3. Nathaniel must divide PHP 500 between the consumption of product X and product Y. The relevant market prices are Px=50 and P=20. a. Write the equation for the consumer's budget line. Interpret the equation. b. Illustrate the consumer's opportunity set in a carefully labeled diagram, where X lies on the x-axis while Y lies on the y-axis. Interpret the consumer's opportunity set. c. Given the following indifference curves, the budget and the prices of goods X and Y, at what point is the optimal choice? Explain your answer.
Q: The federal budget usually shows a surplus. True or False?
A: The economics as a study is based upon the idea that the resources which are present with the econom...
Q: A company has a production capacity of 500 units per month per month and its fixed costs are P250,00...
A: Total cost refers to the sum of Fixed and variable cost. Variable cost changes with the level of out...
Q: In the circular flow model, how does government affect the economy? What about the rest of the world...
A: The circular flow model depicts how money circulates in society. Money moves from producers to emplo...
Q: The term "officially unemployed" would apply when a worker O a) leaves his or her job to attend scho...
A: Introduction: People are deemed employed if they completed any job for pay or profit during the surv...
Q: Supposing that a single consumer works for a firm, the quantity of labor input for the firm, N, is i...
A:
Q: 3. A monopolist sells two products x and y for which the demand functions are: x = 50 – Px y = 36 – ...
A: In economics, profit maximization is the short run or long run process by which a firm may determine...
Q: For a nation's real GDP per capita to decrease during a year, O a) investment spending must increase...
A: Real GDP per capita helps to measure the standard of living for an economy. It shows the average inc...
Q: The figure shows the choice of the abatement level, using the economy'S easible set and the citizens...
A: ANSWER:OPTION A Option A is the correct option-X is the optimal choice as it dominates all other opt...
Q: Which of the following statements regarding price-based and quantity-based policies is correct? A) ...
A: Option A: Incorrect A tax on carbon is not a quantity-based policy but a price based policy. Option ...
Q: Which of the following can we conclude when production has economies of scale? Marginal cost increas...
A: please find the answer below.
Q: What is Ann's expected payoff of playing D?
A: Expected payoff can be calculated using the probabilities and the payoffs
Q: How can natural resources conflicts be prevented
A: Natural resources are the resources that are used by people and businesses. People use natural resou...
Q: FF (store grain; 20% losses) 150- FF (lend at 10%) .FF (invest grain; 50% return; borrow at 10%) „FF...
A: Above problem pertains to intertemporal choice in which consumer has to distribute his consumption o...
Q: In a bilateral monopoly, what is the impact on the supply of labor compared to a competitive labor m...
A: Answer-
Q: The local government issues bonds to pay for road repair projects. If josue buys some of these bonds...
A: The bonds issued by the local government would be fresh bonds and not traded in the market. Therefor...
Q: 3. Two countries, Taiwan and Korea, produce two goods, avionics and integrated circuits (ICs), using...
A: Autarky is a kind of self-reliance and restricted trade that is commonly characterized as a form of ...
Q: hered to. demand for international reserves o
A: Before Bretton woods system, gold standard was followed where countries peg there currencies with go...
Q: Question-2 Explain by applying these concepts with examples. 1. Rational people respond to incentive...
A: Clarify by applying these ideas with models. 1. Rational individuals answer to motivating forces 2. ...
Q: 下午3:41 1月14日周五 Yuki 12.31 AP环科课程反馈,pdf ... 89. In a human population undergoing the demographic tran...
A: The study that depicts the changes which tend to occur in the human population is known as demograph...
Q: Question 3 3.1 Suppose the economy of Panicia is initially at a long-run equilibrium. The Central Ba...
A: Answer(3.1) In the figure, the Panicia economy is in long-run equilibrium at E1 where AD, SRAS1, an...
Q: Figure 8-6 The vertical distance between points A and B represents a tax in the market. Price 22 k 2...
A: Consumer Surplus when there is no tax = 1/2*(22-10)*600 = 300*12 = 3600 Consumer Surplus when there ...
Q: Assume, in the 3rd quarter of 2018 in the U.S., the velocity of money was 3.08 and the M2 money supp...
