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A consumer of two goods faces positive prices for both goods and has positive income. Her preferences over consumption of good 1 and good 2 are represented by the following utility function: u(x1; x2) = e^(x1+ln(x2))^.5Assume, the price of good 1 is 1 (p1 = 1) and the price of good two is p2 > 0. Use m to denote income.a. What properties about utility functions will make this problem easier to solve?b. Which of the non negativity constraints on x1; x2 will bind for small m?c. Derive for the Marshallian demand functions and the indirect utility function.d. Derive the expenditure function for utility level u.
The organization you wish to pursue will convert existing hybrid Toyota Prius automobiles to plug-in hybrid vehicles.
Explain why does the US steel industry want a tariff on imported steel. Show the US steel market with and without a tariff, showing graphically why they will like a tariff.
The Government budget has been making at a deficit of approximately $60 billion for the last year, up from $50 billion the previous year.
Suppose a small city dry-cleaning market, which is monopolistically competitive. Currently, the typical dry-cleaner is charging $5 an product.
The inverse market demand curve is P=140-Q, and inverse supply curve is P=20+Q. Now Assume a commodity subsidy of $20 is given for each unit of production.
Calculate the optimal money growth rate needed for the Fed to hit its inflation target in the long run and Fed instead maintained the money growth rate from part A, what is likely to happen to inflation?
Between problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound of money supply, a low saving rate, poor capital base, and a lack of foreign exchange.
A local surf store estimates that their average consumers demand a year is P=3.5-0.5Q, and knows that the marginal cost of each rental is $0.5.
Account for the effect of the two proposed fiscal policy actions in the short run and long run. This includes a description of the consequences of relevant macroeconomic variables.
What fiscal policy would you implement and why? Graph and explain the whole situation from start to finish, make up your own numbers. Make up your own MPC from that you will be able to derive the multiplier.
Explain how many hours of labor should XYZ hire each day to maximize its profits.
Discuss the nature of VRI's environmental informational complexity and resource needs (Re: The Readaptation Model): and how it effects designing an organizational structure.
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