a. Calculate oh, oh, oh, oh, oh, oh₂ " ди’ ди’дру`дрг др, дрг b. Show that әһ, др. c. Show that if <0, ah, " 2 <0, and дрг ah, др г = дһ, ox, др. дрг = дһ, ->0, good 1 is a normal good. ди ах, др. |du=0 |du=0 >0.
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- Figure 4.2 P3 P2 P1 A C Q Q2 Q3 Q4 Qs Qs Q7 Refer to Figure 4.2. The demand curve A indicates that O the smallcst price change will cause consumcrs to change their consumption by a large amount, O therc is no change in quantity demandcd as the price changes. consumcrs can purchase any quantity they want regardless of the price, Oithc smalcst price incrcasc wil.causc.consuners to switch to the producer with thc lowestMalita has K150 of disposable income to spend each week and cannot borrow money. She buys Milk balls and a composite good. Suppose that Milk balls cost K2.50 per bag and the composite good costs K1 per unit.Sketch Malita’s budget constraint.What is the opportunity cost, in terms of bags of Milk balls, of an additional unit of the composite good?Suppose that in an inflationary period the cost of the composite good increases to K1.50 per unit, but the cost of Milk balls remains the same. Sketch the new budget constraint.What is the opportunity cost of van additional unit of the composite good?Suppose now Malita demands a pay raise to figjht the inflation. Her boss submits and raises her salary so that her disposable income is now K225 per week. Sketch the new budget constraint. Is Malita better off?What is the opportunity cost of an additional unit of the composite good?3 4 The demand x is the number of items that can be sold at a price of $p. For x= p* - 3p° + 1500, find the rate of change of p with respect to x by differentiating implicitly. ..... The rate of change of the price p with respect to the demand x is
- 1. For given prices ps and pg, and income I. Tom’s Marshallian demands for salad andgreen juices are...7 Asen tries to minimize his cost of using two goods x subscript 1 end subscript and x subscript 2 end subscript. The price of the first good is BGN 12 and the second good BGN 8. His utility function is x subscript 1 superscript 3 divided by 5 end superscript x subscript 2 superscript 2 divided by 5 end superscript and the utility he will get from using both goods, is 32 units. Find the Hicks quantities demanded and what Assen's minimum budget must be to consume these quantities and obtain the above utility. e-412, h2=21, h1=21 e=416, h2=21, h1=21 e=640, h1=32, h2=32 e=422, h2=21, h1=21 e=378, h2=21, h1=21 e-378, h2=20, h1=20 another answer e-378, h2=24, h1=248. Consider a two-person economy which consists of Ann and Bob. Both of them only consume goods and y. Ann utility over these two goods is: T u(xA, YA) and Bob's utility is u(TB, YB) wwwmm TAYA 2 IBYB 3 Initially, Ann is endowed with 9 units of z and zero units of y; Bob is endowed with 6 units of y and zero units of z. (a) Write Ann's marginal rate of substitution in terms of TA and yA and Bob's marginal rate of substitution in terms of ï and YB. (b) Derive the equation for the contract curve.
- Economics. Kindly solve this with explanation Consider a 2-good economy and a consumer endowed with a positive net income m. If the unit prices of goods are p1 and p2 with p1=2p2 and the consumer is invariably indifferent between 5 units of the first good 1 and 8 units of the second good 2. Than the consumer will choose to consume amounts x1 of the first good and x2 of the second good such that; P1x1=p2x2 X=0, x2>0 X1>0, x2=0 None of the answers is correct6. My utility over goods 1 and 2 is given by: u(x1,x2)=min{x1/a,x2/b} Where x1is the quantity of good 1 I consume and x2 is the quantity of good 2 I consume. Assuming I purchase only goods 1 and 2... If a = 2, b = 5, the price of good 1 is $2/unit, the price of good 2 if $7/unit and my income is $5, how much good 2 will I consume to maximize my utility? (Note: The answer may not be a whole number, so round your answer to the nearest hundredth) (Note: The numbers may change between questions, so read carefully)Remaining Time: S Suppose the demand for Apples is given by QA = 240 - 8 PA and the current market price is 25. %3D Calculate consumer surplus. 100 Correct response: 100 If the market price increases to 29 calculate consumer surplus. 4 Correct response: 4 What is the compensating variation assocated with a loss of access to the apple market at the initial price of 25? Assume demand remains constam What is the compensating variation associated with the increase in price from 25 to 29? Assume demand remains constant. Section Attempt 1 of 1 Verity
- Choose the answer that describes the resulting change(s): O Supply of € shifts left; US$ depreciatres O Demand for € shifts left; US$ appreciates O Supply of € shifts right; US$ appreciates O Demand for € shifts right; US$ deppreciatesYou are choosing between two goods, X and Y, and your marginal utility from each is shown in the following table. Units of X MUx Units of Y MUy 1 10 1 8 2 8 2 7 3 6 3 6 4 4 4 5 5 3 5 4 6 2 6 3 a. If your income is $9 and the prices of X and Y are $2 and $1, respectively, what quantities of each will you purchase to maximize utility? ______units of X and ______units of Y b. What total utility will you realize? ______utils c. Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase? _____units of X and ______units of Y d. Using the two prices and quantities for X, complete the table to derive the demand schedule (a table showing prices and quantities demanded) for X. Instructions: Start with the highest price first Price of X Quantity Demanded of X $ $5. In which of the following cases will the consumer redirect his consumption in favor of corn flakes, against bread: * O When MUCorn flakes = MUBread O When MU Corn flakes / P Corn flakes TU Bread /P Bread O When MU Corn flakes / P Corn flakes > MU Bread /P Bread
