The salary of a consumer increased from ¢90, 000 to ¢110,000, which represents his salary for 2021 and 2022 respectively. If he spends all his salary on baskets of apples which costed ¢100 in 2021 and increased to ¢109 in 2022, find the change in real income of the consumer.
Q: The quantity of real GDP supplied decreases if the price level because it profits. .... O A. rises; ...
A: Real GDP is defined as the price of base year multiplied by the quantity of current year. Hence if t...
Q: Q Suppose that the market is initially at an equilibrium price of $6 and an equilibrium quantity of ...
A: We show that deadweight loss from the tax given below
Q: You are the Financial Manager of Walmart in U.S. and Walmart has recently started exporting food pro...
A: Answer: If the value of AUD falls then fewer units of USD can be obtained from the same units of AUD...
Q: Regarding the Fisher Effect.. Give a real-world example of HOW and why the Supply curve for bonds sh...
A: As per the Fisher equation,Nominal interest rate = Real interest rate + Expected inflation.
Q: An optional question to give you more practice solving games. Consider the following one-shot simult...
A:
Q: A firm currently faces a market price of $7. If producing output where MC= $7, it would produce 11 u...
A: Actually in simple words we can say that the market price in the economy is generally known as the c...
Q: Fill in the table, and use it to answer the following questions. 2015 2016 Quantity of Money €300 €3...
A: Disclaimer :- as you posted Multipart questions we are supposed to solve the first 3 questions only ...
Q: To increase the money supply, the central bank could: O A) raise the discount rate. O B) make open-m...
A: Money Supply: - In an economy, the total value of money in circulation at a point in time is known a...
Q: neem ofwr a. Which point represents the optimunm combination of leisure and consumption after the wa...
A: The willingness of a person to work in a market and do job is determined by his/her choices for leis...
Q: Exhibit 3-1
A: The economic dynamics that decide what providers are willing to create and what buyers are willing a...
Q: How would you solve PART D (the one with externality) of this question? Thx
A: The budget line shows the combination of two goods that can be purchased with the given resources an...
Q: $21 $18 Supply $15 $12 $9 $6 $3 Demand 100 200 300 400 500 600 700 Quantity of Key Lime Pies Part 1:...
A: Generally in simple words we can say that Economic Equilibrium is considered as a situation in which...
Q: Consider a market in which a firm has monopoly power. Suppose in addition that the firm produces und...
A: Monopoly basically refers to a market in which there is only single seller/firm and that single sell...
Q: = 240 + 0.5Q², and face 4. A monopolist has the cost function TC(Q) market demand P= 45 – Q. (a) Fin...
A: Total cost function is as follows:- TC = 240 + 0.5Q² Market demand :- P = 45 - Q
Q: 45 40 35 30 ATC MC 20 15 10 MR D 1 6. 7 Quantity 1. What is the profit-maximizing output and price? ...
A: Answer: (1). According to the above figure, the equilibrium occurs at point E. The equilibrium quan...
Q: D02
A: In an economy, GDP in a specific year can be increased or decreased due to the changes in the compon...
Q: • Vicki works part - time at Bainen Press to help pay her college tuition. Vicki would be classified...
A: Given that Vicki works part-time to help pay her college tuition. This implies she is a full-time st...
Q: Does the educational system perpetuate or reduceinequality?
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and scarcit...
Q: (3) Consider the following figure about the real price of oil. Real price of oil 90 Start of pandemi...
A: The demand curve for labour, under the ceteris paribus assumption, shows the amount of labor employe...
Q: In the figure, equilibrium expenditure is equal to Aggregate planned expenditure (trillions of 2012 ...
A: In an economy, the equilibrium expenditure is calculated in different ways. The given graph shows th...
Q: The following are the prices of commodities in 2016 and 2017. Calculate price index based on price r...
A: Use the below formula to find the relative price: Price relative = P1P0×100
Q: What will be the demand deposits as cash reserve ratio is 18.5% and the cash reserves operating in t...
A: Initially in the given question, We need to calculate the demand deposit = ? Cash reserve ratio are ...
Q: Question 2 Customs Assume that the country initially has free trade with the outside world. A duty o...
A: In simple words we can say that a producer surplus is considered as the difference between the value...
Q: Suppose a small country initially imports 100 units of a good. Then it imposes a tariff of $5 that r...
A: A net welfare gain refers to the impact of a government policy, or a decision by firms, on total eco...
Q: What is the labor force participation rate?
A: Definition The labour force participation rate expresses the number of persons who work as a percent...
Q: Amanufacturer of kitchen appliances is preparing to set the price on a new blender. Demand is though...
