Assume that Amy views right shoes and left shoes as perfect complements: a left shoe will...
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Assume that Amy views right shoes and left shoes as perfect complements: a left shoe will not increase her satisfaction unless she can obtain the matching right shoe. Give a utility function that represents Amy’s preferences.
Suppose that she has $286 to spend on shoes. Assume that a right shoe costs $60 and a left shoe costs $50. What is Amy going to do? [assume that it makes sense to buy fractions of a shoe, such as half a shoe]. Show the budget set, the indifference curves and the optimal point in a graph.
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Assume that Amy views right shoes and left shoes as perfect
complements: a left shoe will...
4. Suppose that a consumer faces the choice of how many left shoes to buy and...
4. Suppose that a consumer faces the choice of how many left shoes to buy and how many right shoes to buy if the price of a shoe is $20 and the consumer has $200 to spend on shoes. (20 points in total) a. Write down the consumer's budget constraint, assuming that we will measure left shoe consumption on the X axis and right shoe consumption on the Y axis. (5 points) b. Sketch a graph of the budget constraint....
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...
1. (15 pts) Suppose Amy enjoys apple juice (A) and grape juice (G) according to U(A,G)...
1. (15 pts) Suppose Amy enjoys apple juice (A) and grape juice (G) according to U(A,G) = 3A+4G. (a) (4 pts) If apple juice costs 3 cents per ounce and grape juice costs 5 cents per ounce, and Amy has 30 cents to spend on these products, how much apple juice and grape juice should she buy to maximize her utility? (b) (3 pts) Draw the graph of her indifference map and her budget constraint, and show that the utility...
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,...
How can we assess whether a project is a success or a failure? This case presents...
How can we assess whether a project is a success or a
failure?
This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of creating an integrated company. The case illustrates some of the challenges associated with integration. It also presents the obstacles facing companies that undertake projects involving large information technology projects. Bombardier and Its Environment Joseph-Armand Bombardier was 15 years old when he built his first snowmobile...
4. Suppose that a consumer faces the choice of how many left shoes to buy and how many right shoes to buy if the price of a shoe is $20 and the consumer has $200 to spend on shoes. (20 points in total) a. Write down the consumer's budget constraint, assuming that we will measure left shoe consumption on the X axis and right shoe consumption on the Y axis. (5 points) b. Sketch a graph of the budget constraint....
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...
1. (15 pts) Suppose Amy enjoys apple juice (A) and grape juice (G) according to U(A,G) = 3A+4G. (a) (4 pts) If apple juice costs 3 cents per ounce and grape juice costs 5 cents per ounce, and Amy has 30 cents to spend on these products, how much apple juice and grape juice should she buy to maximize her utility? (b) (3 pts) Draw the graph of her indifference map and her budget constraint, and show that the utility...
How can we assess whether a project is a success or a
failure?
This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of creating an integrated company. The case illustrates some of the challenges associated with integration. It also presents the obstacles facing companies that undertake projects involving large information technology projects. Bombardier and Its Environment Joseph-Armand Bombardier was 15 years old when he built his first snowmobile...
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