Find equation for indifference curve through bundle

Assignment Help Business Economics
Reference no: EM13861531

Suppose Alan’s preferences are described by the utility function:

U(x, y) = ln(x) + 2ln(y)

a. Find Alan’s MRS.

b. Find the equation for Alan’s indifference curve through the bundle (3, 6).

Reference no: EM13861531

Questions Cloud

Identify the burnham or sullivan inspired elements : Identify the Burnham or Sullivan inspired elements of what you are writing about. What are some of the details that we've talked about in class that you see while we are out in the field
Is free trade always good policy : Is free trade always a good policy? Using Paul krugman's "is free trade passé?" And bhagwati's paper on labor and environmental standards, comment on the status of US free trade policy. Make sure to add your opinion on NAFTA. In what ways can nafta h..
Most important source of local tax revenue is income tax : About one out of every ten dollars of federal government spending goes toward interest on the national debt. Over one out of every three dollars of federal tax revenue comes from social insurance receipts. The most important source of local tax reven..
Does this event increase or decrease demand-supply : Does this event increase or decrease demand and/or supply? How does this change in demand and/or supply affect the equilibrium prices and quantity in the market? In other words, do they increase or decrease? Find the new equilibrium and compare it wi..
Find equation for indifference curve through bundle : Suppose Alan’s preferences are described by the utility function: Find Alan’s MRS. Find the equation for Alan’s indifference curve through the bundle (3, 6).
Determine the premium of the european call option mentioned : A European call option allows one to purchase 2 shares of stock B with 1 sare of stock A at the end of a year. A European put option which allows one to sell 2 shares of stock B for 1 share of stock A costs 11.5. Determine the premium of the European..
Continuously compounded risk-free interest rate : A stock is projected to pay a dividend of $3 in 1 month. A three month at-the-money European put option on the stock has a premium that is $2.751 higher than the premium for a three-month-at-the-money European call option on the stock. The continuous..
What is the inter pretation of the slope : In a two year setting Rod has earnings of $ 8 000 this year and earnings of $ 25, 0 00 next year. He can borrow or lend at an interest rate of 25%. Draw his budget line including endpoints. What is the slope of the budget line? What is the inter pret..
Contemplating to implement actions to prevent climate change : The government is contemplating to implement actions to prevent climate change. If no action is taken then climate change will happen with a probability of 20%. There is a probability of 100-20 that there will be no climate change. We will not be abl..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Write a well-reasoned argument defending your stance

Write a well-reasoned argument defending your stance. If deposit insurance were abolished, elucidate how would this change incentive structure facing deposit theory institutions.

  Is demand for your cds elastic or inelastic

You observe a positive relationship between price that your store charges for CDs and total revenue from CDs. Is demand for your CDs elastic or inelastic.

  What are the pros and cons of the two tax methods

Some economists and policymakers argue in favor of replacing the current income tax in the USA with consumption tax. What are your opinions on the issue? How do think such change impacts your income and expenditure pattern? Which tax methods do you p..

  Find the equivalent of present worth

Find the equivalent of present worth (t = 0) of a uniform series of $4550 for 8 years, if the payment is made every 12 months, starting 6 years from now. Assume the interest rate is 12% per year, compound continuously.

  The demand curve for dining out

In a recession, consumers have less income to spend. As a result, if dining out is a normal good, then which of the following would happen to the demand curve for dining out?

  Decrease cost profits by decreasing its number of customers

Billboards cost money to make and don't really seem to significantly benefit anyone other than billboard-makers. A company c putting up billboards presumably increases profits from the resulting increased number of customers, but don't competing busi..

  Prepare the income statement and retained earnings statement

Prepare the income statement and retained earnings statements for the year and the classified balance sheet at August 31.

  The only sure things in life are death and taxes

As the saying goes, "the only sure things in life are death and taxes." This saying points out the result that everything having to do with taxes is an automatic fiscal policy.

  Orange crops in florida

In late 2006 and early 2007, orange crops in Florida were smaller than expected, and the crop in California was put in a deep freeze by an Arctic cold front.

  Q1 timber companies in the united states cut down many

q1. timber companies in the united states cut down many trees on openly owned land. describe likely efficiency of

  Provide an example for each about decision-making

Assume for this CheckPoint that purchasing a new home is a major decision requiring a substantial financial outlay where the wrong decision has long-term financial consequences.

  Q1 as the ending of month approaches you realize that you

q1. as the ending of month approaches you realize that you perhaps will not be able to pay the next months rent.

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