Homework Answers
Add Answer to:
4. Assume your budget is $30 and the price of goods A and B are $5/unit...
2. Identifying normal, inferior, and Giffen goods The green line BC, on the following graph represents...
2. Identifying normal, inferior, and Giffen goods The green line BC, on the following graph represents your initial budget constraint for good X and good Y, and point A represents the optimal consumption choice, given this choice set. Suppose the price of good X dropped by 50%. The compensated budget is parallel to BC2, representing the same tradeoff between good X and good Y, and it is tangent to the given indifference curve (U) at point B. On the following...
Homework 3 Chapter 5: Demand 1. What happens to the amount of x and y consumed...
Homework 3 Chapter 5: Demand 1. What happens to the amount of x and y consumed when income falls if x and y are normal goods? Draw a budget constraint (before the income decrease) and a convex utility curve that corresponds to the optimal consumption bundle. Draw a new budget constraint (after income falls) and a new convex utility curve that corresponds to the optimal consumption bundle. Has the amount of x and y consumed increased or decreased due to...
3. Ramon has $100 to spend on apples and bananas. The price of apples is $4...
3. Ramon has $100 to spend on apples and bananas. The price of apples is $4 a pound and the price of bananas is $2 a pound. The graph below represents Ramon's budget line with his consumption of apples on the Y-axis and his consumption of bananas on the X-axis. Homework 2: Problem Set 2 Apples (pounds) BL1 Bananas (pounds) (a) On the graph above: Add the intercepts of BL . Assuming that Ramon chooses to purchase 20 pounds of...
The utility function is u = x1½ + x2, and the budget constraint is m =...
The utility function is u = x1½ + x2, and the budget constraint is m = p1x1 + p2x2. Derive the optimal demand curve for good 1, x1(p1, p2), and good 2, x2(m, p1, p2). Looking at the cross price effects (∂x1/∂p2 and ∂x2/∂p1) are goods x1 and x2 substitutes or complements? Looking at income effects (∂x1/∂m and ∂x2/∂m) are goods x1 and x2 inferior, normal or neither? Assume m=100, p1=0.5 and p2=1. Using the demand function you derived in...
Refer to the graph below for the questions 2a-2f). Wolfie consumes pizza and soda and the...
Refer to the graph below for the questions 2a-2f). Wolfie consumes pizza and soda and the graph illustrates his indifference curves. 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Pizza 2. a) Suppose Wolfie has an income of $24, that Ppizza = $2, and that Psoda = $2. Draw Wolfies budget constraint in the above figure. What is the opportunity cost of one more slice of pizza? b) At this...
40 38 36 34 32 30 28 26 84 22 16 ад 12 10 8 6...
40 38 36 34 32 30 28 26 84 22 16 ад 12 10 8 6 4 2 0 28 30 32 34 Pizza 18 20 0 2 4 6 10 12 14 16 22 24 26 2. a) Suppose Wolfie has an income of $24, that Ppizza = $2, and that Psoda budget constraint in the above figure. What is the opportunity cost of one more slice of pizza? = $2. Draw Wolfies b) At this income and prices,...
Suppose a family spends their income on two things: education (S) and all other goods, (X)....
Suppose a family spends their income on two things: education (S) and all other goods, (X). The family earns $60,000 a year. A unit of education costs $10,000 and a unit of other goods costs $15,000. a) Write the equation for the family’s budget constraint. b) Draw the family’s budget constraint. Put education spending on the x-axis and spending on all other goods on the y-axis. c) The local government opens a public school, which offers $20,000 worth of education...
Emma consumes only two goods: Good A and Good B
Emma consumes only two goods: Good A and Good B. Emma has a monthly salary of $1,000 from her part-time job. The price of Good A is $10. The price of Good B is $2. Emma currently consumes 5 units of Good A and consumes 25 units of Good B in a month.(a) Draw Emma's budget constraint and optimal consumption bundle. Please put Good A on the x-axis and Good B on the y-axis. (b) Emma has just received a...
(38pts) Suppose a consumer spends all of her income on only two goods, z and y. Her preferences o...
(38pts) Suppose a consumer spends all of her income on only two goods, z and y. Her preferences over these two goods are represented by the utility function u(r,y) min(, 4y). The price of good y is given to be S8. Her income and price of z are represented by m and ps, respectively. (a) (10 pts) Find the demand for good z as a function of m and pa. (b) (5 pts) Is good z ordinary or Giffen good?...
4) Assume that you are consuming Pepsi and Coke only and you consider them as perfect...