A: Real gross domestic product is a macroeconomic measure of the value of economic output adjusted for ...
Q: State (a): Two stable steady-states State (b): Fragile economic booms followed by stagnation trap Ev...
A: Because low aggregate demand depresses aggregate demand and pulls the policy rate closer to zero, th...
Q: $100 90 80 70 60 50 40 30 20 10 1 2 3 4 567 89 10 Quantity of Output Refer to Figure 7-3. Which is t...
A: please find the answer below.
Q: a Define 'terms of trade'. b What is the formula for the terms of trade index? c From the table belo...
A: The proportion of nation's export prices to its import prices is known as terms of trade . To purcha...
Q: Suppose Tom is 20 years old. He works till 50 years old, retire, and live up to 80 years old. Wh...
A: GIVEN Tom is 20 years old. He works till 50 years old, retire, and live up to 80 years old. Whil...
Q: a) What is the growth rate of output per worker before the change? What happens to this growth rate...
A:
Q: Offshoring of Goods and Services – End of Chapter Question Consider a U.S. firm's production of auto...
A: The Production possibility frontier seem different when one nation has a much of one factor. One ou...
Q: 18 MC1 16 14 12 10 ATC1
A: An economic profit is the difference between the revenue a commercial entity has received from its o...
Q: If you were in a position to run an economy, what steps would you take to raise our rate of economi...
A: Answer: *If i were in a position to run an economy *The following steps would be undertaken to raise...
Q: Which of the following statements about the Bipartisan Campaign Reform Act is true? Select the corre...
A: The McCain-Feingold Act is one of the few government regulations that manage the financing of politi...
Q: 3. Assume that there is a decrease in consumer confidence in the small open economy of Economica. Th...
A: Consumer confidence is one of the factors that influence market confidence because a change in consu...
Q: 1. Compute for the price elasticity of demand using the elasticity formula. Supplement your answer w...
A: Qd is the quantity demanded which is the quantity which the consumers are willing to buy at prevail...
Q: Use diagram to illustrate the Slutsky income and substitution effects of an increase in the price of...
A: The question says about the effect of income and substitution effect due to an increase in the price...
Q: 20 18 16 14 12 10 8 D 4 2 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity Suppose that supply and demand at a ...
A: please find the answer below.
Q: Question 1: In each state, how many stable steady states are there? Question 2: In each state, which...
A: Introduction: Stagnation trap is characterized by the existence of both a liquidity and a growth tra...
Q: A) The total abatement is maximised under the cap and trade equilibrium. B) In the cap and trade equ...
A: ▪︎A) The overall reduction is set at E*. The equilibrium of the cap-and-trade programme achieves the...
Q: Express the states (|0) + |1))//z and (|0) – |1))/VI in a basis in which they are not the same up to...
A: In this question we have to find out the relative phase shift with the help of the above information...
Q: The following graph shows the labor market in the fast-food industry in the fictional town of Supers...
A: Equilibrium occurs at the intersection point of the demand and supply curve. In this market, the eq...
Q: Public Good Contribution: Three players live in a town, and each can choose to contribute to fund a ...
A: Answer-
Q: mazon sets a demanding pace on the job Adapted from: Byers, S.M. & Stanberry, K. (2018). Business...
A: Given to visit Amazon distribution center: A)To find the requirement to walk an average of eight or ...
Q: Briefly synthesize (4-6 sentences) the 2020 fiscal policies implemented by the US government as a re...
A: COVID 19 badly effected the economy where the almost each and every economy has faced downturn phase...
Q: # of Pickers Total # of Strawberries Picked 1 180 380 580 4. 780 940 6. 1080 1180 1160 9. 1080 Refer...
A: In the mentioned question, we have been asked about the total product of labor curve and asked at wh...
Q: Which of the following best explains why the supply of housing in Detroit is much less elastic than ...
A: Availability is a basic economic notion that refers to the total amount of a given item or service p...
Q: The rate of time preference is part of the social discount rate. Many argue that this component of t...
A: * ANSWER :- From the given data the answer is The OPTION B ( our generation receives the same pre...
Q: Which of the following is most likely to have a low price elasticity of demand? A good that is very ...
