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 that Mr. Chauncey Gardener consumes two goods, X1 and X2 .His preferences can be described by the following utility function:
U = X10.5X20.5
He faces the following prices in the market: P1 = $5.00 and P2 = $10.00. His income is $1,000. Assume that he spends all his income.
A. How much will he buy of commodities 1 and 2? Explain your answer.
B. Suppose that the price of commodity 2 rises by $2.50 (from $10.00 to $12.50); what will be the change in the quantities consumed of goods 1 and 2? Explain.
C. In the previous question (part B), take the change in the quantity consumed of commodity 2 and decompose it into an amount associated with the substitution effect and another one connected to the income effect (use the Slutsky decomposition discussed in class).
In answering these questions, remember to provide numerical answers and to explain where your answers come from.
Product A is an end item and is made from two units of B and four of C. B is made of three units of D and two of E. C is made of two units of F and two of E. A has a lead time o
Importance of macroeconomics models Using the models we can, for example, analyze what happens when the government increases consumption, when the central bank increases the tar
What is Frictional unemployment Individuals who are temporarily unemployed when transiting between jobs or just entering labour market. This kind is typically short in durat
suppose c=a+by and investmentI is given.assuming mpc=.80 and I=50,find static and dynamic moel question #Minimum 100 words accepted#
Why is private property, and theand the protection of property rights , so critical to the success of the market system ? How do property rights encourage cooperation?
Explain why P=MC in the short-run equilibrium of the perfectly competitive firm, whereas in the long-run equilibrium P=MC=AC.
what happens when there is changes in the quantity supply?
A sample of 60 mutual funds was taken and the mean return in the sample was 13% with a standard deviation of 6.9%. The return on a particular index of stocks (against which the mut
The following Table summarizes the profits of two firms as a function of their capacity investments levels (you can also interpret these levels as the quantities they produce):
Illustrates about the terms of elasticity? • Definition of elasticity a. Price elasticity of demand b. Income elasticity of demand and c. Price elasticity of supply
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd