Consider an economy consisting of consumers living for one period. Let dividends be higher than lump...
Consider an economy consisting of consumers living for one period. Let dividends be higher than lump sum taxes, and also let the substitution effects dominate in all cases. Answer the following questions.
a) Write down with equations the optimization problem of the consumer: what does she try to maximize? What is her constraint(s)?
b) Draw the consumer’s constraint(s); mark on the graph what the axes are, what is the slope, and where does the line cuts the axes. [
c) Make a separate graph with the consumer’s budget constraint, an indifference curve and indicate on the graph the optimality point as A. Write down the optimality condition for the consumer. Explain intuitively the optimality condition for the consumer
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Consider an economy consisting of consumers living for one
period. Let dividends be higher than lump...
Please answer the following question. Please show all your work/explanation. This question asks you to recall...
Please answer the following question. Please show all your work/explanation. This question asks you to recall what you know about how we study the choices of individual consumers. We will focus on an American tourist consumer in Tehran who must decide how many Persian Rugs (R) and how many ounces of Saffron (S) to purchase. Assume our consumer has complete, transitive preferences over Rugs and Saffron and prefers more to less. Explain in words the meaning of these assumptions. Draw...
1. Consider the market for dried beans in a small town of 9,000 consumers. Let each...
1. Consider the market for dried beans in a small town of 9,000 consumers. Let each consumer's preferences over beans (B, in pounds and other goods (G) be given by U(B,G) = 12BŽ +G For the rest of this question, fix the price of other goods at PG = 1 and let each consumer have a total weekly budget of I = 100. (a) Write the budget constraint for a consumer in terms of the price of beans, PB, and...
General Equilibrium: Consider an economy that can produce tacos (X) and hamburgers (Y). Let the production possibilities...
General Equilibrium: Consider an economy that can produce tacos (X) and hamburgers (Y). Let the production possibilities frontier (PPF) be Y2 = 100-4X2 (Eq. 1) or, equivalently ? = √100 − 4?2 (Eq. 2) (for positive values of tacos and hamburgers). This means that the rate of product transformation (RPT), the number of hamburgers that must be given up to get one more taco along the PPF, is − ??/?? = 4?/(√100−4?2) a. Suppose initially that the price of X...
2. Consider the following four consumers (C1,C2,C3,C4) with the following utility functions: Consumer Utility Function C1...
2. Consider the following four consumers (C1,C2,C3,C4) with the following utility functions: Consumer Utility Function C1 u(x,y) = 2x+2y C2 u(x,y) = x^3/4y^1/4 C3 u(x,y) = min(x,y) C4 u(x,y) = min(4x,3y) On the appropriate graph, draw each consumer’s indifference curves through the following points: (2,2), (4,4), (6,6) and (8,8), AND label the utility level of each curve. Hint: Each grid should have 4 curves on it representing the same preferences but with different utility levels. 3. In the following parts,...
1. (45 points) Consider the closed-economy one-period macroeconomic model developed in class. The...
1. (45 points) Consider the closed-economy one-period macroeconomic model developed in class. The consumer is endowed with h units of time, and chooses consumption C and leisure ` to maximize U = log(C) + θlog(`), subject to the budget constraint C = wNs + π. Production is described by Y = zNd . Government spending G is financed with a proportional revenue tax (tax rate τ ) on the firm. (a) (10) Find the firm’s optimal demand for labor Nd...
Need this answered as soon as possible 5. General Equilibrium: Consider an economy that can produce bowls of chili...
Need this answered as soon as possible
5. General Equilibrium: Consider an economy that can produce bowls of chili (X) and hot dogs (Y). Let the production possibilities frontier (PPF) be Y = 100-4X (Eq. 1) or equivalently Y = V100 - 4X2 (Eq. 2) (for positive values of chili and hot dogs). This means that the rate of product transformation (RPT), the number of hot dogs that must be given up to get one more bowl of chili along...
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...
In this exercise, you will analyze the supply-demand equilibrium of a city under some special simplifying...
In this exercise, you will analyze the supply-demand equilibrium of a city under some special simplifying assumptions about land-use. The assumptions are: (i) all dwellings must contain exactly 1500 square feet of floor space, regardless of location, and (ii) apartment complexes must contain exactly 15,000 square feet of floor space per square block of land area. These land-use restrictions, which are imposed by a zoning authority, mean that dwelling sizes and building heights do not vary with distance to the...
I need Summary of this Paper i dont need long summary i need What methodology they used , what is the purpose of this p...
I need Summary of this Paper i dont need long summary i need
What methodology they used , what is the purpose of this paper and
some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...
1. Consider the market for dried beans in a small town of 9,000 consumers. Let each consumer's preferences over beans (B, in pounds and other goods (G) be given by U(B,G) = 12BŽ +G For the rest of this question, fix the price of other goods at PG = 1 and let each consumer have a total weekly budget of I = 100. (a) Write the budget constraint for a consumer in terms of the price of beans, PB, and...
Need this answered as soon as possible
5. General Equilibrium: Consider an economy that can produce bowls of chili (X) and hot dogs (Y). Let the production possibilities frontier (PPF) be Y = 100-4X (Eq. 1) or equivalently Y = V100 - 4X2 (Eq. 2) (for positive values of chili and hot dogs). This means that the rate of product transformation (RPT), the number of hot dogs that must be given up to get one more bowl of chili along...
I need Summary of this Paper i dont need long summary i need
What methodology they used , what is the purpose of this paper and
some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...
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