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.
#“Nominal GDP declined between 2008 and 2009, therefore the GDP deflator must also have declined.”
what is meant by diminishing scale output
Liberalisation and Changing Sectoral Composition of FDI: The latest is the ICT wave that has influenced the global shift in service industries the most. Therefore, these flow
Marginal Propensity to consume or known as (MPC) relates to a change in net or total consumption expenditure to a change in the total disposable income. Symbolically it is writt
Explain about the economies and diseconomies of scale. Economies and Diseconomies of Scale: a. There are economies of scale while long-run average total cost refuses as outp
Consider an economy characterized by the following Cobb-Douglas production function: Y=4K 1/4 L 3/4 Where K and L represent physical capitaland labor, respectively. Assume t
During the past five decades, there has been a shift in the composition of the federal budget toward more spending on income transfers and health care and a smaller share for natio
What are the differences between perfect competition and monopoly competition? Ans) In a monopoly, you are gaining an unfair benefit over any competition because you own so many
Macroeconomics usually deals with the behaviour of aggregates of economic variables. An economic variable is a magnitude whose value may changes. Important variables in macroeconom
If the marginal disutility of labor increases, the equilibrium real wage increases and the equilibrium quantity of labor goes up. True or false?
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