A: Given Demand equation: D=2500-3P .... (1) Cost function: C=5000+4D .... (2)...
Q: Find the median wage of the following distribution : Wages (in $ ): 2,000-3,000 3,000-4,000 4,000-5,...
A:
Q: Questions of the day: economics A man decides to deposit Dollar 2730 at the end of each year in a ba...
A:
Q: Now draw a supply-and-demand diagram for the liquor market with the tax. Show the price paid by cons...
A: Answer -
Q: Buppose the supply of players is given by the equation w- 50.000 + 10.000L nhere wis wages, Lis the ...
A: Given information Supply curve of Labor W=50000+10000L MRP of labor or demand for labor W=500000-200...
Q: Plant I of XYZ manufacturing organisation employs 5 production and 3 maintenance engineers, another ...
A:
Q: A firm can borrow at an interest rate of 5%. Its marginal tax rate if 40%. What is its cost of debt?
A: Interest rate = 5% Marginal tax rate = 40% We need to calculate the cost of debt
Q: Market Demand for Porsche Spyder 1,050,000 Fred 1,000,000- Michel 950,000- Hua 900,000- Carlos n850,...
A: Here, the demand curve shows the different willingness to pay of different consumers.
Q: Direction: Give at least 3 examples for each type of market structure. As much as possible, avoid us...
A: Perfect competition:When all firms provide identical items, market share has no bearing on pricing, ...
Q: The Solow model without exogenous productivity growth predicts that rich countries with more capital...
A: If the other economic variables are same, the Solow model predicts that over the long run, the devel...
Q: | calculate the inflation/deflation if growth rate was 0.2 percent a year, the money growth rate was...
A: Inflation refers to the increase in the price level of goods and services of a country over a period...
Q: In year 2012, the size of an economy is equal to $15 trillion; in 2013, it increases to $16.5 trilli...
A: Given that: GDP2012 = $15 tnGDP2013 = $16.5 tn Let us calculate the growth rate: g = GDP2013 - GDP20...
Q: Suppose a firm has a production function as follows: y = 4x 25 x25, The price of x1 and x2 are 2 and...
A: Production function shows the functional relationship between input of factors and output produced. ...
Q: Suppose the local authorities wanted to achieve a more drastic reduction in total pollution of 75 to...
A: Introduction Here local authorities wants to reduce total pollution. a) Suppose 35 permits issues to...
Q: han unit(s) of cloth. 1. With mutually beneficial trade, cloth will be exported by Great Britain han...
A: Countries wheat production cloth production Great Britain 140 480 United States 1120 560 This...
Q: CThe following equations describe an economy C = 100 + 0.75 Y, I= 50 – 25i where C' is aggregate con...
A:
Q: Draw thes e utility functions a) u Cxry)= Cん)2ズy メ
A: We have given the two utility function u(x,y)=x1/2y1/2 .... (1) and u(x,y)=x2y1/2 ....
Q: The table below shows money demand and supply schedules for a hypothetical economy, Argentia. Nomina...
A: Answer: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the questi...
Q: For a given aggregate supply curve, if the aggregate price level in an economy rises, O real GDP inc...
A: The aggregate supply is the total amount of services and commodities that firms in an economic plan ...
Q: Is it worth investing in a project that costs up to 600 million dollars across 11 years but is expec...
A: Discount rate refers to the rate or interest rate by which future values are discounted such that th...
Q: Why is the marginal revenue of a perfectly competitive firm equal the market price?
A: Marginal revenue: it refers to the additional revenue received from the sale of an additional good. ...
Q: Expense Amount Mortgage (monthly) $985.64 Cell phone (monthly) $58.30 Groceries (twice a month) $154...
A: From an individual to a whole family or organisation, anyone can benefit from budgeting, as long as ...
Q: Suppose the government puts a tax on a market with inelastic supply and elastic demand, then---- O. ...
A: When a government imposed a tax on a product, then how much the burden of the tax falls on buyers an...
Q: Mr. Lee purchased a small condominium. He paid P350,000 as down payment and agreed to pay P35,000 ev...
A: Prize of the condominium = Down payment + Present value of quarterly payments.
Q: A perfectly competitive firm will maximize its profit when marginal revenue is greater than marginal...
A: A firm in a competitive market also wishes to maximize its profit like a firm in any other type of i...
