Suppose the price of Xylophones is $3 and the price of Yoyos is $7. Robin's marginal utility of Xylophones is 15 and the marginal utility of Yoyos is 21. In order to maximize utility, Robin should O Buy fewer Xylophones and fewer Yoyos O Buy fewer Xylophones and more Yoyos Buy fewer Yoyos and more Xylophones O Continue to buy the same number of Xylophones and Yoyos.
Q: Which of the following depicts an overall balance of payments position in deficit? a. When current…
A: Dear learner you have posted multiple questions, as per our policy we have solved only first…
Q: Lower taxes represent a negative AD shock. O False O True
A: The primary means through which a government brings money into its coffers is via the imposition of…
Q: hat are some of the advantages of using a development metric? it allows for comparison across…
A: Metrics are quantitative evaluation metrics often used for evaluating, contrasting, and monitoring…
Q: Question #1: Consider a forest with 610,000 tons of standing timber and a growth rate of 55,000 tons…
A: "Since you have posted a question with multiple subparts, we will solve first three subparts for…
Q: It is commonly observed that cigarette companies advertise too much. This can be explained by the…
A: Advertising is a method that is used by the different firms to differentiate their products in the…
Q: A company produces very unusual CD's for which the variable cost is $ 11 per CD and the fixed costs…
A: Total cost is the sum of fixed and variable cost. Variable cost is the cost that vary with the…
Q: a) Selling LED lights will maximum profit. b) The selling price at the answer in part (a) is $ c)…
A:
Q: 5. Use the following graph to answer the following questions. Briefly explain the reason why you…
A: Cost is minimised at the point where the isocost curve and isoquant curves are tangent to each…
Q: w = 40, r = 40, AFC = 0.2 and ATC = 4.2. Based on this information, what is the firm's average…
A: In the short run, capital is fixed and labor can vary. So, money spent on capital is a fixed cost.…
Q: 13. For each of the following events in the market for natural gas, identify whether the event…
A: Supply refers to the quantity of a commodity that a seller is willingness to sell at a given price…
Q: If in the figure above price P1 equals $3.00, price P2 equals $14.00, price P3 equals $30.50, and…
A: The term "consumer surplus" refers to the difference between the utmost price a consumer is prepared…
Q: What are the four theories explaining the relationships of currencies, interest rates, and…
A: In this case, we have to find out the theories which explains the relationship between currencies,…
Q: Om1. 1. ______ capital is the sum of the resources a person possesses as a result of investments in…
A: ***Since the student has posted multiple questions, the expert is required to solve only the first…
Q: 21. Suppose the closed economy is in long-run equilibrium. Pessimism on the part of investors then…
A: Let's first understand both the concepts of multiplier impact and short run Phillip curve as…
Q: What is the wholesale cost of an item, if the retail cost is $37 and the amount of markup is $7? Use…
A: Retail is the sale of goods to final consumers and the units sold is individual unit of good.…
Q: QUESTION 1 1 MC ATC AVC OF Quantity Observe the graph above. Based on the original price being set…
A: Shut Down price: In the short run as the firm faces the total fixed cost as well. And a firm will…
Q: Haley used $200,000 from her savings account deposits as a down payment to buy a house. What…
A: A Medium of Exchange: The just alternative to utilizing money is to return to the bargain…
Q: (a) Suppose we have the following production function: Q= Suppose K is fixed in the short- run at…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…
Q: Helen has 3 liters of Cola and 9 Burgers. Alex, on the other hand, has 8 liters of Cola and 4…
A: Edgeworth boxes refer to the boxes that are a useful tool when considering the trade of 2 finite…
Q: Explain with cases why the economy of developing countries have more potential in swift growth than…
A: When compared to other nations, developed countries are typically thought of as having more advanced…
Q: 1. Complete the table on the right by computing for the values of average product and marginal…
A:
Q: Choose all the options below that demonstrate a contractionary fiscal policy. Select all that apply:…
A: Contractionary fiscal policy is a sort of fiscal policy wherein the public authority gathers more…
Q: Mickey consumes only two goods, X and Y. Assume that Mickey is not at a corner solution, but he is…
A: The consumer is in equilibrium when he maximizes his utility, given his income and market prices.…
Q: ABC Manufacturing has determined that the demand function for their heated socks is given by: D(p)…
A: Introduction: Elasticity of demand is the ability of the amount of a good or service to fluctuate in…
Q: In a situation of excess inflation, an increase in the overnight rate will lead to a(n): Select one:…
A: The overnight rate refers to the lending rate at which financial institutions, usually banks, lend…
Q: Are vaccines considered as public good? Show in graphical explanation or representation. 2.…
A: Since, multiple questions have been asked by you , we will solve first question for you. Please…
Q: A firm produces TVs and ovens with a joint cost function that takes the form: C(x,y) = 3x^2 + 2y^2 +…
A: The cost minimization problem of the firm is to minimize its cost function with respect to the…
Q: 2. MULTIPLECHOICE: A firm owner Sally meets her banker, Tom, to work out the details of a one-year…
A: The information which has been given is as follows:- Expected inflation by both = 3% Nominal…
Q: Demand: P-10-Q Marginal Revenue: MR = 10-20 Total Cost: TC = 3+Q+0.5Q² Marginal Cost: MC = 1 + Q The…
A: In monopoly , Monopolist will produce where MR = MC MR is the marginal revenue MC is the marginal…
Q: Question #2. Assume that an administered water district faces a marginal benefit curve for water…
A: Marginal benefit function : MB = -0.5Q + 1200 Total Cost function : Q2 + 200 Q Economically…
Q: The Ford Bronco cost $62,000. Assuming there are no hidden fees and the lease residual value is 79%.…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: K Suppose that Bill owns an automobile collision repair shop. The table below shows the quantity of…
A:
Q: 1.In income substitution effects acts in opposite direction, then the total effect on consumption is…
A: The income effect is the adjustment of the utilization of merchandise by shoppers in view of their…
Q: Is Price Elasticity of Demand always Negative? Give example when price elasticity of demand becomes…
A: "Demand in economics describes a relationship between different prices of a commodity and units of…
Q: Consider the graph above. Which is more elastic in equilibrium? The curves are equally elastic.…
A: Price elasticity calculates the percentage change in quantity demanded due to a percentage change in…
Q: The demand for hamburgers is given by Qd=10-p and the supply is Qs=4p-10, where pd and ps are,…
A: Provided information: According to the data given in the question, The demand function for…
Q: The short-run price elasticity of demand for gasoline is 0.5, and the long-run price elasticity of…
A: What is price elasticity of demand? Price elasticity of demand is the ratio of the percentage change…
Q: EXPLAIN..... In the long run, the unemployment rate is determined by ____. the rate of cyclical…
A: The unemployment rate is the percentage of the total labor force that is unemployed but actively…
Q: Refer to Table 13-1. What is total output when 5 workers are hired? a) 90 b) 185 Oc) -10 d) 225
A: In economics and in particular neoclassical economics, the marginal product or marginal physical…
Q: Initial Investment, Alternative 1,% -25,000 9.6 -35,000 15.1 -40,000 13.4 -60,000 25.4 20.2 -75,000…
A: Internal rate of return refers to the rate at which the discounted present value of the future cash…
Q: True or false. Monopolist can control the price.
A: A monopoly refers to a market in which there is only one seller that deals in a product that has no…
Q: Why does J.K. Galbraith believe that there will be an “inherent tendency” for public services to lag…
A: John Kenneth Galbraith develops the concept of the dependence effect, the idea that advertising not…
Q: When does the purchasing power of money decrease? Select all answers that are correct. Select all…
A: In economics, an inflationary gap is an amount by which the actual GDP is more than the potential…
Q: The table above shows Econland’s economy aggregate demand and aggregate supply schedules. Econland’s…
A: There is a recessionary gap when the actual output is less than the potential output. There is an…
Q: A: Suppose the initial demand at the price of $10 was 100. When the price rises to $12, the demand…
A: Price elasticity of demand is calculated as the ratio of the percentage change in quantity demanded…
Q: Explain how the Lorenz curve is used as a measure of Income Distribution. Is this a good tool? Why…
A: The Lorenz curve was created by American market analyst Max Lorenz in 1905. It is a graphical…
Q: Saxon Products, Incorporated, is investigating the purchase of a robot for use on the company’s…
A: The process of choosing the optimal investment option that would yield a larger profit is known as…
Q: In countries in which there is nonprice rationing for care, waiting time costs may be substantial.…
A: The practice of limiting the availability of some medical care to specific populations or all…
Q: Suppose we have many firms each with an individual supply curve of q=%2 P). Assume that firms have a…
A: The difference between the actual price received by producer and the least price producer receives…
Q: Last year you purchased a bond with an interest rate of 5 percent. Now the interest rate on the bond…
A: Bonds are debt instruments with long maturities with annual or semiannual interest rates to be paid…
Step by step
Solved in 3 steps
- Consider a local fast food restaurant. The following table shows the maximum price that Alex and Anna will pay for two products: chicken nuggets and fries. Alex Anna Are Alex and Anna's demands negatively or positively correlated? Explain. Table 2: Maximum Price Chicken Nuggets O Positively correlated as Alex wants to pay lower prices for both Chicken nuggets and fries. O Positively correlated as Anna wants to pay higher prices for both Chicken nuggets and fries. O Negatively correlated as Alex wants to pay lower prices for both Chicken nuggets and fries. O Negatively correlated as Anna wants to pay lower prices for both Chicken nuggets and fries. $1.50 $2.55 Fries $0.5 $1.0After analyzing the demand for his products, Ahmed realized that the demand for his products is inelastic. This means that, O a. the demand for his products are sensitive to price changes O b. it is not advisable to increase his price O c. the demand for his products are weak O d. it is fine to increase his pricePrice Keram H 1 1 4 Becky's D for Blueberries Demand Refer to the graph above to answer this question. The graph shows Becky's demand for blueberries which can be purchased in any quantities and sold at any price What is Becky's total willingness to pay for 6 kilograms of blueberries if the price of each kilogram of blueberries is $27 Multiple Choice O O O O O $12. Cannot be determined. $18. $6. $2
- Consider the following chart. What is the marginal utility per the price for the fourth unit of Chicken Fajitas? The price of a Chicken Fajita is $10. Quantity of Chicken Fajitas (1) 0 2 3₂ 4 5 6 7 O a.) +14 utils per dollar O b.) 1.9 utils per dollar Oc.) +1.0 utils per dollar d.) +16 utils per dollar Total Utility (2) 0 25 48 67 81 89 90 83 Marginal Utility (3) 25 23 19 8 1 -7See Pigure entitled "Conumer move from A to B or C. Aume that this figure shows Gustavo's demand for a product called Daton. If Gustavo ia originally at point A, which ot the following can cause him to move to point C. For each of the options gives ume that all other determinants of demand (other than the change specified) remain unchanged. Connet move bom A to B or C 40 20 10 60 Quaitity ) Decrease in price of Daton's substirute Caton. 2) Deerease in price of Daton 3) Increase in price of Daton 4)Inerease in Gustavo's incomeA 10 percent increase in income leads to a 15% decrease in the quantity of Cheetos demanded but no change in the price of Cheetos. From this information, we can assume: O Cheetos are an inferior good and price elasticity of demand is less than 1. O Cheetos are a normal good and price elasticity of demand is greater than 1. Cheetos are an inferior good and price elasticity of supply is equal to zero. Cheetos are an inferior good and price elasticity of supply is infinite.
- Suppose that the demand schedule for rice for a Saudi family is as follows:PriceQuantity DemandedOf Rice Per Month(income = SR 10,000)Quantity DemandedOf Rice Per Month(income = SR 15,000)SR 5 60 70SR 4 80 95SR 3 100 120SR 2 120 145SR 1 140 170a. Given the table above, draw the demand curve of rice using Excel.b. Show what will happen to your graph if this family like now less rice as they are eatingmore outside.c. Use the midpoint method to calculate the price elasticity of demand as the price of riceincreases from SR 4 to SR 5 if (i) family’s income is SR 10,000 and (ii) family’s income is SR15,000.d. Calculate the income elasticity of demand of this family as their income increases fromSR 10,000 to SR15,000 if (i) the price is SR 3 and (ii) the price is SR 1.. It is a hot day, and Bert is thirsty. Here is the value heplaces on each bottle of water:Value of first bottle $7Value of second bottle $5Value of third bottle $3Value of fourth bottle $1a. From this information, derive Bert’s demandschedule. Graph his demand curve for bottledwater.b. If the price of a bottle of water is $4, how manybottles does Bert buy? How much consumersurplus does Bert get from his purchases? ShowBert’s consumer surplus in your graph.c. If the price falls to $2, how does quantitydemanded change? How does Bert’s consumersurplus change? Show these changes in yourgraph.When deciding which goods to consume, you should choose to consume the good with the highest marginal utility per dollar. O False, you should choose a combination of goods with equal marginal utility per dollar. O True, consumers are maximizing marginal utility and should always choose the highest amount per dollar. O False, you should buy the cheapest good to get a higher level of total utility. True, with diminishing marginal returns consuming more goods will reduce the marginal utility per dollar.
- If the price of a product decreases by 10 percent and the quantity demanded increases by 5 percent, then O the producer should lower the price further to sell more and further increase total revenue. the producer should raisc the price, but not as high as it was, to increase total revenue. O the produucer should raise the price higher than where it was to experience higher total revenue. O the producer should change the price back to where it was before the change.A 10 percent decrease in the price of a Pepsi decreases the demand for a Coca- Cola by 50 percent. The cross elasticity of demand between a Pepsi and Coca- Cola is Pepsi and Coca-Cola are: Select one: O a. 5; substitutes O b. 0.2; complements O c. 50; substitutes O d. 5; complements In order to prove that peanut butter and Jelly are complements, one should measure the and get a ***Destroy all sheets/clear white board during the exam before logging out (make sure the proctor sees you)** Select one: O a. cross-price elasticity; negative number O b. price elasticity of demand; number greater than 1 (in absolute value) O c. cross-price elasticity; positive number O d. price elasticity of demand; number less than 1 (in absolute value)Title Assume Brian"s income elasticity of demand for milk is 1, and he spends 1% of his income on milk. If his price elasticity of demand for milk is –0.03, what is his substitution price elasticity? Description Assume Brian"s income elasticity of demand for milk is 1, and he spends 1% of his income on milk. If his price elasticity of demand for milk is –0.03, what is his substitution price elasticity?