sam's utility over x and y is given by the U= 10x.y. The marginal utility of each good is given by : MUx=5y and MUy=5x. a) Draw sam's indifference curve representing a utility level of 100. b) is sam's preferences well behaved? why or why not?
Q: What is a production possibility curve and explain points of efficiency, inefficiency, and not…
A: The production possibility curve shows the different combinations of two goods that can be produced…
Q: Player 1 Up Down [Select] Left 2,4 6,5 Player 2 In the above game, player 1 would play [Select]…
A: Game theory refers to the study of mathematical models of strategic interactions among rational…
Q: Calculating Price Elasticity Qd = 30 – 3*P P = 2 P = 5 P = 8 P = 6 Calculate elasticity of the…
A: Price elasticity refers to the percentage change in the quantity demanded for a given percentage…
Q: Jane and Sara are competing orange juice salespersons in Amherst. Their stands are next to each…
A: When two sellers compete in price it formulates into a Bertrand duopoly game where both the seller…
Q: Using the Long Run Average Cost curve for a Monopolistic Competitive firm below answer questions 2a…
A: Given, Monopolistic competitive market are those market where there are many sellers selling…
Q: Q1: Determine the Price Demand eqution Price 40 > 20 40
A: The demand curve depicts the inverse relationship between the price and quantity demanded of a…
Q: Electricity is produced with water according to the function: E = 5 + 5W-1W² where E = kilowatt-hour…
A: Electric power is the speed at which work is accomplished or energy is transformed into an…
Q: Suppose that one factory inputs its goods from two different plants, A and B, with different costs,…
A: Given that, Inputs of the factory from the plant A=4 Inputs of the factory from the plant B=7…
Q: Figure 7-2 P2 P1 Price A с D Q1 B Q 8 Supply Quantity
A: Producer surplus refers to the benefits a producer gets (in monetary terms) by selling its products…
Q: Show necessary and appropriate steps. No credits will be given to answers without showing necessary…
A: A market is defined as the total number of buyers and sellers in a certain area or region. The…
Q: How does healthcare system in country affect economic development?
A: A health framework, medical care framework, or medical care framework is an association of…
Q: Use the Fed and the banking system T-accounts to describe the effects of a Fed sale of $200 million…
A: The Central bank is the monetary authority of an economy, which is responsible for the monetary…
Q: A gardener is trying to maximize profit by growing tomatoes (T) and carrots(C) with fertilizer(F).…
A: In economics, elements of production are the resources people utilize to manufacture goods and…
Q: . The demand curve for a product is given by Q=1,000 - 2P, +.02P where P, = $400. a. What is the own…
A: Price elasticity of demand measures the quantitative change in demand following change in the price…
Q: As a firm decreases its price more and more, what would be true about the demand elasticity that…
A: Introduction Contribution margin indicates that it is a term describing profitability. Contribution…
Q: nflation stated for the two projects is 2.5%. When performing a marginal analysis comparing two…
A: Inflation is defined as the rate of increase in the prices of goods and services during a given…
Q: Compared to predicted inflation of 3.2%, the risk-free rate is 4.8%. What will the new risk-free…
A: The rate of return on a hypothetical investment with regular payments made over a set period of time…
Q: For a monopoly, the demand and cost functions are: Demand: Q = 100 -0.20P Cost: TC= 10 + 60Q Solve…
A: A monopolist always maximizes profit where: Marginal Cost = Marginal Revenue MC = MR Total…
Q: If an electric appliance present worth is P120,000.00 and is being paid P5000.00 indefinitely,…
A:
Q: A house and lot can be acquired by a down payment of P500,000 and a yearly payment of P100,000 at…
A: Introduction: It is given that the down payment = P500000 Yearly payment = P100000 The time period…
Q: 7. Use the following graph to answer questions a-f. a. What area represents consumer surplus before…
A: Consumer surplus is the difference between consumer willingness to pay and market price whereas…
Q: If the current real GDP growth rate and population growth rate are maintained, real GDP per person…
A: Rise in the production of goods and services on the sustainable basis is known as economic growth.…
Q: Justify and defend the use of cost-benefit analysis in measuring utility.
A: A cost-benefit analysis refers to the systematic process that firms use to analyze which decisions…
Q: Given the total cost equation: level of Q yields the minimum cost of production? TC = 32 + 2Q², what…
A: Average total cost is implied as the total of all production costs divided by the total quantity of…
Q: 4. Assume no government and no international trade in a country. Show that measured savings is…
A: The buying and selling of goods and services between businesses in various nations is referred to as…
Q: 3. How do you compare the inflation rate in 2021 to the inflation rate in 2020? a The inflation rate…
A: The inflation rate measures the increase in prices over time. It can be calculated using CPI.…
Q: How can a hotel become better in the short run? And in the long run?
