utitility, Microeconomics

Assignment Help:
In November 2010, every Mzumbe University student had an income of 150000/= per month,facing the price of meal (X) 1000/= and average price of other goods (Y) 1000/=.The initial utility maximizing quantities were, (X,Y): (75,75). In July 2011, the price of meal increased to 1500/= while the average price of other goods remained unchanged.The new utility maximizing quantities were (50,75). Attempt the following questions.

(a) To maintain utility constant an income adjustment brought the student to consume the basket (61,92). What are the income and substitution effects?

(b) Suppose the objective is to maintain purchasing power constant. Will utility be maximixed?

(c) In October 2011,the Higher Education Student''s Loan Board (HESLB) increased the allowance to 7500/= per day. Is this amount worth?

Related Discussions:- utitility

Equations, Ask q3x+5=20 uestion #Minimum 100 words accepted#

Ask q3x+5=20 uestion #Minimum 100 words accepted#

Cost function, how do minimum unit costs change with changes in fixed cost?...

how do minimum unit costs change with changes in fixed cost?

Homework, Do not submit more than 1 file in the Canvas submission link. A f...

Do not submit more than 1 file in the Canvas submission link. A few years ago peanut farmers in India experienced a super-bumper crop due to favorable weather conditions. Initially

Different pricing strategies of firms under oligopoly, Problem : (a) W...

Problem : (a) With reference to the characteristics of market structure, explain why the market for powdered milk in Mauritius is an appropriate example of monopolistic compet

Financial economies, Financial Economies: These are benefits obtained...

Financial Economies: These are benefits obtained by large firms as a result of contracting credit from financial institutions at lower interest rates than smaller firms. The

Specialization and trade, • If Mary uses all her resources to produce hats,...

• If Mary uses all her resources to produce hats, she can produce 48 hats an hour. • If she uses all her resources to produce apple pies, she can make 24 apple pies an hour. how

Market supply labour, use a graphical illustration to describe briefly what...

use a graphical illustration to describe briefly what the influence of each of the following be on the market supply of labour,(a) an increase in immigrants, (b) a reduction in wag

Economic growth and economic development, Economic growth and Economic deve...

Economic growth and Economic development: Economic Growth refers to an increase in real aggregate output (real GDP) reflected in increased real per capita income.A country is

Trade ., Nations trade what they produce in excess of their own consumption...

Nations trade what they produce in excess of their own consumption to:

Write Your Message!

Captcha
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