Homework Answers
28. In order to bring to the point C on the PPF the price of X has to be increased and the price of Y has to be decreased. Since there is an excess demand for X, an increase in the price of X will eliminate the excess demand by reducing quantity demanded and increasing quantity supplied. Since, there is an excess supply of Y, a decrease in the price of Y will eliminate the excess supply by increasing quantity demanded and decreasing quantity supplied.
29. All the points on the Contract Curve are pareto optimal hence, B, H, D are pareto optimal points because the indifference curves for the two consumers are tangent on those points and convex back to back to each other. A, C, E are pareto inefficient points.
Yes, it is possible for them to move to F from E by the exchange of goods.
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Could you please answer these two questions(28 &
29)?
28. The figure below shows production at...
Consider a pure exchange economy two consumers, Rachel and Lauren, and two commodities, watermelon and tomatoes....
Consider a pure exchange economy two consumers, Rachel and Lauren, and two commodities, watermelon and tomatoes. Rachel’s initial endowment is 4 units of watermelon and 3 units of tomatoes. Lauren’s initial endowment is 2 units of watermelon and 5 units of tomatoes. Rachel and Lauren have identical utility functions: Rachel’s utility is UR(WR,TR) = WRTR where WR and TR is Rachel’s quantity of watermelon and quantity of tomatoes, respectively; similarly, Lauren’s utility is UL(WL,TL) = WLTL where WL and TL...
Hello tutor, could you help me solve this question as soon as possible? Thank you Person...
Hello tutor, could you help me solve this question as soon as
possible?
Thank you
Person 1 and 2 are the only two individuals in an exchange economy. Each person drives utility from the consumption of two goods, x and y. Their utility functions are: 1. Person 1: U1 = xfyl-u Person 2: U2-x'' y," where (Xi,y) is consumption bundles of individual i E (1,2). The initial endowment bundles are: Person 1: (xgf.yt) Person 2: (x2,y2) Drive the utility maximizing...
Hello Tutor, Could you solve part d of this question for me ASAP. I need to...
Hello Tutor,
Could you solve part d of this question for me ASAP. I need to
see how the diagrams will look like.
Thank you.
Person 1 and 2 are the only two individuals in an exchange economy. Each person drives utility from the consumption of two goods, x and y. Their utility functions are: 1. Person 1: U1 = xfyl-u Person 2: U2-x'' y," where (Xi,y) is consumption bundles of individual i E (1,2). The initial endowment bundles are:...
Consider a pure exchange economy with two goods, wine (x) and cheese (y) and two con-...
Consider a pure exchange economy with two goods, wine (x) and cheese (y) and two con- sumers, A and B. Let cheese be the numeraire good with price of $1. Consumer A's utility function is UA(x; y) = 2x+y and B's utility function is UB(x; y) = xy. A's initial allocation is 10 units of x and 0 units of y. B's initial allocation is 0 units of x and 30 units of y. (a) Put wine x on the...
Anything will help Consider a pure exchange economy with two goods, wine (x) and cheese (y)...
Anything will help
Consider a pure exchange economy with two goods, wine (x) and cheese (y) and two con- sumers, A and B. Let cheese be the numeraire good with price of $1. Consumer A's utility function is UA(x, y) = xy and B's utility function is UB(x, y) = min [x, y). A has an initial allocation of 10 x and no y, and B has an initial allocation of 10 units of y and no x. (a) Put...
Information Quit P Flag question i Answer Questions based on the following graph. The graph below...
Information Quit P Flag question i Answer Questions based on the following graph. The graph below illustrates a simple exchange economy with two consumers, A and B, with Good X on the horizontal axis and Good Y the vertical. The economy is producing at Point E on the PPF. Point Fillustrates how the output of the economy is allocated to the two consumers, A and B. (Note that the origin point for Consumer A in the Edgeworth exchange box, Point...
Hello can you please help me answer the questions below. thank you Anna is separated from...
Hello can you please help me answer the questions below. thank
you
Anna is separated from her boyfriend. John, while she studies economics and he goes to art school. The govemment thinks that Flash Telecommunications. Anna's phone company, needs subsidization, 30 a price floor is instituted at $16 per minute. Marked for Telephone Cals Price per minute IS! 30 Price per Minute Quantity Supplied per Month Quantity Demanded per Month $18 12 28 Use the data in the table above...
answer all please and thank you Refer to the production possibilities frontier in below. Which of...
answer all please and thank you
Refer to the production possibilities frontier in below. Which of the following statements is true about point ? Good Y 0 2 4 6 8 10 Good X Select one: a. It is attainable only if we consume more of good X b. It is attainable only if we consume more of good Y. It is attainable only if we consume less of good Y. d. It is attainable only if we consume less...
