Derive a demand function, Microeconomics

Assignment Help:

Zac consumes only pizza and chianti. He consumes these goods in fixed proportions: 2 slices of pizza for one glass of chianti. His income is $100 per week.

a. Derive demand functions forpizza and chianti. Are the goods normal or inferior, substitutes or complements?

b. If pizza costs $1 per slice and chianti $3 per glass, how much of each good will he consume?

c. If the price of pizza falls to $0.5 per slice and, chianti stays at $3 per glass, how much of each good will Zac consume?

d. Using a suitably labelled diagram with pizza on the horizontal axis, illustrate the impact of the change in price of pizza from $1 to $0.5 per slice. Show the level of utility before and after the price change and show the decomposition line.


Related Discussions:- Derive a demand function

Discuss a minimum three services for older person, Mrs Holt, 85 years old, ...

Mrs Holt, 85 years old, has been admitted to acute care following a fall resulting in a fractured femur. She is a widow and lives alone with her three cats for company. a) What

Theories of Interest , Compare and Contrast Classical and Neo classical the...

Compare and Contrast Classical and Neo classical theory of interest

Choose a topic from microeconomics ., choose a topic from microeconomics th...

choose a topic from microeconomics that matters to you and find a recent news article covering that topic?

Graphing, I can''t figure out how to graph the aggregate consumption functi...

I can''t figure out how to graph the aggregate consumption function and the aggregate saving function

Floating exchange rates, Floating exchange rates There are two basic s...

Floating exchange rates There are two basic systems that can be used to determine the exchange rate between one country's currency and another's: a floating exchange rates (al

Explain about the specification of economics environments, Explain about th...

Explain about the specification of economics environments. Specification of Economic Environments: The primary step for studying an economic issue is to identify the econom

Expected utility - consumer choice involving risk, Expected Utility: T...

Expected Utility: Theory Assume that a utility index exists which conforms to the five axioms. The expected utility for the two-outcome lottery L = (P, A, B) is given by,

What is fait money, Fiat money is what is regular in modern economic system...

Fiat money is what is regular in modern economic systems.  Fiat money is money that is described as legal tender by either a government or some organization with the authority to e

Automobile industry., Write an objective analysis paper on the economics of...

Write an objective analysis paper on the economics of outsourcing and insourcing production by businesses. Please make sure you have a thesis (a main point that you are making) and

Is lm model, why slopes of is and lm curves affect effectivness of fiscal a...

why slopes of is and lm curves affect effectivness of fiscal and mnetary policy?

Write Your Message!

Captcha
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