What is the effect of switching jobs on james welfare

Assignment Help Microeconomics
Reference no: EM132519062

James previously worked as a waiter that gave him a budget of $10 per week to spend on either chocolates or ice cream, both of which cost him $2.5 each. At those prices, James ate equal amounts of chocolate bars and ice cream. James now switches his job to work at the ice cream shop, which allows him to spend $7 on chocolates and ice cream per week. But as an employee benefit, he only has to pay $1 for ice cream.

1. What is the effect of switching jobs on James's welfare?

2. Suppose we further know that James's indifference curves have no kinks. In this case, what is the effect of switching jobs on James's welfare?

Reference no: EM132519062

Questions Cloud

Write a reflection on your work experience : Write a reflection on your work experience at a facility attending to COVID-19 patients in California. Explain the challenges you are facing.
Specializes in recycling used plastics into consumer goods : Alternatively, you can produce lampshades: you calculate that at the optimal production, you expect to sell 2,000 lampshades every year at $10 each
Create necessary journal entries for disposal of machinery : On 1 July 2016, Create the necessary journal entries for the disposal of the machinery and the acquisition of the motor vehicle on 1 July 2019.
Define how article will be beneficial to your assigned topic : In this writing, locate an article pertaining to the topic below. Choose your article wisely, because you will be incorporating the article into all three of.
What is the effect of switching jobs on james welfare : Suppose we further know that James's indifference curves have no kinks. In this case, what is the effect of switching jobs on James's welfare?
Explain the fact that the short-run supply curve for a price : Explain the fact that the short-run supply curve for a price taking firm is that segment of its marginal cost (MC) curve
State the cost of the plant asset being depreciated by kcm : State the cost of this plant asset being depreciated by KCM? And show the double entry to record this transaction on January 1 2017.
Earning negative economic profit : You and some friends are discussing news that could change the world as we know it, if the world-changing company survives! Hermes, a new automaker
Which market structure is considered most efficient : BUSHMAN Ltd Market Evolution BUSHMAN Ltd operates in an imperfectly competitive industry. It's the only producer of several herbs and supplements

Reviews

Write a Review

Microeconomics Questions & Answers

  What are the ethical considerations in not submitting

What are the ethical considerations in not submitting what the actual results show?

  Determine relationship in oil price and real gdp growth rate

In addition, review articles on topics related to oil prices and the impact on the economy. Analyze the data you retrieve to determine the relationship between.

  Competitive firm is in long-run equilibrium

When a monopolistically competitive firm is in long-run equilibrium, what do we know?

  Why was failing to devalue the pound the wrong strategy

Political vacuity is not confined to one side of the Atlantic. As already noted, Treasury Secretary Michael Blumenthal solemnly intoned in 1978 that ‘‘a good.

  Price elasticity of demand for cigarettes more time elapses

A study reported that a 10% increase in the price of cigarettes would reduce consumption by 4% in the short-run and by 7.5% in the long-run. Based on these estimates, what happens to the price elasticity of demand for cigarettes as more time elapses ..

  Describe how consumers make economic decisions

Scenario: You have been asked to assist your organization's marketing department to better understand how consumers make economic decisions.

  What will happen to the demand curve for the product

What would happen in market and If a price ceiling were established at $3, what would happen in this market?

  Derive the difference equation which will calculate price

Derive the difference equation which will calculate price in the time periods following this event.

  You have been retained by xyz university as a consultant to

you have been retained by xyz university as a consultant to make recommendations andor proposals for the marketing of

  Explain the impact of the concepts of asymmetric information

Explain the impact of the concepts of asymmetric information, political economy, and behavior economics, to describe how consumers make economic decisions.

  What happens to the market when mr burns raises the price

What happens to the market when Mr. Burns raises the price he charges - Will this stop his losses? Why or why not?

  What happens when your income increases

Name a good you consume for which your income elasticity of demand is positive. What happens when your income increases?

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