Reference no: EM13159659
Exhibit A
Demand and Marginal Utility
Pizza Pies Compact Disks Movies
Total Marginal Total Marginal Total Marginal
Quant. Utility Utility ___ Quant. Utility Util. ___ Quant. Utility Utility ____
1 90 1 60 1 30
2 130 2 90 2 45
3 160 3 105 3 50
4 180 4 115 4 53.5 __
5 185 5 120 5 55 __
6 150 6 122 6 56 __
Complete all relevant information in the above chart. Exhibit A provides C. Chan's hypothetical total utility schedule for three goods--pizza pies, compact disks, and movies. Assume that the price of a pizza is $15, the price of a compact disk is $15, and the price of a movie is $7.50. How many units of each good will C. Chan consume if he spends all of his income of $85 a month on these three goods.
How do your answers change if the price of movies is $10? $5?
Plot the demand curve for movies.
What is the price elasticity of demand for movies if the price rises from $7.50 to $10.00?
What is the price elasticity of demand for movies if the price falls from $7.50 to $5.00?
Use the mean or arc elasiticity formula for the above two questions.
II. Individuals A, B, and C have the following individual demand curves:
QA = 10 - P
QB = 18 - 3P
QC = 14 - .5P
Make a price quantity chart for each consumer. Then add a column showing the total quantity demanded for a private good.
Next show the quantity price chart showing the total demand for a public good.
Graph all 5 demand curves on the same graph.
If the marginal cost is $4 a unit how many units should be bought if the good is a private good? How many units would each individual buy?
If the marginal cost is $4 a unit, how many units should be bought if the good is a public good? How much would each person be willing to pay?
Do consumers of public goods have the same incentives to reveal their true valuations of Public goods as they do of Private goods? Why or why not?
|
Representations of slavery in the visual arts
: Explain whether you think the representations of slavery in the visual arts (such as William Blake's illustrations, William Hackwood's cameo, or John Singleton Copley's painting) were more compelling and convincing of the injustices of slavery tha..
|
|
Sequence of events and signals activated
: Describe the sequence of events and signals activated when a 6800 device wants to exchange data with the 68000 processor.
|
|
Autobiographical or fictional account by a slave
: Explain whether you think an autobiographical or fictional account by a slave (such as Phillis Wheatley and Olaudah Equiano) is more persuasive than a biographical or fictional account by a white author (such as John Gabriel Stedman or Aphra Behn)..
|
|
How much should the government increase taxes
: Assuming that there are no direct expenditure offsets to fiscal policy, how much should the government increase taxes?
|
|
Valuations of public goods
: Do consumers of public goods have the same incentives to reveal their true valuations of Public goods as they do of Private goods? Why or why not?
|
|
What is the first-order growth rate constant
: The culture can only withstand a population of 4000 per mL. Tothe nearest hour, when will the stationary phase set in?
|
|
What is the bid price that maximizes expected contribution
: Why would your company have bid with a zero mark-up on some past tenders? Why didn't it win all of those contracts? What is the bid price that maximizes the expected contribution of the contract?
|
|
Recursive function in scheme
: Write a recursive function in Scheme, called "get-element" which takes two parameters, an index and a list. The function returns the element at the given index position in the list or #f if element is not contained. Indices start at 1 and go to th..
|
|
Hypothesis about the phenomena
: What phenomenon in space would you explore further? Give us a description of the phenomena, formulate a hypothesis about the phenomena and how you would go about studying it.
|