Question 3 Part a John has $100 that he can spend on milk and gas. A gallon of milk costs $5. However, government gives its citizens a coupon that entitles people to 20% discount on their first 10 gallon milk purchases. Gas costs $4 per gallon and government charges $1 for each gallon of purchased gas. John's utility function is U(x, y) = 9x+10y, where x and y represent gallons of milk and gas consumed, respectively. What is John's optimal consumption of milk and gas?
Q: Membo Inc. just paid a dividend of $4.6 per share. Dividends are expected to grow at 6%, 5%, and 3%…
A: A dividend is the part of profit that a corporation distributes to its shareholders. Dividends are…
Q: Consider each scenario independently. In each of the following cases tell me, using verbal and…
A: (g) The following diagram shows the tax on gun buyers. Initial Demand is D1 and supply is S1. Due to…
Q: 0 A) A and B B A and C B C) A and D LRAS Y₁ SRAS, SRAS₂ Refer to Figure 13-3. Which of the points in…
A: The term "short run" refers to the time frame within which a company can experiment with altering…
Q: Complete the following table for the consumption function: $600+ 0.60Y. (Round all answers to three…
A: Average Propensity to Consume = C/Yd Average Propensity to Save = S/Yd
Q: PVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS AND DRAW THE CASH FLOW DIAGRAM. NO LONG…
A: Annual deposit be A Deposit starts from the 5th Birthday to the 15th birthday. Withdrawal start from…
Q: Joe has just moved to a small town with only one golf course, the Northlands Golf Club. His inverse…
A: Given that, Demand function, p = 120-2 Marginal Cost, MC = 40 To calculate: Profit maximizings.
Q: The cost of maintaining a certain permanent monument in Washington DC occurs as periodic outlays of…
A: Given Equal annual cost each year =$1000 Every three-year maintenance charge =$3000 r=10% per year.…
Q: 8.5 8 75 7 65- 6 5.5 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 Price 200 500 650 O subsidy of $2 per unit tax of…
A: Here, the given graph represents the market with negative externality due to difference in the…
Q: The CTO of a pharmaceutical firm will install one of two mechanical devices to reduce costs. Both…
A: IRR is defined as the method of capital budgeting which helps investors to take decisions that are…
Q: Refer to the figure. If the firm is in a competitive market. What will the firm do in the short…
A: A competitive firm is a price takers, they have no control over the market price. This is so because…
Q: 2. You are deciding whether or not to purchase insurance. Your income is $100,000 and the chance of…
A: Income = $100,000 Chance of getting sick = 30% Coinsurance rate = 0.15 U = Y0.5 When sick,…
Q: Assume that the production function for a certain production process is given by the following…
A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…
Q: 8. Given the following on a closed economy. C= consumption C = 40 + 0.8Yd 1 = 55-200r G = 20 T = 20…
A:
Q: Now suppose that Jason's utility is entirely based on number of hours of skiing (X) and skating (Y).…
A: Utility function : U (x ,y ) = max {aX, bY } Budget Constraint : Px (X) + Py (Y) = M Also its…
Q: 1. The aggregate matching function in the Mortensen-Pissarides model of unemployment specifies…
A: The supply and demand of labour, wherein employees provide the supply and employers provide the…
Q: country can only produce either 5 units, 10 units or 15 units. The total production of the two…
A: The Nash equilibrium is a decision-making theorem within game theory that states a player can…
Q: Eddie's Precision Machine Shop is insured for $700,000. The present yearly insurance premium is…
A: The premium based on coverage is the sum that we pay for insurance on the basis of a particular…
Q: There are two countries in the world economy: Home and Foreign. Home has 3000 units of labor…
A: Labor Requirements in both the countries - COFFEE SUGAR Total Labor HOME 4 10 3000 FOREIGN…
Q: Table 1 Year CPI 2013 97.8 2014 98.6 2015 100 2016 102.5 2017 104.1 a. Calculate CPI inflation rates…
A: Inflation is the rate of increase in prices over a given period of time. Inflation is typically a…
Q: Define the Fisher effect. To what extent do empirical tests confirm that the Fisher effect exists in…
A: The measure that depicts the amount being charged by the lender that is over and above the principal…
Q: Managerial Economics What is the answer to the following questions (1-3)? 1. What are primary…
A: Whatever is utilized in creating a commodity is called its input. For instance, for delivering…
Q: CBS is selling advertising for its broadcast of the AFC championship game. The station’s demand for…
A: Marginal cost is the change in total cost that is obtained from production of an additional unit.…
Q: Consider the following data on Prices and Quantities of T-Shirts and Pyjamas. Using 2015 as the base…
A: Inflation is the % change in the value of the Wholesale Price Index (WPI) on a year-on-year basis.…
Q: Is the following positive or Normative Statements? 1. raising flour prices will increase the price…
A: Positive statements are the ones which state a fact or something that can be confirmed. The positive…
Q: Person 1: MB1= 40 − 2Q Person 2: MB2= 30 − 2Q Person 3: MB3= 31 − Q They are non-rival, just like…
A: Here we are given the individual benefits of the public good and the marginal cost of the public…
Q: brownie has $100 that he can spend on milk and gas. A gallon of milk costs $5. However, government…
A: The indifference curve for linear preferences is straight line sloping to downward to right. The…
Q: To produce a Ipad pro it requires 7 hours of work for software, 6 hours of work for hardware, 8…
A: We use matrices to solve this problem. Since we have been given the total hours, we will form 2…
Q: Label the following as either being a final or intermediate good. A_ Recycled steel purchased by a…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: A company that manufactures brushless blowers invested $700,000 in an automated quality control…
A: The rate of return refers to the rate of discount that makes the net present value (NPV) for the…
Q: What is the elasticity of demand at Q = 500 when the demand equation is P = 1000 - Q? Recall that,…
A: An elastic demand is one in which the change in quantity demanded due to a change in price is large.…
Q: Market demand is P=125-(3/8)Q Market supply is P=5+(1/8)Q. This time the government imposes a…
A: Price Ceiling: When the market equilibrium price is quite large then in order to support the buyers…
Q: Suppose the government of the island has decided to make tomatoes more affordable to consumers by…
A: The concept is based on the interaction of the supply and demand curve in which supply is an…
Q: How much money should be deposited each year for 8 years starting 1 year from today, if you wish to…
A: To determine the present worth the present value of money approach will be applied with the…
Q: Raman noodles are an inferior good. If all consumer's incomes decrease, then the ____ curve shifts…
A: Inferior good are those goods which has negative relationship between the income of the consumer and…
Q: The Consumer Price Index... Group of answer choices Measures the change in the cost of living for a…
A: CPI is the consumer price index. Cost of basket is the basket quantity multiplied by the price of…
Q: Suppose the economy had been producing at potential output but is now experiencing a recession.…
A: To stimulate the output or control the recessionary forces in the economy government generally…
Q: Based on a retail store that sells clothing for the age between 8 and 40 years . Describe the…
A: Price: It refers to the cost of goods and services present in the market. Price is the rate at which…
Q: The following figures are from data on Good Island Economy Items $m Net private investment…
A: Gross private investment is a metric used to describe how much money corporations spend…
Q: suppose the price of an ounce of gold is p = $12.00. The total ounces of gold demanded in this…
A: For Hugh: Qh = (240-p)/40 For Frank: Qf = (48-p)/8 For Luis: QL = (12-p)/2
Q: The alternative policy is to introduce a tax of $3,000 on the sale of new cars. Under this policy,…
A: Here we are given the market of new cars. And here we have the demand and the supply curve. The…
Q: A firm faces perfectly elastic demand for its output at a price of $6 per unit of output. The firm,…
A: The variable input in a company's production process is typically manpower. As a result, the firm's…
Q: In most developed countries, services account for the majority of gross domestic product. False…
A: Gross Domestic Product is defined as the final value of all goods and services produced within a…
Q: Suppose the demand for apple is inelastic and the supply of apple is elastic, and the demand for…
A: incidence of tax is totally dependent on the elasticities of demand and supply curve of the consumer…
Q: Use this data and develop a model of a truck's annual maintenance expenses based on its weekly usage…
A: We will develop a linear regression using the given information. Dependent Variable : Annual…
Q: Explain the effect of an increase in demand for tomatoes on demand or supply of tomato pickers. What…
A: Demand is the quantity of the commodity that is sought after at various prices throughout a specific…
Q: write a explanation about UN sustainability goals 8 and 12 and elkington's triple bottom line and…
A: Goal 8: Decent work and economic growth: Promote comprehensive and effective employment, fair work…
Q: You are given the following financial data about a new system to be implemented at a company:…
A:
Q: rhe most significant real economic cost of high unemployment is: a) the potential goods and…
A: The most significant real economic cost of high unemployment is:
Q: Can these activities be considered part of GDP? (i) A garage buys spare tires to sell to customers…
A: GDP refers to the total value of goods and services being produced inside the geographical…
Q: A Civil Engineer is considering establishing his own company. An investment of $4,000,000 will be…
A: Future worth, which is based on an estimated growth rate, is the value of a current asset at a…
Plz show work , and provide explanation as well
Step by step
Solved in 3 steps with 1 images
- jamie has $100 that he can spend on milk and gas. A gallon of milk costs $5.However, government gives its citizens a coupon that entitles people to 20%discount on their first 10 gallon milk purchases. Gas costs $4 per gallon andgovernment charges $1 for each gallon of purchased gas. Jamies utility functionis U (x, y) = 9x+10y, where x and y represent gallons of milk and gas consumed,respectively. What is Jamies optimal consumption of milk and gas?Part bIf government removes the quantity restriction to which the coupon applies (i.e.20% discount is applied to any quantity of milk purchased), what will be jamieoptimal consumption?3. Suppose that Omar’s marginal utility for cups of coffee is constant at 1.5 utils per cup, no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. How big would that budget have to be before he would spend a dollar buying a first cup of coffee? *use tables and/or graphs if possible, please original work2) Suppose Kelvin receives RM400 allowance a month and he only spends on other goods and food. In the first year, the price of food is RM4 per kg and the price of other goods is RM1 per unit. His utility function is U-20√GF, where G represents other goods and F represents food. In the second year, prices of both commodities increased by RM1 each due to tax. a) Assuming Kelvin maximizes his utility subject to his allowance, how much food and other goods were consumed in the first year? b) In the second year, if his allowance did not increase, how will this affect his food, other goods consumption, and his utility? c) Suppose he received rebates that reflect the true cost of living (an inflation index that holds utility constant over time: ideal cost of living), what is his level of food and other goods consumption under this circumstance? How much compensation did he receive? d) If Kelvin was given a rebate such that he could still enjoy his bundle of goods in the first year, how much…
- 48 aces How big would that budget have to be before he would spend a dollar buying a first cup of coffee? Instructions: Enter your answer as a whole number. here to search Suppose that Omar's marginal utility for each additional cup of coffee is 2.5 utils per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. O Saved II Help 4 SawSuppose that Omar’s marginal utility for cups of coffee is constant at 5.5 utils per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 11 for the first doughnut he eats, 10 for the second he eats, 9 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. How big would that budget have to be before he would spend a dollar buying a first cup of coffee?The government of the island nation of Autarka has become increasingly concerned aboutthe health and wellbeing of low income households. Medical experts stress the importanceof a healthy diet in this regard. They have determined that, ideally, a household wouldconsume at least 5kg of fresh fruit and vegetables each week.The government has proposed implementing a new voucher scheme to ensure that the5kg per week consumption target is met. Under the government’s proposal, the voucherswould be redeemable for fresh fruit and vegetables, but could not be used for other typesof food, or for non-food consumption. Moreover, to limit the cost of the voucher scheme,the value of the vouchers sent to a household would be linked to the household’s income.Community groups in Autarka have expressed concern that a voucher scheme is unnec-essarily paternalistic; depriving low income households of the choice of how to spend theirincome. These groups argue that the government’s consumption targets could…
- Suppose that Omar's marginal utility for each additional cup of coffee is 1.5 utils per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 11 for the first doughnut he eats, 10 for the second he eats, 9 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. What is the minimum value of Omar's budget if he purchases one cup of coffee? Instructions: Enter your answer as a whole number.True or false with reasoning: 1) _______When we claim that utility can be ordinally measured, we assume that the consumer is able to measure the total and marginal utility received when one extra unit of a commodity is consumed. 2)_______If MRS between two goods is constant, then having more of one good without having more of the other does not increase utility. 3)_______Marginal Utility increases until total utility is at a maximum and then marginal utility decreases.Carl has $8 to spend on some combination of apples, bananas, and coconuts. Apples and bananas cost $1 each, while coconuts cost $2 each. The table below shows the total utility obtained per good, given the quantity purchased. To maximize the sum of his utilities from apples, bananas, and coconuts, how many of each fruit should car purchase? _____ Apples? _____ Bananas? _____ Coconuts? In doing so, he obtains a total utility of ____ from consuming all of his fruit.
- 3- If the quantity of good A (QA) is plotted along the horizontal axis, the quantity of good B (QB) is plotted along the vertical axis, the price of good A is PA, the price of good B is PB and the consumer's income is I, then the slope of the consumer's budget constraint is: 1374200. a) b) d) I/PA or I/PB. -QB/QA. -PB/PA. -QA/QB. -PA/PB.suppose the government of a desert community wants to punish excessive water useage, where "excessive" is defined as any usage greater than 100 gallons/week. to do this, the government paces a flat $100 income tax on anyone who consumes more than 100 gallons/week of water in any given week (so this tax could theoretically be levied 52 times per year). people who use less than 100 gallons of water each week will not face this $100 special tax. For these problems, consider the decisions between water consumption, X(sub)w and consumption of a composite good, X(sub)c, where P(sub)w =$2/gallon and the composite good's price is numeraire. suppose michael lives in this desert community and has a weekly income of $1000. 1. graphing michels budget contraint over (X(sub)w , X(sub)c) bundles, what is the slope of his budget conraint for bundles containing MORE than 100 gallons of water? 2. What is the slope of michaels budget constraint at the point (X(sub)w, X(sub)c)=(100,750)? 3. what is the…2. Alex and Bill share a flat. Alex enjoys reading in silence, while Bill enjoys listening to loud music. Bill controls his music system, which can produce noise levels up to 100 Decibels. Bill has no cash but Alex has £100. Their utility functions are given by: UA = 10(100 – D)i + (100 – M), %3D Ug = 10(D)i + M, where D denotes the Decibel level chosen by Bill, and M denotes any cash given to Bill by Alex. (a) Explain how Bill's music level affects Alex. Find the contract curve between Alex and Bill. Why is there a unique Pareto efficient noise level? (b) What is the maximum amount Alex would be willing to pay Bill to turn down the music to the Pareto efficient level? What is the minimum amount Bill would be willing to accept in order to turn down the music to the Pareto efficient level? Can the Pareto efficient noise level be achieved through private bargaining?