Find the equilibrium consumption of steaks and leisure

Assignment Help Business Economics

Reference no: EM13999797

Suppose there is a single consumer with U = Sl, where S is steaks and l is leisure time.

The Consumer is endowed with one unit of leisure time, and the production for steaks is S = l / c , where c >0 is a constant.

Assume that the government can observe the leisure that is consumed. It taxes leisure consumed at t per unit of leisure and returns the collected ‘revenue’ to the consumer.

Find the equilibrium consumption of steaks and leisure, and calculate the welfare loss (in terms of utility) of this tax. Explain your answer in words with reference to an appropriate diagram.

Reference no: EM13999797

Questions Cloud

Calculate the transition matrix element : For identical spin 0 particles in non-relativistic QFT and non-interacting Hamiltonian - definite momentum and energy

How do these methods impact data analysis : Do you feel that these method(s) are appropriate? Why?

Write java program- takes all lines input to standard input : Write a short Java program that takes all the lines input to standard input and writes them to standard output in reverse order. That is, each line is output in the correct order, but the ordering of the lines is reversed.

Cause something horrible to happen : Finally, he has to press the BIG RED BUTTON (which only works when the two components are joined together) in order to cause something horrible to happen. Evil Robot's internal systems have been constructed using the situation calculus and a theor..

Find the equilibrium consumption of steaks and leisure : Suppose there is a single consumer with U = Sl, where S is steaks and l is leisure time. The Consumer is endowed with one unit of leisure time, and the production for steaks is S = l / c , where c >0 is a constant. Find the equilibrium consumption of..

Text discussion of electronic monitoring : Please comment on this debate, using examples from the text discussion of electronic monitoring, romance in the workplace, employee drug testing, and employee honesty testing.

Definition of labor force participation rate : Because of the decreasing labor force participation rate of youths and the prime age group, the overall labor force participation rate is expected to decline. The participation rates of older workers are projected to increase, but remain significantl..

What is the compton shift in the photons wavelength : After a 0.839 nm x-ray photon scatters from a free electron, the electron recoils at 1.50 x 106 m/s. What is the Compton shift in the photon's wavelength? Through what angle is the photon scattered?

User Account

All Pages