Homework Answers
Option B. This is because according to monotonicity, more is preferred to less and if the consumer is consuming interior to the budget line then that means there is scope for him/her to expand his consumption and fully exhaust his income, thereby consuming on the budget line rather than interior to it.
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Question 18 1 pts An optimal bundle cannot lie on the interior of the opportunity set...
Question 2 (22 pts.) Consider a representative agent with preferences over consumption c and leisure I...
Question 2 (22 pts.) Consider a representative agent with preferences over consumption c and leisure I represented by Uel)Inc + InI. 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 constraint 1 + N = h, where h is the total number of hours. a) (2 pt.) Combine the budget constraint...
Question 2 (22 pts Consider a representative agent with preferences over consumption c and leisune eted...
Question 2 (22 pts Consider a representative agent with preferences over consumption c and leisune eted by D(c,l).Inc+1η l. Her budget constraint is.c wM, wherw w the wage fat and N-the rof hours worked. The representative agent aso chooses how to allocate her time between work and lsu activities gven her time constraintN-h, where h is the total number oll hours al pt) Combine the budget constraint and the time constraint of the regesentative agent into a single constraint b)...
i was doing this question and i got thr intercepts for the original budget line to...
i was doing this question and i got thr intercepts for the
original budget line to = (8,0) snd (0,18) but the x intercepts
seem to be different in the answer scheme shown in the picture? is
this a mistske done by my professor or am i doing something
wrong?
2 Quasilinear preferences Consider the utility function u (1,32) = In + 32. Suppose that the old situation is given by Pi = 2.25 and P2 = 1 and m...
Question 13 1 pts Wally's Interior Design sells curtains. The selling price of a set of...
Question 13 1 pts Wally's Interior Design sells curtains. The selling price of a set of curtains is $1,080 and the variable (flexible) costs per set of curtains is $420. The Total Fixed Cost for the store are $87,352 What is the stores total profit when 200 sets of curtains are sold? (round to whole dollar, no decimals)
D Question 16 1 pts The instantaneous center of zero velocity must lie on the rotating...
D Question 16 1 pts The instantaneous center of zero velocity must lie on the rotating body. O False Question 17 1 pts The instantaneous center of zero velocity is momentarily at rest and its acceleration is also always zero O True False D Question 18 1 pts The tangential component of the relative acceleration due to rotation (aA/B) is 幸rv o rw
Section B. Short Answer Question (2 questions, 20 points each) Question 1 (20 pts) The following...
Section B. Short Answer Question (2 questions, 20 points each) Question 1 (20 pts) The following data pertain to products A and B, both of which are purchased by Emily. Emily has $105 to spend per time period. Initially, the prices of the products are PA $5, PB $10. And Emily's optimal consumption bundle is O1 {QA = 5, QB- 8}. 1.1) What is Emily's marginal rate of substitution when she consumes the bundle O1, i.e., ΔΑ MUB MRS MUA...
only question that is problem is (i) many thanks . Problem 1 [32 marks] A consumer...
only question that is problem is (i) many thanks .
Problem 1 [32 marks] A consumer has a demand function for good 2, X, that depends on the price of good I. P. the price of good 2. Pz, and income, m, given by xy = 2+ +2P. Initially, assume m= 40, P-1, and P = 2. Then the price of good 2 increases to P = 3. a) What is the total change in demand for good 2? [2...
1. Suppose that the price of peanut butter is $2 per jar and the price of...
1. Suppose that the price of peanut butter is $2 per jar and the price of jam is $4 per jar, and that the person in question consumes only peanut butter. (Assume that the person views both peanut butter and jam as goods.) a. What can you say about the number of jars of peanut butter that this person is willing to give up to get one jar of jam (i.e., the MRS) relative to the price ratio (Pjam/Ppb)? b....
1. (30 pts.) John is the Southwestern Regional Manager for the National Forest Service and has...
1. (30 pts.) John is the Southwestern Regional Manager for the National Forest Service and has to make decisions about how many tons of fish (P) to stock and how many new trails (T) to cut for recreational use. John's budget for Tonto National Forest in 2018 is $135,000. The cost of stocking a ton of fish is $3,000, while the cost of cutting a new trail is $27,000 (note, these figures are completely made up). (a) Write John's budget...