A: Answer: The demand for goods that are expansive, luxurious, and goods having many substitutes will b...
Q: Assume in a given company the marginal productivity can be characterized by the following function M...
A: At the marketplace, a firm tries to maximize its profit, due to which it makes constraints for resou...
Q: Assume that the government sets a price floor in the market for wheat and the price floor is set bel...
A: Price controls aim at setting a minimum and maximum prices for the product for the welfare of the pe...
Q: What is the relevance opportunity cost of a worker whether to accept a new job?
A: Opportunity cost refers to the foregone benefit which would have been derived from a option not chos...
Q: 3. If U(z, y) = 1yl/2 and the budget is M pir1 +P2T2: a. What is Walrasian Demand? What does it repr...
A: Answer a. A consumer's Marshallian demand function is a more technical elaboration of the basic dema...
Step by step
Solved in 4 steps with 4 images
- The graph of the budget line below has dollars on the vertical axis and food on the horizontal axis. Which statement is false? D 100 Food The vertical intercept represents all money available for purchasing. The distance OA shows the amount of money spent on OD amount of food. If the amount of money available is known in this graph, then the absolute and relative price of food is known also. The horizontal intercept represents all the food the consumer could purchase with the budget available.Refer to the indifference curve/budget line diagram below in Figure 7. Given that a consumer initially faces budget line (BL1) and ICI, and thus, by choosing consumption point c, is able to achieve the optimal utility level. If the price of x (Px) decreases, then the substitution effect (SE) is the movement from _-. effect (IE) is the movement from and the income y a IC2 d IC: BLI Figure 7 O a. from b to a; and a to d. O b. from a to b; and b to c. O c. No correct answwers. O d. from c to d; and d to a.A consumer is choosing between magazines and books. His indifference curves and budget constraint are shown on the graph to the right. 50- 45- The utility-maximizing point is Point-B 40 Suppose that the price of books falls. 35 .... 1.) Use the line drawing tool to draw a new budget constraint (still tangent to 30- one of the indifference curves). Label this line 'L2 25- 2.) Use the point drawing tool to locate the new utility-maximizing point. Label this point 'T 20- Carefully follow the instructions above, and only draw the required objects. 15- 10- 5- 22.5 0- 35 20 25 Books 15 40 45 50 étv 15 MacBook Air 80 DII esc F2 F3 F5 F6 F7 F8 F1 ! @ $ 1 4 6. 7 8 9 Q W E IT Y tab A F つ K caps lock Z C V shift fn control option command つ Magazines N リ
- Question 7: For each of the following price-income scenarios, sketch the con- sumer's budget lines on one set of axes (i.e. put all three budget lines in one picture and label them 1, 2, and 3). Y is income, and pı and p2 are the prices of goods 1 and 2, respectively. (1) Y = 70, p1 = 5, p2 = 10 (2) Y = 70, p1 = 10, p2 = 10 (3) Y = 140, p1 = 10, p2 = 10 For the prices and income in part (1), solve for the optimal bundle for a con- sumer with each of the following utility functions: (i) U(q1, 42) = min{q1,5q2}; (ii) U (q1, 42) = 391 + 4q2; and (iii) U(41, 42) = q" 42 3/7 4/7 4 In each case, how would the optimal amounts of each good change if the prices and income were to change to those given in part (2)?Mega Partner is selling two products Marker(m) and Eraser(e) and their budget is given with thefollowing equation: 15Qe+ 30Qm= 3000. Now answer the following questions. I. Draw the budget line for Mega PartnerII. What would be the highest amount spend on Marker with the existing budgetIII. If Total budget increases to 4500 what would be the new budget line (use diagram)IV. If Price of the Marker becomes 15, how this changes the existing budget line keeping allthe values remain same.please only do: if you can teach explain each partc: what does it mean? can you show graphs: For these to be optimal choices with such preferences, the indifference curve through a must lie entirely on or above the budget line associated with (p, w), and simi- larly for r' for the budget line associated with (p', w'). how do you know this:Because each of these bundles lies below the other budget line, this implies that the indifference curves must cross, which is impossible. can you show graphs: note that (3,1) is a conver combination of x and x', so for conver preferences must be weakly preferred to x (the less preferred bundle between a and a'). But then the bundle (3,5/3) must be strictly preferred z, contradicting that is optimal given the initial budget set
