Already have an account? Get multiple benefits of using own account!
Login in your account..!
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!
Suppose a consumer with income m = 12 has preferences that are represented by the utility function u(x1, x2) = x^3,x. The prices for goods 1 and 2 are p1 = 1 and p2 =1.
a. What is the equation for the consumer’s budget line?
b. What is the equation that describes the consumer’s MRS?
c. Write the tangency condition for this problem.
d. Solve for this consumer’s optimal bundle and then illustrate the optimal choice bundle, the budget set, and the indifference curve passing through the optimal bundle. Make sure to fully and appropriately label the diagram.
e. Now suppose that income increases to m = 15. Solve for the new optimal bundle and draw a new diagram containing both the original optimal bundle and the new optimal bundle.
Suppose that Raphael, an economist from a university in Arizona, and Susan, an economist from a university in Massachusetts, are arguing over budget deficits. Despite their di
There are two firms in an in an industry. Let q1 and q2 be the two firms in an industry and Q= q1 + q2 be the total output. The inverse demand in the industry if P (Q)= 45 – Q
The following table shows macroeconomic data for a hypothetical country. All figures are in billions of dollars. Billions of Dollars Gross private investment (investment) 90 C
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is -2, while group 2’s is -
The Mechanical Engineering department has a student team that is designing a formula car for national competition. The time required for the team to assemble the first car is
Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists’ definition of the
the demand curve to which the result pertains (it is: “the demand curve for McDonald’s hamburgers”). whether the result involves “moving along” the demand curve or “shifting”
Vat is tax applied at each point where value is added to goods or services from primary production to final consumption. refer to vat as an input and output tax respectively a
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