User Account

All Pages

Consumption increase or decrease of given period

Assignment Help Microeconomics
Reference no: EM131789098

Question: Mandy has an income of $800 in period 1 and will have an income of $500 in period 2. Her utility function is U(c1, c2) = c0.80 c0.20, where c1 is her consumption in period 1 and c2 is her consumption in period 2. The interest rate is .25. She unexpectedly won a prize that made her period 2 income $1,000 (period 1 income remained $800). By how much would her period 1 consumption increase or decrease? Show your work.

Reference no: EM131789098

Questions Cloud

Show joe reservation price on graph using indifference curve : Joe is a thrill seeker and receives utility from working in a risky environment. Assume there are only two types of jobs, riskless and risky.
What is the net present value of the project : An investment of $100,000 promises returns of $40,000 per year for each of the next three years. What is the net present value of the project
What strategies do you employ to stay on-task : What are the three most important elements of personal and professional etiquette that you employ in your professional life?
Prepare the journal entries to record the issue of the bonds : Prepare the journal entries to record the issue of the bonds on July 1, 2016, and the interest payments on December 31, 2016
Consumption increase or decrease of given period : Mandy has an income of $800 in period 1 and will have an income of $500 in period 2. Her utility function is U(c1, c2) = c0.80 c0.20.
Determine the division of income among the three members : Determine the division of income among the three members. If an amount box does not require an entry
Identify the main types of business entities : Identify the main types of business entities and discuss the advantages and disadvantages of each.
Draw the market supply and demand curves : Draw the market supply and demand curves. What are the efficient price and efficient quantity? Explain the Jaw of supply and the law of demand.
Discuss accounting and sec regulations : Discuss accounting and SEC regulations as a means to prevent financial reporting fraud. Your discussion should include research to support your opinions

Reviews

Write a Review

Microeconomics Questions & Answers

  Calculate the demand elasticity of the hotel room

What happens to total expenditure of the tour agency if the price falls from $350 to $250 per night per room? Calculate the demand elasticity of the hotel room. Is the demand for hotel room elastic, inelastic, or unit elastic?

  New facility to replace madison square garden

Suppose New York wants to build a new facility to replace Madison Square Garden. Assume that the cost of building a new arena in midtown Manhattan is $2 billion and that all the costs occur right away. Also assume that New York will receive annual be..

  Decreasing unemployment rate causes economic growth

Economists have observed that as an economy grows the unemployment rate tends to fall. Which statement is most probable to be correct?

  The cost of paving a new multi-use trail

The cost of paving a new multi-use trail is $1.7 million. Minor repairs and up-keep will cost $100,000 per year. Every 10 years the trail will need a major re-surfacing at a cost of $850,000. These costs will continue indefinitely.

  Explain about encountering negative returns

These multiple choice problems belong to Economics. The first problem is about encountering negative returns, the second problem is about competitive firm producing in the long run.

  What economic factors might account for industry differences

Coke and Pepsi have sustained their market dominance for more than a century. General Motors and Ford have been hard hit by competition. In one paragraph, explain what economic factors might account for these industry differences.

  Difference between shutting down and going out of business

You are the manager of a perfectly competitive firm selling a product. Your business is making a loss because total revenue is less than total costs. What would you do--shut down or continue to operate.

  Researchers have estimated the long run demand elasticity

Researchers have estimated the long run demand elasticity for almonds is -0.47, and the long run supply elasticity is 12.0. The short run demand elasticity for almonds is -0.30

  Why is the practice more prevalent in one industry

Compare and contrast: why is this practice more prevalent in one industry than another? Why does firm X adopt this practice more than firm Y?

  What are the benefits and detriments of each system

Describe the difference between the specialist, market maker and electronic system for trading stocks. What are the benefits and detriments of each system How is the difference between the real estate market and the financial markets reflected in ..

  How do local laws local taste preferences and local culture

generally speaking many companies are interested in the potential cost savings of using the same product and

  Homemakers are not included in the employment

Q#1. Homemakers are not included in the employment or labor force totals compiled by the Bureau of Labor Statistics household survey. They are included in the working-age population totals. Suppose that homemakers were counted as employed and include..

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd