Consider the potential voluntary exchange between two

Assignment Help Microeconomics
Reference no: EM13388940

Consider a potential, voluntary exchange between two people. Assume that both have complete info about each other's preferences and that there are no transaction costs. Consumers A and B have between them 9 units of X and 15 units of Y. initially, A has 6 of X and 10 of Y and B has 3 of X and 5 of Y. Consumers A's marginal rate of substitution of X for Y is 2 and B marginal rate of substitution of X for Y is 1/3.

A) is there room for a mutually beneficial, voluntary exchange?

B) if so, determine which consumer would trade for more X and which for more Y

C) if trade takes place! can you explain the terms of trade?

Reference no: EM13388940

Questions Cloud

Crypton electronics has a capital structure consisting of : 1.crypton electronics has a capital structure consisting of 43 common stock and 57 debt. a debt issue of 1000 par value
Could recycline easily change its organizational culture if : 1q. what are some visible aspects of recyclines culture that reflect the companys values and commitment to green
Financial statement preparers have two choices in preparing : financial statement preparers have two choices in preparing the statement of cash flows the indirect method and the
What is the corporate university model approach to the : 1 what is the corporate university model approach to organizing training.2 explain the business embedded model.3
Consider the potential voluntary exchange between two : consider a potential voluntary exchange between two people. assume that both have complete info about each others
How do your personal ethical values and principles drive : 1q. how do your personal ethical values and principles drive your reaction?2q. what are the implications to stakeholder
Describe the balance scorecard and metrics drawn from this : 1 explain the balance scorecard and metrics drawn from this to create a metric for training.2 explain the connection
Discuss the advantages and disadvantages of each decision : 1q. identify the ethical and legal issues of which albert needs to be aware.2q. discuss the advantages and
Could an investor beat the stock market and generate a : could an investor beat the stock market and generate a superior return with companies that have formulated and

Reviews

Write a Review

Microeconomics Questions & Answers

  1 if the economy is in equilibrium and suddenly the level

1. if the economy is in equilibrium and suddenly the level of planned investment increases by 2 billion national income

  What distortions would appear in the economy

Suppose a special tax was introduced that used the value of one's automobile as the tax base. Each person would pay taxes equal to 10 percent of the value of his or her car. What distortions do you think would appear in the economy if such a tax w..

  Curve for films likely to be horizontal or upward sloping

An increase in the demand for video films also increases the salaries of actors and actresses. Is the long-run supply curve for films likely to be horizontal or upward sloping? Explain.

  What is the standard deviation of the investment

An investment opportunity will pay $10 with a 20% probability, $20 with a 40% probability, $30 with a 30% probability, and $40 with a 10% probability. what is the standard deviation of the investment?

  Use of the resolution trust corporation (rtc)

The commission paid by the RTC to the company to sell these homes is a flat rate of $2,000 per unit sold,rather than the customary commission that is based on the sale price of a home.

  Economists have observed that spending on restaurant meals

Economists have observed that spending on restaurant meals declines more during economic downturns than does spending on food to be eaten at home. How might the concept of elasticity help to explain this phenomenon?

  Kalvin crook is contemplating a life of crimenbsp if he

kalvin crook is contemplating a life of crime.nbsp if he commits a crime and does not get caught he stands to gain

  1what economic problem is the nation facing2what would be

1.what economic problem is the nation facing?2.what would be the goals of your fiscal policy?3.what exact fiscal policy

  What is the cost to government for imposing the estate tax

What is the cost to government for imposing the estate tax and what is the cost to the taxpayer for imposing the estate tax on him?

  What do you think the elasticity is

What kind of consumers buy this product? Are there targeted marketing campaigns to specific groups of consumers?

  Describe the analogies used by kao tzu and mencius

Describe the analogies used by Kao Tzu and Mencius to express their differing views on the nature of being human. Then, create an analogy of your own that you think accurately reflects what it means to be human.

  1suppose that ambers demand for gasoline is given by g

1. suppose that ambers demand for gasoline is given by g 1000 - 200pg where g stands for gallons of gas and pg

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