- 1 . Assume the budget constraint and the indifference curves are both linear. Assume the consumer is willing to tradeoff 1 of good X for 1 of good Y. If the relative price of one additional good X is giving up 1/2 of good Y, then the optimal bundle of the two goods is? Assume the budget constraint and the indifference curves are both linear. Assume the consumer is willing to tradeoff 1 of good X for 1 of good Y. If the relative price of one additional good X is giving up 1/2 of good Y, then the optimal bundle of the two goods is? Assume the government imposes an effective minimum wage (i.e., one above the equilibrium wage rate that would otherwise prevail in that market). Our supply and demand analysis implies? If preferences for pizza increase and the price of labor to produce pizza decreases, the equilibrium quantity of pizza will ____ and the equilibrium price of pizza will _____ .? Assume an intertemporal budget constraint that shows how consumption can be traded off between…A 2015 report by the music industry estimated the revenue lost to the industry every yearfrom illegal downloading. In this problem we will derive some of the estimates that may havegone into their calculation (approximately).First, start with the individual consumer’s problem. Suppose a typical consumer has a yearlyentertainment budget of I that they can allocate between music downloads (D) and otherforms of entertainment (E). Consumer preferences are characterized by a utility functionU(D, E). a.) Write an expression for the consumer’s budget constraint as a function of their entertainment budget and the prices of music downloads (Pd ) and other entertainment (Pe). (b) Write the consumer’s constrained optimization problem in Lagrangian form. (Note: Youdo not need to solve it or derive first order conditions.)Assume, for simplicity, consumers in the United States only purchase food and all other goods with food plotted along the horizontal axis. During the COVID-19 stay-at-home mandate, Congress passed an economic stimulus package paying $1,200 to each person. How does this affect the budget line for each consumer? A. Makes the budget line steeper. B. Makes the budget line flatter. O C. Parallel outward (rightward) shift. D. Parallel inward (leftward) shift. E. None of the above.
- 2. Suppose a consumer has a fixed budget of $200, and she spends it all on two goods, x, and x2. The price of x, is $40 per unit and the price of x2 is $20 per unit; x1 and x2 are normal goods. (a) Draw and label the consumer's budget constraint, with x1 on the horizontal axis and x2 on the vertical axis. (b) What is the value of the consumer's marginal rate of substitution at her optimal con- sumption bundle? Explain what you your answer means. (e) Suppose the price of x, increases to $25 per unit. Graphically show the effect of this price change on the consumer's budget constraint.4. Suppose a person has $8 to spend only on apples and bananas. Apples 1 cost $0:4 each, and bananas cost $0:1 each. Furthermore, his preferences for apples (A) and bananas (B) can be represented by U = pAB. a) If A = 5 and B = 80, what will utility be?b) If A = 10, what value of for B will provide the same utility in part a? c) If A = 20, what value of for B will provide the same utility in parts a and b?d) Graph the indi§erence curve implied by parts a through c.e) Give the budget constraint, which of the points identiÖed in parts a through c can be bought by this person?f) show through some examples that every other way of allocating income provides less utility than does the point identiÖed in part b. graph this utility maximizing situation.a. A consumer is willing to trade 3 units of x for 1 unitof y when she has 6 units of x and 5 units of y. She isalso willing to trade in 6 units of x for 2 units of y whenshe has 12 units of x and 3 units of y. She is indifferentbetween bundle (6, 5) and bundle (12, 3). What is theutility function for goods x and y? Hint: What is theshape of the indifference curve?b. A consumer is willing to trade 4 units of x for 1 unitof y when she is consuming bundle (8, 1). She is alsowilling to trade in 1 unit of x for 2 units of y when sheis consuming bundle (4, 4). She is indifferent betweenthese two bundles. Assuming that the utility function isCobb–Douglas of the form U (x, y) = xα y β, where α andβ are positive constants, what is the utility function forthis consumer?c. Was there a redundancy of information in part (b)? Ifyes, how much is the minimum amount of informationrequired in that question to derive the utility function?