the following table, first determine the new price of a reusable tote bags, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Devon's deposit after one year in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row down to the nearest reusable tote bags. For example, if you find that the deposit will cover 20.7 reusable tote bagses, you would round the purchasing power…The demand equation for a product is ( p2 3D400-50p+ If the price of $15 is increased by %, find the corresponding percentage change in revenue. 1 If the price of $15 is increased by %, the approximate change in revenue is 2. %. (Do not round until the final answer. Then round to two decimal places as needed.)
- kad has estimated the following demand relationship for its product over the last four years, using monthly observations: ln qt = 4.932- 1.238 ln pt + 1.524 ln yt-1 + 0.4865ln qt-1 (2.54) (1.38) (3.65) (2.87) r 2= 0.8738 where q = sales in units, p = price in rs., y is income in rs,000, and the numbers in brackets are t-statistics. a. interpret the above model. b. make a sales forecast if price is rs. 9, income last month was rs. 25,000 and sales last month were 2,981 units. c. make a sales forecast for the following month if there is no change in price or income. d. if price is increased by 5 per cent in general terms, estimate the effect on sales, stating any assumptions.AD has estimated the following demand relationship for its product over the last four years, using monthly observations: ln Qt = 4.932- 1.238 ln Pt + 1.524 ln Yt-1 + 0.4865lnQt-1(2.54) (1.38) (3.65) (2.87)R2= 0.8738where Q = sales in units, P = price in Rs., Y is income in Rs,000, and the numbers in brackets are t-statistics.a. Interpret the above model.b. Make a sales forecast if price is Rs. 9, income last month was Rs. 25,000 and sales last month were 2,981 units.c. Make a sales forecast for the following month if there is no change in price or income.d. If price is increased by 5 per cent in general terms, estimate the effect on sales, stating any assumptions.Refer to Figure 3-2. A decrease in the expected future price of the product would be represented by a movement from A)A to B. B) B to A. C) S1 to S2. D) S2 to S1.
- economic Announcing in his Budget 2023 speech on Tuesday, Deputy Prime Minister and Finance Minister Lawrence Wong said cars with an OMV (the approximate cost of a car before taxes) higher than $80,000 will incur an additional registration fee (ARF, or the main car tax) of 320 per cent. The changes will take effect from the next round of certificate of entitlement (COE) bidding, which closes on Feb 22. Mr Wong said these changes are expected to affect the top one-third Do more research and apply what we have learned in “Demand & Supply”, “Elasticity” and “Taxation” to answer the following questions. 1. How does the ARF hike impact the luxury car market? Discuss the impact on the price and quantity of luxury cars (Use Demand and Supply graph to interpret your answer). 2. Mr Wong said the ARF hike was expected to affect the top one-third of cars and would generate about $200 million in additional revenue a year. Do you agree with his opinion? Apply the concept of elasticity to…Based on the Following Equations Saving (S) = 0.2Y - 60 Investment (1) = -30R + 740 Money Supply (MS) = 4000, Transaction Demand For Money (L1) = 0.15Y, Speculative Demand For Money (L2) = -20R + 3825. The Equilibrium Interest Rate R isBell Greenhouses has estimated its monthly demand for potting soil to be the following: N=400+4X where N=monthlydemandforbagsofpottingsoil X=timeperiodsinmonths(March2006=0) Assume this trend factor is expected to remain stable in the foreseeable future. The following table contains the monthly seasonal adjustment factors, which have been estimated using actual sales data from the past five years: Forecast Bell Greenhouses demand for potting soil in March, June, August, and December 2007. If the following table shows the forecasted and actual potting soil sales by Bell Greenhouses for April in five different years, determine the seasonal adjustment factor to be used in making an April 2008 forecast.
- A company selling widgets has found that the number of items sold, x, depends upon the price, p at which 70000 they're sold, according the equation a = (0.6p + 1)? Due to inflation and increasing health benefit costs, the company has been increasing the price by $0.03 per month. Find the rate at which revenue is changing when the company is selling widgets at $3 each. Revenue is decreasing by dollars per month Hint: Give your answer as a positive value.Rodrigo is taking a year between high school and college to work and save up. His utility from consumption each year is U(c) = discounts future utility by B. Rodrigo is going to make $I his year of working, and whatever he doesn't consume from that income will a savings account which will earn return r before he consumes next year. He has to pay for school expenses E in year two, before he consumes (but after return has been realized). 1-o and he go intoA company produces two products. The revenue made by selling q₁ units of the first product and q2 units of the second product is given by 2 = 91² 1² + 9₂² — 29192 +69₁. r(9₁,92) The current production consists of 10 units of the first product and 12 units of the second product. a) Calculate (10,12) and -(10,12). ər 292 b) The company will increase the production of the first product by 0.5 units and decrease the production of the second product by 1 unit. Do you expect the company to have a higher or a lower revenue? Use your answer to a)! ər 0q1 c) We can approximate the given revenue function by a linear function f (9₁, 92) for values (9₁, 92) which are close to (10,12). Find the equation of this linear function and use this function to estimate the revenue made by producing 0.5 units more of the first product and 1 unit less of the second product. Compare this result with the result you found in b). d) The demand for both products is currently increasing at a rate of 1 unit per…