Step by step
Solved in 2 steps
- Akua gets a research grant and her income increases to GHS 800 per month. What is the new equation of her budget line? What if income stays constant at GHS 400 and the price of Yoghurts increase to GHS10?Laurie eats soup and bagels. Her budget line is Qs = 20 - 1.0Qg. (Qs is the quantity of soup and Qg is the quantity of bagels.) What is Laurie's real income in terms of soup? What is Laurie's real income in terms of bagels? ..... Laurie's real income in terms of soup is bowls of soup and her real income in terms of bagels is bagels. O A. 20; 20 О В. 20; 10 Ос. 1; 20 O D. 20; 1The expenditures of a typical family on gas, food,and clothing in 2009 and 2010 are given in the table below. Assume quantses are constant trom 2009 to 2010. Expenditures in 2009 (in S) S60 310 80 Category Expenditures in 2010 (in S) Gas 568 Food 341 24 Clothing When the base year is 2009 the value of Consumer Price index (CPI) for year 2010 is (Round your response to wo decimal places) Incorrect: 1 Check answer Clear all
- Explain how does adecrease in the current income y affect the consumer’s consumption-saving decision. In particular,explain: 1) How will current consumption c, future consumption c', and savings s change; 2) Arethere any substitution effect or income effect. Make sure you draw two figures, one for the borrowersand one for the lenders.Assume that John has RO 21 to spend on Energy drink and Protein bars each month and that both goods must be purchased whole (no fractional units). Energy drink (X) cost RO 3 and Protein bars (Y) cost RO 2 each. John’s preferences for movies and books are summarized by the following information: No. per Month Energy drink No. per Month Protein bars TU MU MU/Px TU MU MU/Py 1 84 1 36 2 156 2 66 3 216 3 90 4 264 4 108 5 300 5 120 6 324 6 126 7 336 7 126 Fill in the figures for marginal utility of X and marginal utility of Y per dollar for both movies and books. Are these preferences consistent with the law of diminishing marginal utility? Explain briefly. Given the budget of RO 21, what quantity of Energy drink (X) and what quantity of Protein bars (Y) will maximize John’s…Explain how does adecrease in the current income y affect the consumer’s consumption-saving decision. In particular,explain: 1) How will current consumption c, future consumption c′, and savings s change; 2) Arethere any substitution effect or income effect. Make sure you draw two figures, one for the borrowersand one for the lenders
- Go to this website (http://www.measuringworth.com/ppowerus/) for the Purchasing Power Calculator at measuringWorth.com. How much money would it take today to purchase what one dollar would have bought in the year of your birth?0.13 KB/S Vo 9:43 J תיוו |lוי ח:הו Assignment 2 Principles of Microeconomics 1. 1. Rummy has $40 a week to spend on burger and cake. The price of burger is $5 and the price of cake is $2 a slice. а. Calculate Rummy's real income in terms of cake. b. Calculate the relative price of cake in terms of burger. Calculate the equation for Amy's budget line. If Rummy's income increases to $60 a week and the price of burger С. d. and cake remain unchanged describe the change of his budget line. If the price of cake doubles while the price of burger remains at $5 and Rummy's income remains at $40 describe the change in his budget line. е. f. If Rummy's income is $20 and all the money spend to purchase burger, how many burger he can purchase?Fill in the blank. As a person consumes additional unit. This concept is referred to as the. consumption. more, remains unchanged, constant O more, decreases, diminishing O less, decreases, diminishing more, increases, increasing O less, decreases, increasing units from a certain product, the value he gets from each marginal value of
- This week Sara’s income falls from $12 to $9 a week, while the price of popcorn isunchanged at $3 a bag and the price of a smoothie is unchanged at $3.g. What is the effect of the fall in Sara’s income on her real income in terms ofsmoothies and in terms of popcorn?h. What is the effect of the fall in Sara’s income on the relative price of a smoothiein terms of popcorn? What is the slope of Sara’s new budget line if it is drawnwith smoothies on the x-axis?Suppose Jack has $400 in nominal income. The price per unit of DVDs is $20. Accordingly, what is Jack's real income in terms of DVDs? O a. O b. O c. Od. between 0 and 15 between 15 and 30 between 30 and 45 between 45 and 60 e. greater than 60Rich's Opportunities. Rich has no nonlabor income, and suppose the price of consumption is $1 per unit. Rich earns $15 per hour, and he has 16 hours in the day to allocate between working and leisure time. The figure be depicts his budget line. consumption (units/day) 240 210 180 150 120 90 60 30 0. 21 4. 6. 8. 10 12 14 16 leisure (hours/day) Rich is thrilled to learn that his folks will give him a $10 daily allowance starting tomorrow. What happens to Rich's opportunities tomorrow? O a. Rich's endowment point shifts left $10. Ob. His budget line shifts up 10 units of consumption per day. O c. The slope of Rich's budget line increases (in absolute value) $10 per day. O d. The slope of Rich's budget line decreases (in absolute value) $10 per hour.