Question 16 1 pts A typical indifference curve is negatively sloped because: as we consume more...
Question 16 1 pts A typical indifference curve is negatively sloped because: as we consume more of one good, we are willing to give up the consumption of another good without changing our utility higher indifference curves represent higher levels of utility higher indifference curves represent lower levels of utility we assume that a consumer's income is constant Question 17 1 pts A typical indifference curve: O is convex to the origin (bowed in) has a constant slope is concave...
Question 2 (22 pts.) Consider a representative agent with preferences over consumption c and leisure I represented by Uel)Inc + InI. 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 constraint 1 + N = h, where h is the total number of hours. a) (2 pt.) Combine the budget constraint...
Question 2 (22 pts Consider a representative agent with preferences over consumption c and leisune eted by D(c,l).Inc+1η l. Her budget constraint is.c wM, wherw w the wage fat and N-the rof hours worked. The representative agent aso chooses how to allocate her time between work and lsu activities gven her time constraintN-h, where h is the total number oll hours al pt) Combine the budget constraint and the time constraint of the regesentative agent into a single constraint b)...
i was doing this question and i got thr intercepts for the
original budget line to = (8,0) snd (0,18) but the x intercepts
seem to be different in the answer scheme shown in the picture? is
this a mistske done by my professor or am i doing something
wrong?
2 Quasilinear preferences Consider the utility function u (1,32) = In + 32. Suppose that the old situation is given by Pi = 2.25 and P2 = 1 and m...
Question 13 1 pts Wally's Interior Design sells curtains. The selling price of a set of curtains is $1,080 and the variable (flexible) costs per set of curtains is $420. The Total Fixed Cost for the store are $87,352 What is the stores total profit when 200 sets of curtains are sold? (round to whole dollar, no decimals)
D Question 16 1 pts The instantaneous center of zero velocity must lie on the rotating body. O False Question 17 1 pts The instantaneous center of zero velocity is momentarily at rest and its acceleration is also always zero O True False D Question 18 1 pts The tangential component of the relative acceleration due to rotation (aA/B) is 幸rv o rw
Section B. Short Answer Question (2 questions, 20 points each) Question 1 (20 pts) The following data pertain to products A and B, both of which are purchased by Emily. Emily has $105 to spend per time period. Initially, the prices of the products are PA $5, PB $10. And Emily's optimal consumption bundle is O1 {QA = 5, QB- 8}. 1.1) What is Emily's marginal rate of substitution when she consumes the bundle O1, i.e., ΔΑ MUB MRS MUA...
only question that is problem is (i) many thanks .
Problem 1 [32 marks] A consumer has a demand function for good 2, X, that depends on the price of good I. P. the price of good 2. Pz, and income, m, given by xy = 2+ +2P. Initially, assume m= 40, P-1, and P = 2. Then the price of good 2 increases to P = 3. a) What is the total change in demand for good 2? [2...
1. Suppose that the price of peanut butter is $2 per jar and the price of jam is $4 per jar, and that the person in question consumes only peanut butter. (Assume that the person views both peanut butter and jam as goods.) a. What can you say about the number of jars of peanut butter that this person is willing to give up to get one jar of jam (i.e., the MRS) relative to the price ratio (Pjam/Ppb)? b....
1. (30 pts.) John is the Southwestern Regional Manager for the National Forest Service and has to make decisions about how many tons of fish (P) to stock and how many new trails (T) to cut for recreational use. John's budget for Tonto National Forest in 2018 is $135,000. The cost of stocking a ton of fish is $3,000, while the cost of cutting a new trail is $27,000 (note, these figures are completely made up). (a) Write John's budget...
Question 16 1 pts A typical indifference curve is negatively sloped because: as we consume more of one good, we are willing to give up the consumption of another good without changing our utility higher indifference curves represent higher levels of utility higher indifference curves represent lower levels of utility we assume that a consumer's income is constant Question 17 1 pts A typical indifference curve: O is convex to the origin (bowed in) has a constant slope is concave...
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