User Account

All Pages

What share of your income do you spend on each good

Assignment Help Microeconomics
Reference no: EM131574912

Problem -

Imagine that you consume only two goods: bagels and coffee. Your utility function is characterized by U(QC, QB) = QC0.25QB0.75.

The price of bagels is $5 and the price of coffee is $2 and your income is $1,000.

a. Find out your initial consumption bundle and the utility it provides.

b. What share of your income do you spend on each good?

c. One day you wake up to the horrible news that the price of coffee increased to $3. What is your new optimal consumption bundle?

Reference no: EM131574912

Questions Cloud

What nike has done to improve the given situation : What Nike has done to improve this situation since this 2011 video. Include use of codes of ethics and other ethical standards implemented within organization.
What is the probability that other outcome is tail : In two fair coins care flipped and atleast one of the outcomes is known to be tail, what is the probability that other outcome is tail - Degree of the function
Analyze the expected running time and the error probability : Modify PRIMEGEN (l, k) in such a way that it must run until it outputs a number n. This means that one forbids the output "I was unable to find a prime,".
The goal to stimulating growth and coping behavior : Poor attitude, low morale-the nurses may feel resentment toward the new director coming in and reorganizing the department.
What share of your income do you spend on each good : Find out your initial consumption bundle and the utility it provides. What share of your income do you spend on each good
Design an efficient las vegas algorithm : Let p be a prime and let k = log2p be a positive integer. Design an efficient Las Vegas algorithm that computes k pairwise distinct quadratic nonresidues.
Describe the pluralist and elitist perspectives : Describe the pluralist and elitist perspectives. Both political parties embody each of the concepts to an extent. Explain how these concepts work in government.
Crime scene reconstruction and crime scene reenactment : What are the differences between crime scene reconstruction and crime scene reenactment
Modify the algorithm nquad : Modify the algorithm NQUAD in such a way that it always halts with a quadratic nonresidue (i.e., the answer "?" never appears).

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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