Lars consumes only potatoes and herring when the price of

Reference no: EM13378396

Lars consumes only potatoes and herring. When the price of potatoes was 9 crowns per sack and the price of herring was 5 crowns per crock, he spent his entire income to buy 5 sacks of potatoes and 10 crocks of herring per month. Now the government subsidizes potatoes. Market prices haven't changed, but consumers get a subsidy of 5 crowns for every sack of potatoes consumed. To pay for this subsidy, the government introduced an income tax. Lars pays an income tax of 20 crowns per month. If s is the number of sacks of potatoes and c is the number of crocks of herring, what is Lars's new budget equation?

Reference no: EM13378396

Questions Cloud

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

For each level of output calculate this manufacturers : for each level of output calculate this manufacturers marginal cost mc for convenience place the marginal cost between

For each level of output calculate the variable cost vc for : for each level of output calculate the variable cost vc. for each level of output except zero output calculate the

Suppose a business experiences a sudden increase in its : suppose a business experiences a sudden increase in its fixed costs. for example suppose property taxes increase

Compared to the gini coefficient for income distribution : compared to the gini coefficient for income distribution the value of the gini coefficient for the distribution of

User Account

All Pages