These two questions please Figure 15-2 The figure below reflects the cost and revenue structure for...
These two questions please
Figure 15-2 The figure below reflects the cost and revenue structure for a monopoly firm. Cost and Revenue (5) Curve Curve G C VOR Quantity Refer to Figure 15-2. Which curve depicts the average-total-cost curve for a monopoly firm? Question 29 (1 point) Figure 15-5 The figure depicts the demand, marginal-revenue, and marginal-cost curves of a profit-maximizing monopolist. Price Marginal Cost Demand Marginal Revenue Refer to Figure 15-5. Which area represents the deadweight loss due to...
25. A consumer is currently at point A, as shown in the figure below. With the...
25. A consumer is currently at point A, as shown in the figure below. With the given budget line and indifference curve to maximize utility she should: 29, A monopolist faces a downward sloping demand curve, P-4610-13. 5.Q. The maximum total revenue lbe. A) $3935.57 B) $461.0 C) $6915 D) $922.0 30. If the price in a competitive market is S30, and the demand curve is given by the equation P = 90-3Q, then the consumer surplus will be A)...
Hello tutor, could you help me solve this question as soon as
possible?
Thank you
Person 1 and 2 are the only two individuals in an exchange economy. Each person drives utility from the consumption of two goods, x and y. Their utility functions are: 1. Person 1: U1 = xfyl-u Person 2: U2-x'' y," where (Xi,y) is consumption bundles of individual i E (1,2). The initial endowment bundles are: Person 1: (xgf.yt) Person 2: (x2,y2) Drive the utility maximizing...
Hello Tutor,
Could you solve part d of this question for me ASAP. I need to
see how the diagrams will look like.
Thank you.
Person 1 and 2 are the only two individuals in an exchange economy. Each person drives utility from the consumption of two goods, x and y. Their utility functions are: 1. Person 1: U1 = xfyl-u Person 2: U2-x'' y," where (Xi,y) is consumption bundles of individual i E (1,2). The initial endowment bundles are:...
Anything will help
Consider a pure exchange economy with two goods, wine (x) and cheese (y) and two con- sumers, A and B. Let cheese be the numeraire good with price of $1. Consumer A's utility function is UA(x, y) = xy and B's utility function is UB(x, y) = min [x, y). A has an initial allocation of 10 x and no y, and B has an initial allocation of 10 units of y and no x. (a) Put...
Information Quit P Flag question i Answer Questions based on the following graph. The graph below illustrates a simple exchange economy with two consumers, A and B, with Good X on the horizontal axis and Good Y the vertical. The economy is producing at Point E on the PPF. Point Fillustrates how the output of the economy is allocated to the two consumers, A and B. (Note that the origin point for Consumer A in the Edgeworth exchange box, Point...
Hello can you please help me answer the questions below. thank
you
Anna is separated from her boyfriend. John, while she studies economics and he goes to art school. The govemment thinks that Flash Telecommunications. Anna's phone company, needs subsidization, 30 a price floor is instituted at $16 per minute. Marked for Telephone Cals Price per minute IS! 30 Price per Minute Quantity Supplied per Month Quantity Demanded per Month $18 12 28 Use the data in the table above...
answer all please and thank you
Refer to the production possibilities frontier in below. Which of the following statements is true about point ? Good Y 0 2 4 6 8 10 Good X Select one: a. It is attainable only if we consume more of good X b. It is attainable only if we consume more of good Y. It is attainable only if we consume less of good Y. d. It is attainable only if we consume less...
These two questions please
Figure 15-2 The figure below reflects the cost and revenue structure for a monopoly firm. Cost and Revenue (5) Curve Curve G C VOR Quantity Refer to Figure 15-2. Which curve depicts the average-total-cost curve for a monopoly firm? Question 29 (1 point) Figure 15-5 The figure depicts the demand, marginal-revenue, and marginal-cost curves of a profit-maximizing monopolist. Price Marginal Cost Demand Marginal Revenue Refer to Figure 15-5. Which area represents the deadweight loss due to...
25. A consumer is currently at point A, as shown in the figure below. With the given budget line and indifference curve to maximize utility she should: 29, A monopolist faces a downward sloping demand curve, P-4610-13. 5.Q. The maximum total revenue lbe. A) $3935.57 B) $461.0 C) $6915 D) $922.0 30. If the price in a competitive market is S30, and the demand curve is given by the equation P = 90-3Q, then the consumer surplus will be A)...
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