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?
Illustrate what evidence does GI present to support the view that Canada had entered a recession
For each year from 2006 to 2009, calculate the dividend yield, the capital gains yields, and the total return to the stock. Express your calculations in percentage terms.
An airline transportation consultant offers the CEO of Blue Star struggling new commercial airline company
calculate velocity of money when price level is 10, national quantity of output is $200 billion and money supply is $250 billion Answer must be in detail Explain how Explain how you got answer.
Compute how this policy affects consumer surplus, and the cost of pollution. Would you recommend this policy.
Estimate the regression coefficients using ordinary least squares also interpret them. Predict the weekly sales for a store with 10 feet of shelf space situated at the back of the aisle.
Some businesses will examine their pricing structure and modify it in order to maximize revenue, either by raising or lowering price. Why organization chosen lower prices to increase revenue.
Illustrate what role did the policies of various governments play in the influencing the international expansion strategies of both McDonald's and Wal-Mart.
By how much should domestic auto-makers increase the cost of automobiles if they wish to increase sales by 5 percent next year.
suppose that you invest $100 today in a risk-free investment and let the 4 percent annual intrest rate compound. Rounded to the full dollars, what will be the value of your investment 4 years from now?
Illustrate what if accidents costs decrease with precaution. Explain how does this affect efficient level of precaution. Explain.
Suppose that the nominal rate of interest is holding steady at 8 percent even as the anticipated rate of inflation rises.
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