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!
Question: Scott derives utility from only two good, Muffins (M) and bagels (B). His utility function is U(M,B)=M*B. The marginal utility that he recieves from muffins (MUM) and bagels (MUB) are given as: MUM = B and MUB = M. Scott has an income of $20 & the price of muffin (PM) & bagels (PB) are both $2.
a. Write equation that characterizes Scott's budget constraint.
b. What quantities of M and B will maximize Scott's utility given the information above? What's his total utility at this bundle?
c. Graph Scott's budget line and the indifference curve with muffin on x-axis & bagels on y-axis. Indicate the point that maximizes Scott's utility?(Make sure to indicate intercept points on x & y axis)
d. Suppose the government decides to levy an excise tax of $1 per unit on bagels and the excise tax is fully passed onto consumers in form of $1 increase in price. What's Scott's budget constraint now that he is facing this tax?
e. Which consumption bundle would Scott choose now that this tax on bagel has been implemented? What's his total utility at this bundle?
f. How does Scott's total utility change after facing the tax?
Connect your previous findings with the theories covered in class. What theories are most appropriate to understand the patterns of trade.
Cost suppose a company has two separate plants that manufacture the same item. Suppose x is the amount produced at plant I and y is the amount at plant II.
Calculate a consumer's demand for goods
Compute the sample autocorrelation function for personal disposable income (Yt) for m = 13 lags. Plot the sample correlogram. Repeat for the ?rst-differenced series (ΔYt).
sarahs pretzel plant has the following short run cost function cqk wq31000k3250k where q is sarahs output level w is
Using a separate supply and demand diagram for each part, illustrate the effect of value of the yen in terms of dollars of each of the following;
What were the root causes/events that led to the Great Depression - what was the role of Keynesian economics in fighting the depression and was it effective?
Presume that a monopolist charges (a uniform) price P = $24 and the price elasticity of demand is -6. We can conclude that its marginal cost should be:
Bill made a budget and planned to deposit $150 a month in a savings account, beginning September 1. He did this, but on the following January 1.
Discuss and explain the income and consumption relationship make sure to describe marginal propensity to consume. If you received an extra dollar, how much of it would you spend?
A new widget, with a service life of four years, would save $50,000. in production costs each year. Using a 12.00% nominal annual interest rate, determine the highest price that could be justified for the widget, i.e., determine the present value of ..
Use the key word ECONOMIC NEWS in an Internet search engine (Google, Bing, etc.) to locate an appropriate news story or article that illustrates the ideas presented in the reading.
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