4) Assume that you are consuming Pepsi and Coke only and you consider them as perfect substitute one can of Pepsi for one can of Coke. Assume that the price of Pepsi is $1 per can and price of Coke is $3 per can and that your income is $30. a) Draw the budget constraint and indifference curve as needed. b) Show the optimal consumption bundle on your graph. c) Now assume that price of Pepsi increase to $2. What...
2. Identifying normal, inferior, and Giffen goods The green line BC, on the following graph represents your initial budget constraint for good X and good Y, and point A represents the optimal consumption choice, given this choice set. Suppose the price of good X dropped by 50%. The compensated budget is parallel to BC2, representing the same tradeoff between good X and good Y, and it is tangent to the given indifference curve (U) at point B. On the following...
Homework 3 Chapter 5: Demand 1. What happens to the amount of x and y consumed when income falls if x and y are normal goods? Draw a budget constraint (before the income decrease) and a convex utility curve that corresponds to the optimal consumption bundle. Draw a new budget constraint (after income falls) and a new convex utility curve that corresponds to the optimal consumption bundle. Has the amount of x and y consumed increased or decreased due to...
3. Ramon has $100 to spend on apples and bananas. The price of apples is $4 a pound and the price of bananas is $2 a pound. The graph below represents Ramon's budget line with his consumption of apples on the Y-axis and his consumption of bananas on the X-axis. Homework 2: Problem Set 2 Apples (pounds) BL1 Bananas (pounds) (a) On the graph above: Add the intercepts of BL . Assuming that Ramon chooses to purchase 20 pounds of...
Refer to the graph below for the questions 2a-2f). Wolfie consumes pizza and soda and the graph illustrates his indifference curves. 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Pizza 2. a) Suppose Wolfie has an income of $24, that Ppizza = $2, and that Psoda = $2. Draw Wolfies budget constraint in the above figure. What is the opportunity cost of one more slice of pizza? b) At this...
40 38 36 34 32 30 28 26 84 22 16 ад 12 10 8 6 4 2 0 28 30 32 34 Pizza 18 20 0 2 4 6 10 12 14 16 22 24 26 2. a) Suppose Wolfie has an income of $24, that Ppizza = $2, and that Psoda budget constraint in the above figure. What is the opportunity cost of one more slice of pizza? = $2. Draw Wolfies b) At this income and prices,...
(38pts) Suppose a consumer spends all of her income on only two goods, z and y. Her preferences over these two goods are represented by the utility function u(r,y) min(, 4y). The price of good y is given to be S8. Her income and price of z are represented by m and ps, respectively. (a) (10 pts) Find the demand for good z as a function of m and pa. (b) (5 pts) Is good z ordinary or Giffen good?...
4) Assume that you are consuming Pepsi and Coke only and you consider them as perfect substitute one can of Pepsi for one can of Coke. Assume that the price of Pepsi is $1 per can and price of Coke is $3 per can and that your income is $30. a) Draw the budget constraint and indifference curve as needed. b) Show the optimal consumption bundle on your graph. c) Now assume that price of Pepsi increase to $2. What...
Most questions answered within 3 hours.
-
Consider a concept learning example of 5 attributes. Attributes
can take one of (5,3,2,2,6) values respectively....
asked 2 minutes ago -
Red light of wavelength 675 nm is incident on a slit of width
4.56 × 10−6...
asked 12 minutes ago -
An object 4.0 mm high is on the optical axis of two lenses with
focal lengths...
asked 8 minutes ago -
Suppose that each team in a league has a demand curve for
generic advertising (a league-wide...
asked 8 minutes ago -
1. The WJC purchases denim. The avg. daily demand of
western is 1000 yards and the...
asked 17 minutes ago -
Memory Allocation
a) Is it possible to have both internal and external
fragmentation with fixed partition...
asked 18 minutes ago -
Steven can afford car payments of $300 a month for 72 months.
The bank will lend...
asked 34 minutes ago -
Embedded
System..
1.
Analyze
the instruction
sets below.
LDR R1, [R0,
#0x08]
SUB R1, R1,
R2,...
asked 38 minutes ago -
Use proper sentence structure to communicate clearly.
Choose the correct sentence structure in each of the...
asked 38 minutes ago -
There are investors who claim they only invest in companies with
great products and outstanding management,...
asked 41 minutes ago -
what is employee/ employer relations ?
why is Employee/ Employer relation is important in the context...
asked 59 minutes ago -
Explain the relationship between tests of acquisition and
payment cycle and tests of accounts payable. Give...
asked 58 minutes ago