Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Hsiang lives in a densely populated city in China. His utility depends positively on two things, the consumption of a composite good (X) and his health (H), and negatively on air pollution (P). His income is given: Y = 10. The price of X is 1. His health is affected directly by air pollution (P), but he can improve it by making defensive expenditure (D), such as buying an air filtering system for his home. Let us assume U (X,P,H) = X H – 2 P D (P,H) = 1/3PH^3 Write your numerical results up to two decimal points. a) Suppose that P = 3. Write Hsiang’s maximization problem. Draw the budget constraint and several indifference curves. b) Calculate the optimal amounts of X and H for Hsiang, and his resulting utility. c) Now suppose a new air filtering system is available on the market. It is supposed to be more efficient than previous filters. If Hsiang decides to buy it, his defensive expenditures become D (P,H) =PH^ 2. Calculate the optimal utility level that Hsiang can attain if he buys this new system. Should he take this decision? d) Suppose that Hsiang finds a new well-paid job, so that his income is raised to Y = 100. Compare the utility levels that he can reach using each filtering system. Which one should he adopt? e) Explain why poor people have a lower marginal willingness to pay for better health (or for an improved environmental quality).
By defining its business as printing books instead of empowering imaginations, a children's book publishing company would more than likely experience.
Suppose a linear demand function is estimated for good x as, Qd = 100 – 4*Px + 6*Py + M. where Px = $4, Py = $2, and M =10. M is the average income of consumers, measured in thousands of dollars. What is the price elasticity of good x? (choose the ne..
Suppose the EU now institutes a cap and trade system. Each permit is good for one ton of carbon abatement. The total cap is 120 tons. Each of the two plant types receives an equal amount of permits. What is the market price for permits?
q1. when the value of a nations imports exceeds the value of that nations exports the nation is said to have what?q2.
q.the news headlines during late 2012 and early 2013 were predominantly encompassed by the numerous deliberations
Suppose the airline industry consists of two firms, A and B. These two firms engage in Cournot competition with each other over a certain route for which inverse demand is P(Q) = 1000 − Q with Q = qA + qB. Solve for the Cournot equilibrium price. Sup..
What is the significancee of this opportunity cost to the search for better technology to reduce pollution?
The tax on cigarettes in New York City is the highest in the nation- $5.85 per pack. Does this tax raise a lot of revenue for New York City? Why or why not? What are some of the secondary effect of this tax?
q.consider an economy where there are n consumers each of them having one unit of available time. there is a
______An organization's shared values, beliefs, traditions, philosophies, rules, and role models for behavior represent its
Don is considering buying a truck at a cost of $30,000. He is planning to keep the truck for four years and is hoping that the truck will sell for $10,000 at the end of year 4. He estimates that the insurance and maintenance costs will be $2,000 in y..
Suppose the nominal interest rate is i = 10%, the time cost of a round trip to the bank is $25 and annual expenditure is $72,000. If a consumer makes N trips to the bank how much interest do they give up during the period? What is the total time cost..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd