Implications of consumer theory

Assignment Help Microeconomics
Reference no: EM133259976

Several researchers tried to test some implications of consumer theory using data on food stamps recipients.

(a) If a food stamp recipient, call him Foster, chooses an "inframarginal" basket after receiving food stamps, what does the theory predict he should do if he receives a cash transfer of the same value instead of food stamps?

(b) If a food stamp recipient, call her Ruhi, chooses a "marginal" basket after receiving food stamps, what does the theory predict she should do if she receives a cash transfer of the same value instead of food stamps?

Please give me the correct answer with explanation and conclusion.

Reference no: EM133259976

Questions Cloud

What is special need children and what is environment : ECE212 Canadore College What is special need children and what is inclusive environment for special need children . Essay with conclusion.
Explain the issues you identified in the scenario : Explain the issues you identified in the scenario. Which factors should be considered? What is the source of the conflict
Is access on relevant and reliable information available : Will adult supervision (preferably a consultant on the field) be present? Is access on relevant and reliable information available?
Implement trauma-informed techniques : EDUC 2120 Valdosta State University Implement trauma-informed techniques and Foster a constructive and encouraging atmosphere at the school
Implications of consumer theory : Several researchers tried to test some implications of consumer theory using data on food stamps recipients.
Draw a demand and supply graph : Draw a demand and supply graph as part of your answer. Label it carefully.
Determine the demand equation for the paint : The price elasticity of demand for the paint is estimated to be -3. Determine the demand equation for the paint assuming that it is linear.
Analyze the differences among inert information : Analyze the differences among inert information, assumptions, and inferences. Explain an assumption that you have made in the past
Do you think it is foretaste of a puerto rican literature : Could this book be an antecedent of colonial literature? Do you think it is the foretaste of a Puerto Rican literature? Why?

Reviews

Write a Review

Microeconomics Questions & Answers

  How might a recession impact the circular flow of income

How might a recession impact the circular flow of income

  Why does brazil face a tradeoff on its ppf

Draw a graph of Brazil's PPF and explain how your graph illustrates scarcity. Why does Brazil face a tradeoff on its PPF?

  Strengths of consumer price index

What are the strengths of the CPI? What are the characteristics of these strengths? Same for weaknesses?

  Which of the families in the city will buy their shirts

Jim enters the town and makes a factory, which is employed by the locals. Every worker in the factory works on one machine and is able to produce 6 shirts per hour. The cost of running the machine is half a loaf of bread per hour, the cost to empl..

  Macroeconomics factors

During the job interview, the Vice President understood that you had received rigorous training in managerial economics, and you were able to choose some appropriate methods to predict the market movement.

  Assume that the market is perfectly competitive solve for

assume that the market is perfectly competitive. solve for equilibrium price and quantity pq. also compute the

  The canadian personal income tax system

What are some of the advantages, disadvantages to Replacing the Canadian personal income tax system with consumption tax: benefits and challenges.?

  What is the price that leads to the highest level of profits

What is the price that leads to the highest level of profits for this firm? Show the area on the graph that represents the above normal profits earned at the profit maximizing price output combination.

  What happens to quantity demanded in equilibrium

When supply falls, what happens to quantity demanded in equilibrium? (This should get you to notice that both suppliers and demanders change their behavior)

  Derive all the second-order and cross partial derivatives

For the production function Q = 8K0.6L0.5 derive a function for the slope of the marginal product of L. What effect will a marginal increase in K.

  Who gets recognized for uncovering problems

The manager of a corporate division faces the possibility of an audit every year. She preferes to spend time preparing if she will be audited; otherwise, she would prefer to invest her time elsewhere. The auditor, who gets recognized for uncover..

  State the transversality conditions

State thes implified version of the problem in which the household chooses tomorrow's capital stock instead of today's investment .2 Given the Setup in 1.1, state the current value Lagrangian. .3 State the household's first-order conditions for cons..

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!

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