Substitution and income effects , Basic Statistics

Managers are very interested in how a consumer makes choice among alternatives. In this exercise, we ask you to consider the price of gasoline you may purchase to operate your automobile in any month and any alternatives available to you assuming your net income available to make those purchases. Also assume gasoline prices for your auto rose 100% during one difficult summer as our time period for the purpose of discussion. Explain, then, the following effects in terms of the income effect, or the substitution effect, or both effects:

  • You drove less and purchased less gasoline.
  • You ate out less often.
  • You spent less to maintain your automobile.
  • You took public transportation more often.
  • You bought a bicycle.
  • You did not take a vacation away from home.
  • You bought fewer cloths and made due with more around the home.
  • Construct a four-to-five page APA format paper based on the above issues. Use two external sources and demonstrate your understanding of the concepts by providing a graph of each effect as a figure in your paper. 


Posted Date: 3/22/2013 5:29:26 AM | Location : United States

Related Discussions:- Substitution and income effects , Assignment Help, Ask Question on Substitution and income effects , Get Answer, Expert's Help, Substitution and income effects Discussions

Write discussion on Substitution and income effects
Your posts are moderated
Related Questions
Define Agency solutions Every condition agency, office, board, commission, department, condition organization, or condition organization of degree, which includes all condition u

How does the t-distribution changes its shape with the change of the size of the sample?

You notice at the gym that it appears more women tend to work out together, while more men tend to work out alone.  To show whether this difference is significant, you collect data

Hugh Snore Bedding, Inc. has assets of $400,000 and turns over its assets 1.5 times per year. Return on assets is 12%. What is its profit margin (return on sales)?

Table 2: Mathematics Score/Jadual 2: Skor Matematik 27 37 30 28 39 25 45 28 32 28 26 38 31 30 47 41 a) Based on Table 2, organize the data into a frequency distribution by taking

. Good day, Using 4-inch pole caps and a Mettler M5 balance, I got all the values required in order to calculate the magnetic susceptibility of several inorganic compounds such as

Miller (2008) examined the energy drink consumption of college undergraduates and found that males use energy drinks significantly more often than females. To further investigate t

who is the mathematician who invented replacement theory of operation research