User Account

All Pages

Optimal consumption bundle

Assignment Help Microeconomics
Reference no: EM132471399

Mr. Mís preferences for notebooks (n) and pens (e) are given by the utility function u (e; n) = min f3e; 5ng. Suppose that the price of a pen is $5 and a notebook costs $7. You are told that his optimal consumption bundle contains 5 pens.

(a) How much must Mr. M have to spend on pens and notebooks?

(b) If Mr. M had $8 more dollars, how many more pens would he buy?

(c) If the price of a pen increased by 20%, how many pens would he buy?

Reference no: EM132471399

Questions Cloud

Comparing performance of the company over the last 2 years : Annual stock data is given in £ so you need to find the conversion rate on the relevant dates and convert one of them if they are in different currencies
Explain the use of conditions in the procurement process : Explain the use of conditions in the Procurement process. What are the differences between the distribution channel and the distribution chain?
Derive jims optimal consumption bundle : Derive Jimís optimal consumption bundle. Which of the following two options would Jim prefer? Show work.
What are the five principles for delivering value : What do mean by delivering value . What are the five principles for delivering value. Which of the five principles do you think is the most important?
Optimal consumption bundle : Suppose that the price of a pen is $5 and a notebook costs $7. You are told that his optimal consumption bundle contains 5 pens.
Equilibrium price and quantity of coffee : How will this change the equilibrium price and quantity of coffee? Explain your reasoning.
Relationship between elasticity and total revenue : Does understanding the relationship between elasticity and total revenue help you understand why some goods go on sale and others don't? Share your thoughts.
What is fair market value accounting : What Is Fair Market Value Accounting? How the FASB is going to standardize the calculation of financial instruments by looking at their historical cost?
What do economists mean by diminishing returns to input : Have you ever observed this principle at work in a job you've had? Describe how you've experienced this concept in the real world.

Reviews

Write a Review

Microeconomics Questions & Answers

  1 in the model of a dominant firm assume that the fringe

1. in the model of a dominant firm assume that the fringe supply curve is given by q -1 0.2p where p is market price

  Construct conceptual ethic framework by objectively defining

Construct a conceptual ethics framework by objectively defining, in your own words, each of the following concepts and describe the relationship between them.

  Calculating the price elasticity of demand

Critical thinking business example: Calculating the price elasticity of demand

  Draw a supplydemand diagram of the market for loanable

draw a supplydemand diagram of the market for loanable funds in the u.s. use the interest rate as the price of loanable

  Describe with a graph the short run and medium run effects

Economics Essay Assignment. Describe with a graph the short run and medium run effects of technological change on employment/unemployment.

  Describe how you would implement the quality program

Describe how you would implement this quality program. What tools and metrics would you use to ensure success? How would external quality organizations aid in determining your company's quality program?

  What level of employment is marginal product of labor seven

Assuming the home construction industry is perfectly competitive and there are no specialized inputs, firms will - what level of employment is the marginal product of labor seven

  Your basic microeconomic model of the projected

it is suggested that you review the recommended articles to glean any helpful information. in this discussion you will

  Multiple-choice microeconomics questions

David is horrified to see that the value of his favorite beverage has raised. Determine which of the following would unequivocally be responsible for this value raise?

  Examine the measurement of economic activity

Do you think that national governments should incorporate a monetary estimate of the value of household production in national accounting statistics?

  Identify an industry that the internet has transformed

• Identify an industry that the Internet has transformed or destroyed. • Then think of a new industry that the Internet has created. • What are the reasons behind the changes

  How employment opportunity have changed over time in america

In this exercise, you will consider how employment opportunities have changed over time in America. Complete the following assignment:

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