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!
Suppose Mike’s utility consists of consuming two ordinary goods: Hotdogs (normal good) and beer (inferior good). Quantity and price for hotdogs and beer are Xh, Xb, Ph and Pb and his income is I. Drawing a clean and clear graph, answer the following questions. Show the answer to all the parts on one graph.
Note: Put beer on the horizontal axes and hotdogs on the vertical axes.
a. Draw Mike’s indifference curve, budget line and show the optimal point on the graph.
b. Suppose government decreases excise tax on beer. Draw the new budget line and show the new optimal point. (Hint: pay attention to the type of the two goods.) (2 marks)
c. Show the income effect, substitution effect and total effect.
d. Refer to your graph, are these two goods substitutes, complements or unrelated?
What was Philips trying to achieve by tilting the balance of power in its structure away from national organizations and toward the product divisions? Why was this hard to achieve? What were the points of the organizational changes made by Cor Boonst..
One of the central questions that society must answer regarding medical care is: What is the optimal mix of medical care expenses? Which of the following activities involve Mary playing a game of chance? Which of the following is an example of a game..
The Disney Company regularly offers coupons good for discounted admissions into its amusement parks. However, they never offer any discounts on merchandise inside the parks (food; souvenirs; etc.). How can you explain this difference using the concep..
What factors determine the demand, say, for British pounds in foreign exchange markets? How are exchange rates determined under a flexible exchange rate system?
A company currently sells 60,000 units a month at $10 per unit. The marginal cost per unit is $6. The company is considering raising the price by 10% to $11. Your boss tells you that price cannot drop below $9 because you cannot earn enough profit t..
In "Final Jeopardy" (pp. 234-242), Stephen Baker expresses an interesting look at the way technology, especially in terms of machines, could dramatically change the relationship between mankind and technology—not just helping us to locate information..
Economists believe that the current values of the deposit multiplier and the money multiplier are widely divergent. Why might these values differ at present? What (if anything) do you think must happen for them to converge once again?
You own a large collection of fine wines. You are considering liquidating these assets. You predict that the value of your collection will rise in the next few years. If you assume your cost of capital to be 10 percent, when should you sell your coll..
A company manufactures smartphone microprocessors whose cost function is given by C=6X+9, where X is the number of microprocessor chips. The selling price per unit is P=30-3X and maximum output of the plant is 30,000 units per month. Determine the op..
In a perfectly competitive factor market, a firm faces a(n):
A common news story in any jurisdiction with single payer health care systems - for example, in Canada their socialized system does not allow private health care alternatives - is the battle that pits the government health system's refusal to pay for..
Suppose the demand function for a profit maximizing monopolists good is P = 160 - 0.5Q, its total cost function is TC = 20 + 10Q + 0.3Q2, and its marginal cost function is MC = 10 + 0.6Q. If the firm uses a uniform pricing strategy, then rounded to t..
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