User Account

All Pages

Are the consumer preferences homothetic

Assignment Help Basic Computer Science
Reference no: EM131702308

Suppose a consumer's demand for good 1 is given by x1(p1,p2,m) = m/(2(p1 + p2), and she spends all her income on these two goods.

(a) Find the consumer's demand for good 2.

Now, let the initial prices be p1 = 2 and p2 = 2, and let m = 48. Suppose the price of good 1 drops to p1 = 1.

(b) Is good 1 a normal good or inferior good? Ordinary or Giffen? Is good 2 a complement or substitute for good 1?

(c) Are the consumer's preferences homothetic?

(d) Calculate the change in the consumption of good 1 due to the income e?ect and substitution effect.

Reference no: EM131702308

Questions Cloud

Discuss leaders to effectively manage organizational change : As we approach the leadership ability in general and traits that are necessary, we must ask ourselves: "What skills and characteristics are needed for leaders
Journalize the entry to record the factory labor costs : The weekly time tickets indicate the following distribution of labor hours for three direct labor employees: Journalize the entry to record factory labor cost
Evaluate the effectiveness of the authors claim : Identify the author's claim. Evaluate the effectiveness of the author's claim. Identify and analyze the supporting evidence connected to the claim.
Would winston have been better off not challenging the party : Would Winston have been better off not challenging the party and keeping his rebellious thoughts to himself in order to preserve his personal safety
Are the consumer preferences homothetic : (b) Is good 1 a normal good or inferior good? Ordinary or Giffen? Is good 2 a complement or substitute for good 1?
Discuss federal occupational safety and health act : If the federal Occupational Safety and Health Act has regulations relating to the safe construction of steel sheds, might these regulations help strengthen.
Review the ohcs current state analysis of bc-drp strategy : Create a strategy with your recommendations in the form of a formal report. Review the listing of deficiencies identified in the current state analysis.
What appears to be a function of daydreaming : What appears to be a function of daydreaming, Psychologists call activities that require full awareness, alertness, and concentration:
Forbidding adultery between members of the sales staff : He requires his stores to enforce rules of conduct that include forbidding adultery between members of the sales staff.

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Calculate the speed of the corresponding random walk

Identify the binary tree with the set of all finite sequences of 0s and 1s. Let the conductance of an edge be x + 1 when its vertex furthest from the root ends in x, where x ∈ {0, 1}. Calculate the speed of the corresponding random walk

  Write a c program that swaps the first column of a matrix

Write a C program that swaps the first column of a matrix with the last column

  Impact does your chosen problem have on quality of life

How serious an impact does your chosen problem have on quality of life? What could you do to lessen the impact in your life or the lives of loved ones.

  International classification of diseases

Patient data is used in a variety of contexts by health care providers and organizations. From the diagnosis and treatment of patients to the reimbursement of the health care services delivered as part of patient diagnosis and treatment, health in..

  Legal aspects of information technology

This week, you examined the legal aspects of information technology in regards to intellectual property, copyrights, and illegal software.

  Good gui designer possesses

Determine the main attributes that you believe a good GUI designer possesses.

  Explaining reasonable values for items in risk register

Suggest reasonable values for the items in the risk register for this asset and threat, and provide justifications for your choices.

  Discussing the pros of deploying microsoft direct

Write an email to your boss discussing the pros (or cons) of deploying Microsoft's DirectAccess instead of keeping the legacy VPN solution. Explain what you'll need to get the solution in place and what benefits it'll provide to the remote staff.

  List each resource used at the end of paper in the reference

Write a 2 page research paper on recursion. Explain the concepts using at least one example. Use at least two resources (Wikipedia sources are not permitted) and list each resource used at the end of paper in the reference list section.

  Can you declare a final variable without supplying its value

This chapter contains several recommendations regarding variables and constants that make programs easier to read and maintain. Summarize these recommendations.

  Issues information technology

Locate a news article based on a recent event on ethical issues related to information technology. For example, Wikileaks, Snowden, etc...

  Is it sufficient to have a counter in the kernel

Is it sufficient to have a counter in the kernel that is incremented on each process creation, with the counter used as the new PID? Discuss your answer.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd