Determine prices of goods x and y

Assignment Help Business Economics
Reference no: EM1371358

Q. A consumer is initially in equilibrium at point C. consumer's income is $300 and budget line through point C is provided by $300 = $50X + $100Y. When consumer is provided a $50 gift certificate that is good  only at store X, she moves to a new equilibrium at point D.

a. Determine prices of goods X and Y.

b. Explain how many units of product Y could be purchased at point A?

c. Explain how many units of product Y could be purchased at point E?

d. Explain how many units of product Y could be purchased at point B?

e. Explain how many units of product Y could be purchased at point F?

f. Based on this consumer's preferences, rank bundles A, B, C and D in order from most preferred to least preferred.

g. Is product X a normal or an inferior good?

 

 

Reference no: EM1371358

Questions Cloud

Explain goleman uses an image of a golf bag with multiple : Explain Goleman uses an image of a golf bag with multiple clubs in it and What does this image symbolize?
Illustrate what three of those assumptions likely are : One of basic economic laws is ‘law of one price.' It says that provided certain assumptions one would expect that if free trade is allowed, illustrate what three of those assumptions likely are.
Concept of t-bills and t-notes : Treasury funds national debt by a mix of T-bills, T-notes, and T-bonds with maturities of 10-30 years. During President Clinton's administration Treasury proposed that by issuing more T-bills
How much friction force should the brake apply to the rim : How high will a 1.85 rock go if thrown straight up by someone who does 75 of work on it? Avoid air resistance.
Determine prices of goods x and y : When consumer is provided a $50 gift certificate that is good  only at store X, she moves to a new equilibrium at point D. Prices of goods X and Y. Explain how many units of product Y could be purchased at point A.
Short run and long run decisions : Assume that you became president of small theater company. Your playhouse has the 120 seats and small stage. The actors have national reputations, and demand for tickets is enormous relative to number of seats available
What is focal length of the lens : A 35 g bullet moving at 475 m/s strikes a 4.20 kg bag of flour that is on ice, at rest. The bullet passes through the bag, leaving at 270 m/s. How fast is the bag moving when the bullet exits.
Compare time complexity-convolution using direct convolution : Compare time complexity of convolution with n x n kernel when using: direct convolution with 2-D mask, and separable kernel.
Explain have you ever seen approach to leadership : Explain Have you ever seen (or been involved in) a situation in which a participative approach to leadership has gone bad?

Reviews

Write a Review

 

Business Economics Questions & Answers

  Same material and manufacturing costs

Either design will serve equally well and will involve the same material and manufacturing costs excluding the lathe as well as drilling operations.

  Elucidate the capital budgeting process

Elucidate the capital budgeting process. Comment on the key elements used to gauge capital projects. Evaluate capital investment decisions by using time-value-of-money yardsticks

  Compute the company total costs

Compute the company's total costs, and graph the revenue curve and the total cost curve. Do the curves have the shape you expect. Over what range of production is the company making pro ts.

  Illustrate what percentages would the price have to decrease

If Price elasticity of demand for restaurant meals is 2.27 and restaurant meals wants to increase slaes by 45% by illustrate what percentages would the price have to decrease to get the intended resualts.

  How government projects programs continue to give benefits

All astute comments thus far. Some government projects also programs continue to give benefits for many yrs.

  Which in the end reduces cost also not in spread sheet

Once issued by the parent, It stays which way also all transfer benefits (tax breaks) are lost forever.

  Explain it surprising that the company revenue increased

Explain it surprising that the company's revenue increased when it decreased the average selling price of its phones.

  Can you create a case for legalizing loan sharking

Will I be better or worse off as a result of taking out this loan. Can you create a case for legalizing loan sharking.

  Development of personal computer hardware

how does development of personal computer hardware and software reversed some of the trends brought on by the industrial revolution.

  Octor wishes to maximize her profit

If the doctor wishes to maximize her profit, elucidate how many nose operations she should perform each month.

  Which price is required for efficient allocation of resource

"The Assistant Secretary for Time Travel recommends that the bureau choose the socially optimal price, the price necessary for efficient allocation of resources. Which price is required for efficient allocation of resources.

  Years outside of an rrsp

As she will be in a lower tax bracket. As her financial advisor, which option do you recommend.

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