How many pineapples will she consume

Assignment Help Business Economics
Reference no: EM13156458

Georgia consumes only grapefruits and pineapples. Her utility function is U(x,y)=x^2y^8, where x is the number of grapefruits consumed and y is the number of pineapples consumed. Georgia's income is $105, and the prices of grapefruits and pinapples are $1 and $3, respectively.

a) write down Georgia's budget constraint. What is the slope of the budget line?

b) What is Georgia's marginal rate of substitution at the point (x,y)?

c) How many grapefruits will she consume?

d) how many pineapples will she consume?

e) If her income increases to $120, how many grapefruits will she consume? Are grapefruits a normal or inferior good?


Reference no: EM13156458

What are the fiscal policy tools available to the government

What is fiscal policy? What are the fiscal policy tools available to the government? Explain and show graphically the impact of fiscal policy on equilibrium real income and in

What is the value three years from now

A 4-year annuity of eight $8,200 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. a) If the discount rate is 14 percent compo

Paradox through implementation of the imperative

Identify two examples of a paradox in health care and pair each with an imperative for change from the Summary of the IOM Report, Best Care at Lower Cost: The Path to Continuo

Calculate the cost c of producing each unit

A TV manufacturing company estimates that when TVs are sold for x dollars a piece, consumers will bu 8000/x TVs each week. The company also determines that profit is maximized

Find total cost-average cost and marginal cost equations

Nokia sells a new budget cell phone. Based on information provided by the accounting department, the average variable cost is: AVC = $30 + Q The average fixed cost is: AFC = $

Assume no transactions to prevent exchange rate risk

Assume an American company sells $10 million in goods to a German firm. The American company will receive less than $10 million in revenues if (assume no transactions to preve

How would assess whether a firm has effective supply chain

How you would assess whether a firm has an effective versus ineffective supply chain? Explain one example of a firm with an effective supply chain and one with an ineffective

Consider a public project to build a bridge

Consider a public project to build a bridge. The government is deciding whether to undertake it or not. Let k = 1 if the bridge is built and k = 0 if the bridge is not built.


Write a Review

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