What combination of t and m will you choose

Assignment Help Business Economics
Reference no: EM135383

Q1. You have $2000 to spend on entertainment this year. The price of a day trip (T) is $40 and the price of pizza and a movie (M) is $ 20. Suppose that your utility function is T1/3 and M2/3. (a) What combination of T and M will you choose? (b) Suppose that the price of day trip rises to $80. How will this change your decision making?

Q2. Consider the following regression model:
1/yi = b1+b2(1/xi)+ui
(a) Is this a linear regression model?
(b) How would you estimate this model?
(c) What will be the behaviour of Y as X tends to infinity
(d) Give an example where such a model will be appropriate

Reference no: EM135383

Reviews

Write a Review

 

Business Economics Questions & Answers

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Quantity increase or decrease depends on demand

The equilibrium quantity increase or decrease depends on Demand

  Determine the quantity demand and the quantity supplied

Determine the quantity demanded, the quantity supplied, and the magnitude

  What conclusions can be drawn about market allocations

Use indifference curves to distinguish between income and substitution effects, using the above techniques explain why the demand curve slope downwards, What are the main criteria for designing a tax system, To what extent do you think the national..

  Definitions of management quoted from authors

Similarities in the definitions of management quoted from authors of management textbooks

  Most serious disadvantage of globalization

Select the most serious disadvantage of globalization (in your opinion) and make at least one recommendation

  When would it make sense for a factory

When would it make sense for a factory that is losing money to remain in operation

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Draw a graph of the market for chewing gum

Draw a graph of the market for chewing gum. What are the equilibrium price and quantity? Mark the equilibrium price and quantity in the graph.

  A local community voting to raise property taxes

A local community voting to raise property taxes to increase school expenditures

  The coca-cola company has 40% of the cola market.

The Coca-Cola Company has 40% of the cola market. Determine the probability that a sample proportion

  Firms raise capital from investors

Firms raise capital from investors by issuing shares in the primary markets

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