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- 5. If welfare as understood as preference satisfaction, it is virtually impossible to make interpersonal welfare comparisons. As a result, economists may adopt willingness to pay as a kind of shorthand for (or approximation of) preference satisfaction. Why might an economist think that willingness to pay is a useful approximation for preference satisfaction? Explain at least two common concerns with using willingness to pay in cost-benefit analysis.Question3 a) Suppose a household is faced with the choice between consuming gasoline (G) and all other goods (OG). Today the household consumes 800 liter of gasoline a year.Suppose then that a gasoline price increase is perfectly compensated by a wage increase. If the family followed the utility maximization model, how would this affect their consumption of gasoline? Explain by using a figure. b) Explain by using an example why an MRS (Marginal Rate of Substitution) between two goods must equal the ratio of the price of the goods for the consumer to achieve maximum satisfaction?In 2002, a French law went into effect that cut the standard work week from 39 to 35 hours (workers got paid for 39 hours even though working 35), while at the same time prohibiting overtime hours from being worked. (Overtime in France is paid at 25% above the normal wage rate.) (a) Draw the old budget constraint, showing the overtime premium after 39 hours of work. (b) Draw the new budget constraint. (c) Analyze which workers in France are better off under the 2002 law. Are any worse off? Explain. I need help with part(c) Please do not copy answers from other websites.
- This is the question on my price theory economics homework. I reworked the equations so that P (vertical y axis) was on the left of the equation and Q the x-axis. I, however, cant seem to figure it out. I tried submitting this question earlier, but it wasnt able to be answered. I added the multiple choice options. I reworked Q=1/2P to P=2Q P(with $5 tax)= 2Q+5 I reworked Q=20-2P to P=10-1/2Q Let supply be Q=1/2 P and Demand be Q=20-2P. If a Tax of $5 is imposed the DWL=......., the total tax collected is .........of which the burden of the tax on the consumer = ........... a. 2, 10, 5 b. 5, 10, 2 c. 10, 2, 5 d. None of the above6. If intertemporal preferences are consistent and the lifetime utility function is additive, then the discount function 8(t) must be (a) bounded (b) exponential (c) hyperbolic (d) linear (e) logarithmic16) are benefits and/or recognition that a person receives from someone else. 16) A) Intrinsic motivational requirements B) Intrinsic rewards C) Extrinsic needs D) Intrinsic needs E) Extrinsic rewards
- 8. After the attentive stage, customers become aware of the product and require a more challenging step in order to gain their _________________. At this stage consumers develop preference and are seriously considering purchasing the product eventually. * A. Attention B. Interest C. Desire D. Action E. None of the aboveWhether a certain criterion is determinant or not is independent of the situation in which a product is consumed. True False In the context of disposing of consumer refuse, recycling cuts down on garbage while providing raw materials for other new products. True False Which of the following is a fundamental emotion evoked by positive, anticipatory appraisals that signal uncertainty about a positive outcome? a. Hope b. Confusion c. Surprise d. Pride Which of the following best describes chronic, repetitive purchasing behaviors that are in response to negative events or feelings? a. Addictive consumption b. Impulsive purchasing c. Window shopping d. Compulsive buying Retaliatory revenge is when a consumer yells insults and makes a public scene in an effort to harm the business. True FalseCognitive biases are the result of Multiple Choice O heuristics used in the deliberative processes of the human brain. heuristics used in the intuitive processes of the human brain. deliberative processes of the human brain taking over the intuitive ones. the conflict between the older part and the newer part of the human brain.
- There are two expantions for preference reversals.(In Behavior Economics) -Scale Congruence -Prominence Could you explain about them easily?2) Explain how utility could be used in a decision where performance is not measuredby monetary value.Pls help with below homework. Select the correct option and explain it in 10-15 sentences.