A: In economics the long run refers to a time period wherein all factors of production and costs will…
Q: A new stereo for a car is generally priced in the $150 range. A new car generally is generally…
A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…
Q: 4. Discouraged workers Which of the following statements correctly describe discouraged workers? (If…
A: Some unemployment occurs when the economy is producing at a lower capacity than it is capable of.…
Q: 3 What is the total price of a boat with an original price of $12773, if it is sold at a 20%…
A:
Q: The following table shows the annual average data on the employment status of the U.S. civilian…
A: Introduction: Unemployment refers to the situation when the number of job seekers is more than…
Q: Qd = 1,600 - 125P Qs = 440 + 165P Quantities are measured in millions of bushels; prices are…
A: As given Demand: Qd = 1,600 - 125P Supply: Qs = 440 + 165P Equilibrium condition is that condition…
Q: QUESTION 11 A means that the government is spending as much as what it is collecting in taxes.…
A: A _ means that the government is spending as much as what it is collecting in taxes.
Q: Fill in the table using the given data. Country Canada Netherlands Japan Working-Age (Civilian…
A: We use the following formulas to calculate the missing information: 1) Civilian labour Force =…
Q: Factors Affecting Pricing Organizational and marketing objectives Channel member expectations…
A: Pricing decision are businesses decisions while setting costs for their items or administrations.…
Q: 4. At an annual effective interest rate of i, i > 0, both of the following annuities have a present…
A: An immediate annuity is a special type of annuity where one have to pay a specific amount today and…
Q: What are the pros and cons of the creation of a medical marijuana monopoly? *What are the pros and…
A: Monopoly is the market where the producer enjoys the privilege of determining the price in the…
Q: The elasticity of factor demand will be greater the: Select one: a) fewer the amount of capital…
A: Elasticity is a concept used in economics to describe the change in amount required or provided as a…
Q: Suppose that the annual rates of growth of real GDP in Econoland over a five-year period were as…
A:
Q: Why do these goods have the elasticity that they do? Inelastic Coffee, Elasticity: 0.25 Elastic…
A: Income elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…
Q: In macroeconomics, we imagine that there is one large labor market. What does that market determine?…
A: Introduction Market is a place or an environment where a buyer or customer can purchase the goods…
Q: Leah's Pizza delivers several types of pizza, which is sold for 499 pesos each and costs 300 pesos…
A: The anticipated value of a financial investment's return is known as the anticipated return (or…
Q: MMCM purchased an equipment which is going to be used by the students for their laboratory. To…
A: The present value of an annuity alludes to how much money would be required today to fund a series…
Q: Consider the foreign exchange market. For each of the scenarios below, answer the following…
A: The price of dollar relative to the currency of other countries is determined in the foreign…
Q: When the quantity of resources for production increases, the production possibility curve Select…
A: Production possibility frontier shows the different combinations of two goods that can be produced…
Q: A horizontal supply curve with no slope is considered?
A: supply curve, in economic matters, realistic portrayal of the connection between item cost and the…
Q: Over the 120 years from 1900 to 2020, the average growth rate of U.S. real GDP per person was 2…
A: The value of final goods and services produced in a year is known as the nominal GDP. When the…
Q: Private sperding (billions) 8300 800 2 20 11 $20 100 30 100 120 140 160 180 200 GDF (hillens) (CIE…
A: A private and closed economy consists of households and firms or businesses. A private and close…
Q: Suppose that 50,000 dollars from a retirement account is invested in a large cap stock fund. After…
A: Buying products that aren't consumed right away but will be used to make money later on is what is…
Q: Suppose the present value of a series of payments is equal to R84 398 and the (constant) nominal…
A: Present value will be calculated as the value of series of payments (PMTs) in future expressed as it…
sam's utility over x and y is given by the U= 10x.y. The
a) Draw sam's indifference curve representing a utility level of 100.
b) is sam's preferences well behaved? why or why not?
Step by step
Solved in 2 steps with 1 images
- Biwei’s utility function U=4XY, where X is consumption of beer and Y is consumption of pizza. For this utility function, the marginal utility of X is MUx = 4Y; the marginal utility of Y is MUY = 4X. 1) Suppose Y = 3. Calculate Biwei’s utility for X = 2, 3, 10, and 11. For a given level of Y, does good X display diminishing marginal utility? 2) Suppose X = 3. Calculate Biwei’s utility for Y = 2, 3, 10, and 11. For a given level of X, does good Y display diminishing marginal utility?The price of goods A and B are 20 and 10 respectively. given that the marginal utility of commodity A is 10. what is the marginal utility of B if the consumer is at equilibrium.Suppose there are two goods, x and y. If one good has a negative price, and the other good has a positive price, then the slope of the budget constraint will be positive. is this true or false?
