Bundle of cigarettes and coffee that iggy could trade for

Assignment Help Business Economics
Reference no: EM13861971

Iggy only consumes two goods: coffee and cigarettes. Three cigarettes can be traded for one cup of coffee in a free market, or one cup coffee can be traded for three cigarettes. Iggy initially has 12 cigarettes and 5 cups of coffees.

1. Find an equation that gives every bundle of cigarettes and coffee that Iggy could trade for.

2. Iggy has a MRS = -5 when he is holding his initial bundles (cigs, coffee)=(12,5). Given the rate of exchange, would Iggy trade cigarettes for coffee, or coffee for cigarettes?

Reference no: EM13861971

Questions Cloud

Elmer''s utility function : Elmer's utility function is U(x, y) = min{x, y^2}. If the price of x is $15, the price of y is $20, and Elmer chooses to consume 7 units of y, what must Elmer's income be?The answer is $875.
How much will be left over the reserve account : After the last prize distribution has been made (at the beginning of year 21), how much will be left over the reserve account?
Calculate bearings and distances of the roads chords : Calculate bearings and distances of the roads chords and secants.Whilst it is acceptable to use CAD to present your answers the exercise becomes trivial if it is used to calculate the solution. Calculations should be made with a programmable calcu..
The number of rose plants : Clarissa's utility function is U(r, z) = z + 120r - r^2, where r is the number of rose plants she has in her garden and z is the number of zinnias. She has 250 square feet to allocate to roses and zinnias. Roses each take up 4 square feet and zinnias..
Bundle of cigarettes and coffee that iggy could trade for : Iggy only consumes two goods: coffee and cigarettes. Three cigarettes can be traded for one cup of coffee in a free market, or one cup coffee can be traded for three cigarettes. Iggy initially has 12 cigarettes and 5 cups of coffees. Find an equation..
Us economic recession : In most recent US economic recession (2008- 2009), if policymakers had taken no action, how would the economy have evolved over time? Explain in words and refer to the AD-AS model. Answer should be in 280 words
Two ways to get the money : Assume that you have two ways to get the money, one way is to have it at present, so PV=10,000, another way is to get it in the future, so FV=11,000. Which one would you like to choose ? Why?
Zero-coupon bond with a yield to maturity : Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 6%. You hold the bond for five years before selling it. a. If the bond's yield to maturity is 6% when you sell it, what is the internal rate of return of your investment?
What is a lorenz curve draw one, labeling the axes : 1. This question refers to income distribution.  (1) what is a Lorenz curve? Draw one, labeling the axes  (2)Explain why a Lorenz curve can never lie to the left or above the 45 degree line  (3)Using a Lorenz curve diagram, explain how to calculate ..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Refinancing option to become economically attractive

You purchase a house for $200,000 by putting 10% down and taking a 15-year loan for the balance. The APR (annual percentage rate) of the loan is 6%. After 5 years, you can refinance your loan at 4.8% for a fee of $2,000. To the nearest tenth of a yea..

  Include the topics you feel comfortable with

Discuss this week's objectives with your team. Include the topics you feel comfortable with, any topics you struggled with, and how the topics relate to your field.

  Firms total revenues-revenues from both products

You are the manager of a firm that receives revenues of $60,000 per year from product X and $70,000 per year from product Y. The own price elasticity of demand for product X is -2.5, and the cross-price elasticity of demand between product Y and X is..

  Advantage of the theory of tax capitalization

In order to host the Winter Olympic Games the city of Vancouver incurred a large debt, which will have to be repaid over time. Reflecting on this fact, one Vancouver resident complained, “The average guy is going to see his taxes increase” [Austen, 2..

  Salvage value was assumed in calculating the capital cost

K.T. Labs bought a Gene gun for $25,000. The accounting department has estimated that the machine would have an annualized capital cost of $3,880 over its 10-year service life. What salvage value was assumed in calculating the capital cost? The firm'..

  In the replacement analysis under various circumstances

In the replacement analysis under various circumstances. Briefly summarize what your text calls Techniques 1 (Is Appropriate When Replacement Repeatability Assumptions Hold), 2 (If the replacement repeatability assumption holds, compare EUAC of the d..

  Qbob as well as nancy live in a new housing development as

q.bob as well as nancy live in a new housing development as well as they would like to have fire hydrants installed to

  Number of atms increase should not it increase credit supply

In macroeconomics from williamson (4th edition) chapter 11 problem 7, if the number of atms increase should not it increase the credit supply? Instead of the credit demand because of an increase in R, as it’s done in this solutions manual?

  At what quantity of output does marginal cost attain

At what quantity of output does marginal cost attain its minimum value? At what quantity does average variable cost equal marginal cost?

  When the economy went into recession

When the economy went into recession, the Federal Reserve took several actions in an effort to jumpstart the economy (lowering interest rates, purchasing U.S. Treasury bonds, etc.). Do you think those efforts were successful? Should similar or furthe..

  Is price-discrimination always wrong

Explain gambling from a risk-return perspective and from a Christian worldview. What is wrong (from a Biblical viewpoint) with gambling if consumers want it? Is price-discrimination always wrong? Under what conditions might it be ethically allowable?

  What factors in global segment can have significant impact

What factors in global segment can have significant impact on U.S. restaurant industry? How does each of these factors shape the growth and changes of the industry? What are the future trend of each factor and the resulting changes of the industry?

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