The marshallian demand curve for normal good

Assignment Help Business Economics
Reference no: EM131387485

For an individual who consumes two of the good X and Y, the marshallian demand function for X is flatter than the Hicskian demand function for X if X is a normal good.

Why is this false? Isn't it ALWAYS correct to say that for a normal good, Compensated demand curve is steeper than the Marshallian demand curve for a normal good.

Reference no: EM131387485

Questions Cloud

Make the highest possible grade in your economics class : A 10 percent reduction in price that leads to a 5 percent increase in the amount purchased indicates a price elasticity of more than 1. Respond to the following questions: If you really like pizza, should you try to consume as much pizza as possible?..
Design the control for a sequential 4-bit multiplier : Draw a Mealy machine state diagram for a 4-bit multiplier. The inputs are S (a multiply start signal) and M (the low-order bit of the multiplier). The outputs are the Sh, Ld, and Cl signals.
What is the current interest rate : The Money Supply = 425 and Money Demand = 400 - 500r + .75Y where r = interest and Y = income. Equilibrium interest rate is found by setting MS = MD (see power point notes, Example Money). The current income (GDP) level is $3,600. What will the inter..
How muc would you be willing to pay for one share : UPS preferred stock pays $2 in annual dividends. If your required rate of return is 17.00 percent, how muc would you be willing to pay for one share of this preferred stock?
The marshallian demand curve for normal good : For an individual who consumes two of the good X and Y, the marshallian demand function for X is flatter than the Hicskian demand function for X if X is a normal good. Why is this false? Isn't it ALWAYS correct to say that for a normal good, Compensa..
Communicate the job analysis process : In regards to the job analysis process whose responsibility is it to ensure a clear communication plan is implemented? Who in the HR department should communicate the job analysis process and why?
Who if anyone is liable : The carpenter brought suit against the corporation and the promoter for the amount that the promoter agreed would be paid to him. Who, if anyone, is liable?
Has she a cause of action against nimocks : C. A. Nimocks was a promoter engaged in organizing the Times Printing Company.- Has she a cause of action against the Times Printing Company?- Has she a cause of action against Nimocks?
Discuss your definition of supply chain management : In no less than one paragraph discuss your definition of Supply Chain Management and its role in a company's ability to compete effectively in the market

Reviews

Write a Review

Business Economics Questions & Answers

  What is the social optimum quantity and price

what is the social optimum quantity and price. If the government uses a tax to get producers to internalize the externality what is the net price recieved by producers

  What factors place check on teachers bargaining power

During the fall 2012, public school teachers in Chicago went out on strike over, among other things, salary and pay systems, performance reviews based on standardized test scores, and job protection for laid off teachers. Some people argued that the ..

  How would you go about putting together such campaign

As an intern for Dunkin’ Donuts, you have been asked to develop a social media campaign for a new glazed muffin. The objective of the campaign is to increase awareness and trial of the new line of muffins. How would you go about putting together such..

  Growth without diminishing productivity of capital

Growth without diminishing productivity of capital suppose that the production function is Y=AK. What is the condition for the growth rate of capital per worker, ?what does the s*(y/k) curve look like? What are the growth rates of capital and output ..

  Calculate money supply using simplified definition method

The questions on this homework deal with an economy called Economica. Calculate the money supply (M1) using the "simplified definition method." Assume the information given here is the only relevant information. Carefully follow all numeric instructi..

  What does this imply for elasticity of demand for cigarettes

The decline in cigarette sales was estimated at 8 percent. What does this imply for the elasticity of demand for cigarettes? Explain?

  Calculate price elasticity when less consumers enter market

calculate the price elasticity when consumers expect price to increase tomorrow for Good X leading to an increase of 3 lbs. calculate the price elasticity when more producers enter the market of Good X leading to an increase of 3 lbs. calculate the p..

  Equation of the aggregate demand curve

Please help with f) and g) determined the correct answers consider the following economy.Derive the equation of the aggregate demand curve AD. [Hint: Replace the equilibrium interest rate in either the IS or LM function. This should give you the AD c..

  Calculate the price elasticity of demand when price

Calculate the (point) price elasticity of demand when price is $100. Is demand elastic or inelastic? Calculate the (point) price elasticity of demand when price is $700. Is demand elastic or inelastic?

  What will happen to the number of firms-the market supply

W hat will happen to the number of firms, the market supply, and the price of the good as we move from the short run to the long run?

  Should the advertising budget be changed for upcoming year

Should the advertising budget be changed for the upcoming year? How should it be done? Should you develop a new product for an existing product line? What must you decide?

  Transactions deposits-total reserves-lending capacity

In December 1994 a man in Ohio decided to deposit all of the 8 million pennies he’d been saving for nearly 65 years. (His deposit weighed over 48,000 pounds!) With a reserve requirement of 12.5 percent, what will be the cumulative change for the bank..

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