- I. You only consume two goods and your preferences are represented by utility function U(x₁, x₂) = (x0.5 + x2.5)² for x₁ > 2 and x₂ > 0. 1. Find your marginal utility for each good. Simplify your answers. Based on your answers, are your preferences strictly monotonic? Why or why not? 2. Do your preferences obey the law of diminishing marginal utility for each good? Why or why not? If not, what is the behavior of your marginal utility for each good? Use calculus and words to answer this question.compute the marginal utility of good X (MUX) and the marginal utility of good Y (MUY).a. U=U ( X ,Y )=3 X1 /2+5Y1/ 2Pete consumes goods 1 and 2. Pete thinks that 3 units of good 1 is always a perfect substitute for 4 units of good 2. Which of the following utility functions is the only one that would not represent Pete's preferences? A B D E U (x₁,x₂) = 40x₁+30x - 10000 2 U(x₁,x₂) = 4x₁+3x₂+ 1000 2 U (x₁,x₂) = min {4x₁, 3x₂} U(x,x)=16x² +24xx₂+9x² More than one of the above does not represent Pete's preferences.
- Donald derives utility from only two goods, carrots (X) and donuts (Y). His utility function is as follows: U(X, Y) = XY. Donald has an income (M) of $120 and the price of carrots (PX) and donuts (PY) are both $1. a) Find the marginal utility that Donald receives from carrots (MUX) and from donuts(MUY) b) Determine the marginal rate of substitution of X for Y (MRSXY)c) How does MRSXY change as the firm uses more X, holding utility constant.d) What is Donald's budget line and relative price (PX/ PY )e) What quantities of carrots and donuts will maximize Donald's utility?Utility is given by the function U(x,y) = x0(y + 4)0.3. a. Calculate the marginal utility of x in terms of x and y. Simplify. b. Calculate the marginal utility of y in terms of x and y. Simplify. c. Calculate the marginal rate of substitution in terms of x and y. Simplify.Tom consumes only beer (B) and whisky (W). His utility function is U(B,W) = 2B + 5W, where B is the quantity of beer and W is the quantity of whisky. The price of beer is PB = 2, the price of whisky is PW = 5, and Tom’s income is M = 20 dollars. (a) Obtain the equation of Tom’s indifference curve for the utility U > 0 with beer in the horizontal axis and whisky in the vertical axis. What is the magnitude of the slope of Tom’s indifference curves? Explain the economic meaning of this magnitude. Are Tom’s indifference curves vertically parallel? Explain. (b) Obtain the equation of Tom’s budget line. What is the magnitude of the slope of the budget line? What is the economic interpretation of this magnitude? Does Tom consume beer at the current prices (indicated above)? Explain in detail. (c) Are Tom’s preferences quasi-linear? Are they homothetic? Justify each of your answers. (d) Tom’s brother, Jerry, has a utility function given by
- Tom consumes only beer (B) and whisky (W). His utility function is U(B,W) = 2B + 5W, where B is the quantity of beer and W is the quantity of whisky. The price of beer is PB = 2, the price of whisky is PW = 5, and Tom’s income is M = 20 dollars. (a) Obtain the equation of Tom’s indifference curve for the utility U > 0 with beer in the horizontal axis and whisky in the vertical axis. What is the magnitude of the slope of Tom’s indifference curves? Explain the economic meaning of this magnitude. Are Tom’s indifference curves vertically parallel? Explain. (b) Obtain the equation of Tom’s budget line. What is the magnitude of the slope of the budget line? What is the economic interpretation of this magnitude? Does Tom consume beer at the current prices (indicated above)? Explain in detail. (c) Are Tom’s preferences quasi-linear? Are they homothetic? Justify each of your answers. (d) Tom’s brother, Jerry, has a utility function given by V (B, W ) = max{B, W }. (d.1) Are Jerry’s…U(x, y) = xayb A consumer maximises utility subject to a budget constraint M = Pxx+Pyy Where px is the price of good x, py is the price of good y and M is the budget available. a. Derive an expression for the marginal utility of x. Under what condition is the marginal utility diminishing. b. Derive an expression for the marginal utility of y. Under what condition is the marginal utility diminishing.Question 2: Kevin's utility function is given by U=3x+2y. a. Find Kevin's demand functions for X and Y b. Show graphically Kevin's optimal point when m=120, Px=2, Py=1. Explain in words why he chooses this point. c. Draw the Engle curve for x.
