If the price of blue toy cars is 5 and the price of pink

Assignment Help Econometrics
Reference no: EM13379306

If the price of blue toy cars is $5 and the price of pink toy cars is $2, then which of the following consumers will make the same choices if their income is the same (assuming maximization of income)

Gloria, utility is U(b,p) = b^2 * p

Allison, utility is U(b,p) = b^(2/3) * p^(1/3)

Sam, utility is U(b,p) = (b-2) * (P-1)

Reference no: EM13379306

Questions Cloud

The growing use of reserves for future costs and losses : the growing use of reserves for future costs and losses impairs the significance of periodically reported income and
Airbus sold an a400 aircraft to delta airlines a us company : airbus sold an a400 aircraft to delta airlines a u.s. company and billed 30 million payable in six months. airbus is
Atlas anglers inc is considering issuing a 15-year : atlas anglers inc. is considering issuing a 15-year convertible bond that will be priced at its 1000 par value. the
You are the manager of a firm that produces and markets a : you are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. in
If the price of blue toy cars is 5 and the price of pink : if the price of blue toy cars is 5 and the price of pink toy cars is 2 then which of the following consumers will make
Consider a market where supply and demand are given qxs-10 : consider a market where supply and demand are given qxs-10 pxand qxd 56-2px. suppose the government imposes a price
Suppose demand and supply are given by qd 50 -p and : suppose demand and supply are given by qd 50 -p and qs12p-10.a. what are the equilibrium quantity and price in this
The commerce department reported receiving the following : the commerce department reported receiving the following applications for the malcom bardrige national quality award 23
The demand curve for product x is given by qxd460-4pxafind : the demand curve for product x is given by qxd460-4pxa.find the inverse demand curve.b.how much consumer surplus do

Reviews

Write a Review

Econometrics Questions & Answers

  Calculate total and partial productivity measure of labor

Various financial data for 2007 and 2008 follow. Calculate the total productivity measure and the partial measures for labor, capital, and raw materials for this company for both years. What do these measures tell you about this company 2007 2008

  Calculate the amount of the last payment

Earl obtained a loan for 22000 dollars. He will pay it back in 17 months with an interest rate of 8 yearly compunded monthly. Each payment will be $200 larger than the previous payment. Calculate the amount of the last payment.

  Ups freight plans to spend 100 million on new long-haul

ups freight plans to spend 100 million on new long-haul tractor-trailers. some of these vehicles will include a new

  Was the station owner an avowed profit maximizer

In 1981, a Boston-based gas station owner set the highest gasoline prices in the nation. During that summer, he charged $1.69 per gallon for unleaded gas during the daytime and $2.59 per gallon at night, when other downtown gas stations were close..

  Devise a pricing strategy to maximize the firms profits

As a manager if a chain of movie theaters that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves

  Compute the depreciation amount in the third year

An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000, and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years. Compute the depreciation amount in th..

  How much money will mary receive on august 1

Mary Lannoy plans to save money at her bank for use in August. She will deposit $50 a month, beginning on January 1 and continuing through August 1. If the bank pays ¾ % interest each month, how much money will she receive on August 1

  Determine the acceptability of each project at marr

Consider an investment project with the following cash flows: n Porject A Project B 0 -$150,000 -$120,000 1 $30,000 $25,000 2 $25,000 $15,000 3 $120,000 $110,000 A) Compute the IRR for each investment

  Find the equilibrium employment in the whole economy

Suppose there are 100 firms in the economy. Let us call them firm 1, firm 2, ..., and firm 100. For firm j (j=1,2,...,100) the labor demand (or equivalently MPN) is Nj = 1 - 0.02w where w is the real wage. Note that labor demand function for the w..

  State whether the confidence interval includes m

44 third grade students can be considered to be an SRS in asuburban school district with a sample mean of = 35.091. DPR scoresare approximately normal. Suppose the standard deviation ofscores in this school district is known to be σ = 11.

  By how much must consumption decline to occur

Suppose that every additional five percentage points in the investment rate (I/GDP) boost economic growth by one percentage point. Assume also that all investment must be financed with consumer saving. The economy is now assumed to be fully employ..

  Determine what is the new optimal choice

Assume that a person's utility function is U(x,y)=x^2y^2 (yielding MRS=y/x) The price of X is $2 and the price of y is $5. Income is $100. What is the optimal choice? If a quantity tax of $0.50 is placed on good x, what is the new optimal choice

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