Casper consumes cocoa and cheese cocoa is sold in an

Assignment Help Econometrics
Reference no: EM13378400

Casper consumes cocoa and cheese. Cocoa is sold in an unusual way. There is only one supplier, and the more cocoa you buy from him, the higher the price you have to pay per unit. In fact y units of cocoa will cost Casper y2 dollars. Cheese is sold in the usual way at a price of 2 dollars per unit. Casper's income is 20 dollars and his utility function is U(x, y) = x + 2y, where x is his consumption of cheese and y is his consumption of cocoa.

a. Sketch Casper's budget set and shade it in.

b. Sketch some of his indifference curves and label the point that he chooses.

c. Calculate the amount of cheese and the amount of cocoa that Casper demands at these prices and this income.

Reference no: EM13378400

Questions Cloud

1 the presence of diminishing returns to capital doubling : 1. the presence of diminishing returns to capital doubling the amount of physical capital available for one worker to
Because of the great recession applications to the : because of the great recession applications to the supplemental nutritional assistance program snap soared.the program
Wooldridge using data from 1988 for houses sold in andover : wooldridge using data from 1988 for houses sold in andover massachusetts from kiel and mcclain 1995 the following
Max has a utility function ux y 2xy 1 the prices of x and : max has a utility function ux y 2xy 1. the prices of x and y are both 1 and max has an income of 20.a. how much of
Casper consumes cocoa and cheese cocoa is sold in an : casper consumes cocoa and cheese. cocoa is sold in an unusual way. there is only one supplier and the more cocoa you
Jims utility function is ux y xy jerrys utility function : jims utility function is ux y xy. jerrys utility function is ux y 1000xy 2000. tammys utility function is ux y xy1
Mac rowe doesnt sweat the petty stuff in fact he just : mac rowe doesnt sweat the petty stuff. in fact he just cannot detect small differences. he consumes two goods x and y.
Felicity is studying economics and political science she : felicity is studying economics and political science. she can read 30 pages of political science per hour but only 5
Lars consumes only potatoes and herring when the price of : lars consumes only potatoes and herring. when the price of potatoes was 9 crowns per sack and the price of herring was

Reviews

Write a Review

Econometrics Questions & Answers

  How to replace toll booths on a toll road in the city

A city engineer knows that she will need 25 million in 3 years to replace toll booths on a toll road in the city. Traffic on the road is estimated to be 20 million vehicles per year. How much per vehicle should the toll be to cover the cost of the..

  Determine the after-tax net present worth of the assets

speciality machining inc bought a new multi turret turning center for $250,000. the machine generated new revenue of $80,000 per year. operating costs for the machine averaged $10,000 per year.

  Determine the cross elasticity of lorenas demand

Lorena likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Lorena's income and the cost of other types of entertainment-in particular, how much it costs to go see a movie ..

  What is total number of workers that will be added to city a

Newton exports all their products outside the city and Garfield only sells their products within the city. Newton experiences growth, so it hires 100 more workers, all of whom come to reside in city A.

  Derive the jabobs budget constraint equation

If Jacob receives by consuming ice-cream cone (X) and hamburger (Y) at Burger King is represented by the utility function U(X;Y) = XY. In addition, the per-unit prices of ice-cream cone and hamburger are $1 and $3 respectively

  What happens to equilibrium y if ig changes to 10

ASSUME THAT THE CONSUMPTION SCHEDULE FOR A PRIVATE OPEN ECONOMY IS SUCH THAT CONSUMPTION C = 50 + 0.8Y. ASSUME FURTHER THAT PLANNED INVESTMENT Ig AND NET EXPROTS Xn ARE INDEPENDENT OF THE LEVEL OF REAL GDP AND CONSTANT AT Ig = 30 AND Xn = 10.

  Determine the total project completion time

Charlie Cook was able to determine the activity times for constructing his chemical contaminant tracking machine. A) Cook would like to determine ES, EF, LS, and LF for each activity. Here are the activity times

  What is the minimum level of the price of x1 compatible

the utility function (x1,x2)= (x1+1)(x2+4). The price of x2 is $1. Lee spends all his income to buy 6 units of x2 and no x1. What is the minimum level of the price of x1 compatible with these facts

  What is the annual equivalent expense during years

Major overhaul expenses of $5,000 each are anticipated for a large piece of earthmoving equipment. The expenses will occur at EOY four and will continue every three years thereafter up to and including year 13.

  How many units will the consumer buy in total

Suppose that individual demand for a product is given by QD = 8000 - 10P. Marginal revenue is MR = 800 - 0.2Q, and marginal cost is constant at $20. There are no fixed costs. The firm is considering a quantity discount. The first 300 units can be ..

  What is difference of the total interest paid over 5 years

Adrian is about to borrow $2350 from his uncle. He has an option to repay the loan at the end of the year 5 with 10.75% interest per year or with 5% interest per year compounded annually. What is the difference of the total interest paid over 5 ye..

  Compute the unit manufacturing cost for the daytime shift

Venus Computer can produce 23,000 personal computersa year on its daytime shift. The fixed manufacturing costs per yearare $2million and the total labor cost is $9,109,000. To increaseits production to 46,000 computers per year

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