Marginal rate of substitution between good

Assignment Help Business Economics
Reference no: EM13986761

Suppose Ann's marginal rate of substitution between good y and good x is -2. Bill's marginal rate of substitution between good y and good x is -3. each consumer has 10 units of each good. Propose a trade between Ann and Bill that would make each consumer better off.

Reference no: EM13986761

Questions Cloud

Assume that the demand for product : Assume that the demand for product X is represented by the following equation: QDx = 400 – 5Px + 4Py -3Pz iii) Calculate the cross price elasticity of demand for Good Y and Good X if If you are told that Py = 25 and Pz = 50.
How do you calculate the opportunity cost : How do you calculate the opportunity cost for: Mark can produce 50 baseballs in a month and Katie can produce 42 baseballs in a month. Also, Mark can produce 40 bats in a month and Katie can produce 30 bats in a month. What is Mark's opportunity cost..
Calculate the cross price elasticity of demand for good : Assume that the demand for product X is represented by the following equation: QDx = 400 – 5Px + 4Py -3Pz iii) Calculate the cross price elasticity of demand for Good Y and Good X if If you are told that Py = 25 and Pz = 50.
Develop a strategy for a firm to make sure its products : Develop a strategy for a firm to make sure it’s products always stay a big step ahead of its present competitors and also ahead of anyone else who threatens to come into their markets and compete with it. When you then put the strategy into execution..
Marginal rate of substitution between good : Suppose Ann's marginal rate of substitution between good y and good x is -2. Bill's marginal rate of substitution between good y and good x is -3. each consumer has 10 units of each good. Propose a trade between Ann and Bill that would make each cons..
Expansionary monetary policy is less likely to be effective : An expansionary monetary policy is less likely to be effective if: Assume we have the following economic data: Unemployment rate = 8% Inflation rate = 2% Annual labor force growth rate = 1% Annual increase in worker productivity = 1% Using the above ..
As a result of the failure of fed policy : As a result of the failure of Fed policy between 2004 and 2007: Between January 2004 and 2007, the federal funds interest rate increased from 1% to over 5%. As a result: Between January 2007 and January 2009, the federal funds interest rate decreased..
Assume increase in government spending : Assume increase in government spending. Would the effect on AD be larger if the Fed held MS constant in response or if the Fed were committed to maintaining a fixed interest rate?
Consumption goods and time spent on leisure : Sam has preferences for consumption goods (C) and time spent on leisure (L). The utility function is u(C,L) = CL. The household also has a home production technology summarized by a production function. How much time will Sam spend in leisure? How ma..

Reviews

Write a Review

Business Economics Questions & Answers

  Main conclusion from walt rostows stage theory

A main conclusion from Walt Rostow's stage theory was that

  Sharp increases in federal income tax rates

Each year since winning control of the House of Representatives in the 2010 election, Tea Party Republicans have argued that we need to immediately initiate sharp reductions in government spending and entitlement programs and rapidly move towards a b..

  Why a weaker dollar could involve the uk balance

Explain why a weaker dollar could involve the UK balance of trade deficit.

  Q1 1 give an example of an organization or business in your

q1. 1. give an example of an organization or business in your area that performs the form function and explain why you

  Case of robberies or harm by using these guns

Citizens can protect themselves in the case of robberies or harm by using these guns. Other states do not allow citizens to carry handguns

  Reducing the emission of greenhouse gases

What role can the government play in reducing the emission of greenhouse gases? What role can individuals play. If you were the economic advisor in the government, what economic measures would you suggest to tackle global warming.

  Level of output in short run using monetary-fiscal policy

The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following are arguments i..

  N order to maximize net benefits-managerial control variable

In order to maximize net benefits, the managerial control variable should be used up to the point where:

  What was the amount he withdrew at the end of eighth year

Mr. Smith has saved $1800 each year for 20 years. A year after the saving period ended, Mr. Smith withdrew $7500 each year for a period of 5 years. In the sixth and seventh years, he only withdrew $5000 per year. In the eighth year, he decided to wit..

  Rent control is an example of a price ceiling

Rent control is an example of a price ceiling. Which of the following problems must be addressed under a rent control program?

  Why would the money supply increased rapidly

Why would the money supply increased rapidly was inflation relatively low during the recession of 2007 2009 and its immediate aftermath?

  Do financial ratios differ from industry to industry

It appears that Very Vegetarian financial statements follow a very strict form. Why must accounting reports be prepared according to specific procedures (GAAP)? Is it permissible for businesses to be allowed some flexibility or creativity in p..

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