Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
56. A Californian college student consumes Internet services (I) and books (B). Her preferences are represented by a Cobb-Douglas utility function: U(I,B) = I1/4B1/4. The price of each good is $2 and the student has an income of $200. Over the course of the past year, the price of internet services has risen to $4, but the price of books has remained the same. The government has decided provide this student with additional money to compensate for the higher price of internet services. In order to determine the move government has 2 consultants who have made the following suggestions:
Consultant A: The student's income should be increased by a percentage found using a consumer price index (CPI).Consultant B: The additional income should allow the student to get her initial level of utility.a. Find the consumer's optimal bundle before the increase in price occurs.
b. Find the consumer's optimal bundle after the increase in price occurs with income still at $200.c. Find the amount of the transfer implied by consultant A.
d. Is the student necessarily better or worse off than before from such a transfer implied by consultant A? Explain why.
e. Is the transfer implied by consultant B more or less than the amount implied by A? Explain.
f. What is the precise dollar amount implied by consultant B?
To build trust among virtual team members, managers should Deep-six the egos
What can be accomplished about the impact of transportation costs on the price of the traded product in each trading nation.
Assume that every driver faces a 1% probability of an automobile accident every year. An accident will, on average, cost each driver $10,000.
What do you think he would suggest as an economic plan for our economy. Would they agree or disagree with the current policies.
The GDP is a total market value of final goods and services produced within a country over time. Why is this a reflection of this country's cost of living so varied making expenditures.
PbP Company have pay $10,000 to disassemble and ship the furnace to the new owner. What is the net cash flow after tax as it will result from selling this furnace in the year 2012.
Assuming sum-of-years digits depreciation, what book value will Model-I have after two years.
Illustrate that the tax be acceptable in spite of the deadweight loss. What tax revenue will be generated.
If there was a capital gain tax of 30 percent, what is the after-tax real interest rate, with the inflation rate of 8 percent.
The two economies are so far apart that they don't share ideas and each evolves as a separate roomer economy.
Howard Bowen is a large-scale cotton grower. The land as well as machinery he owns has a current market value of $4 million.
A company's cash sales for the month are $200,000 and its accounts receivable payments for the month are $100,000. What is its total incoming cash flow.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd