Raylene's consumption of peanut butter (good 1) and almond
butter (good 2) is characterized by the utility equation
u(x1,x2)=3x1+3x2. Her
income is given by m = $100.00, and the prices
per unit for peanut butter and almond butter are
p1= 5 and p2= 10,
respectively.
She wakes up on Black Friday and her income has magically increased
by $150.00.
Assume prices have not changed. With this change in income, find
her change in consumption for both goods.
The change in peanut butter (good 1) consumed is 
units. Good 1 is
a(n)
good.
The change in almond butter (good 2) consumed is units. Good 2 is
a(n)
good.
Homework Answers
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Raylene's consumption of peanut butter (good 1) and almond
butter (good 2) is characterized by the...
Part 1: Find the marginal utility of an additional unit of good x for a consumer...
Part 1: Find the marginal utility of an additional unit of good x for a consumer with utility function when their current consumption level is and Part 2: Find the marginal rate of substitution between goods and for a consumer with utility function when their current consumption level is and u (z, y) x-y- 2 = 16 We were unable to transcribe this imageWe were unable to transcribe this imageWe were unable to transcribe this imageWe were unable to transcribe...
Part 1 (1 point) Juliana's optimal consumption of movie tickets is given by the function x*...
Part 1 (1 point) Juliana's optimal consumption of movie tickets is given by the function x* = 5m, where m is her income and Pi is the price of a movie ticket. According to Juliana's preferences, movie tickets are a(n) good. Part 2 (1 point) Assuming her income (m =300.00) increases by $100.00 and the price of a movie ticket is Pi = 2, by how many units does her consumption of movie tickets change?
Question 2 (22 pts.) Consider a representative agent with preferences over consumption c and leisure l...
Question 2 (22 pts.) Consider a representative agent with preferences over consumption c and leisure l represented by (c,)In c+Inl. Her budget constraint is c S wN, where w is the wage rate and N-the number of hours worked. The representative agent also chooses how to allocate her time between work and leisure activities given her time constraintl+N-h, where h is the total number of hours. We were unable to transcribe this image
Arlo is very health-conscious and consumes only two goods, rice cakes and quinoa. His utility function...
Arlo is very health-conscious and consumes only two goods, rice
cakes and quinoa. His utility function is ?(?,?)=?2?u(r,q)=r2q,
where ?r is the number of packs of rice cakes he consumes and ?q is
ounces of quinoa. The price of a pack of rice cakes is $4, and the
price of an ounce of quinoa is $8. Arlo has $720 to spend this week
on these two goods. Suppose that the price of quinoa suddenly falls
to $4.
A)Before the price...
Q5. Suppose that marginal utility of Good X = 100, the price X is $10 per...
Q5. Suppose that marginal
utility of Good X = 100, the price X is $10 per unit, and the price
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P12. The following tables
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Refer to the table above. Assume that the price of good X is $2 per unit,...
Refer to the table above. Assume that the price of good X is $2
per unit, the price of good Y is $5 per unit, and that the consumer
spends a total of $44 on both goods. What combination of
X and Y will the consumer purchase in order to maximize
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A.
We don’t have enough information of determine his consumption
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B.
He will spend more on X than on Y because X is less expensive
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C....
Question 1 [30 points] Two Canadian workers, Paul and Irlene, can each produce computers or apples....
Question 1 [30 points]
Two Canadian workers, Paul and Irlene, can each produce
computers or apples. Paul can produce either 60 pounds of apples or
1 computer per month. Irlene can produce either 140 pounds of
apples or 1 computer per month.
Note: Please be sure to be as accurate as possible
and to round your answers to two decimal places.
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plot from the drop down menu at...
Anna spends all her income on wine (good 1) and cheese (good 2). Her utility function...
Anna spends all her income on wine (good 1) and cheese (good 2). Her utility function is u(x1; x2) = x1x2. Her income is m = $200. The prices for the two goods are p1 = $20 and p2 = $10 respectively. Find Annaís optimal consumption bundle. Show the complete calculations, and illustrate your answer graphically (draw the indi§erence curve and the budget constraint). How would your answer change to part (a) if Annaís utility function were given by v(x1;...
1) Consider an economy having a Cobb Douglas production function, where the share of capital income...
1) Consider an economy having a Cobb Douglas production
function, where the share of capital income in total income is 1/2.
The depreciation rate is
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2) Assume a general savings rate
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Part 1 (1 point) Juliana's optimal consumption of movie tickets is given by the function x* = 5m, where m is her income and Pi is the price of a movie ticket. According to Juliana's preferences, movie tickets are a(n) good. Part 2 (1 point) Assuming her income (m =300.00) increases by $100.00 and the price of a movie ticket is Pi = 2, by how many units does her consumption of movie tickets change?
Question 2 (22 pts.) Consider a representative agent with preferences over consumption c and leisure l represented by (c,)In c+Inl. Her budget constraint is c S wN, where w is the wage rate and N-the number of hours worked. The representative agent also chooses how to allocate her time between work and leisure activities given her time constraintl+N-h, where h is the total number of hours. We were unable to transcribe this image
Arlo is very health-conscious and consumes only two goods, rice
cakes and quinoa. His utility function is ?(?,?)=?2?u(r,q)=r2q,
where ?r is the number of packs of rice cakes he consumes and ?q is
ounces of quinoa. The price of a pack of rice cakes is $4, and the
price of an ounce of quinoa is $8. Arlo has $720 to spend this week
on these two goods. Suppose that the price of quinoa suddenly falls
to $4.
A)Before the price...
Q5. Suppose that marginal
utility of Good X = 100, the price X is $10 per unit, and the price
of Y is $5 per unit. Assuming that the consumer is in equilibrium
and is consuming both X and Y, what must the marginal utility of Y
be?
P12. The following tables
illustrate Eileen’s utilities from watching first-run movies in a
theater and from renting movies from a video store. Suppose that
she has a monthly movie budget of $36,...
Refer to the table above. Assume that the price of good X is $2
per unit, the price of good Y is $5 per unit, and that the consumer
spends a total of $44 on both goods. What combination of
X and Y will the consumer purchase in order to maximize
utility?
A.
We don’t have enough information of determine his consumption
bundle.
B.
He will spend more on X than on Y because X is less expensive
than Y.
C....
Question 1 [30 points]
Two Canadian workers, Paul and Irlene, can each produce
computers or apples. Paul can produce either 60 pounds of apples or
1 computer per month. Irlene can produce either 140 pounds of
apples or 1 computer per month.
Note: Please be sure to be as accurate as possible
and to round your answers to two decimal places.
When plotting lines on the graph, select which line you want to
plot from the drop down menu at...
1) Consider an economy having a Cobb Douglas production
function, where the share of capital income in total income is 1/2.
The depreciation rate is
, population growth rate is n = 0.02
2) Assume a general savings rate
, depreciation rate
and a production per worker
, where 0< <1.
Suppose the savings rate increases. What happens to the golden rule
level of capital?
3) Consider an economy that is described by the production
function
. The depreciation rate...
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