Consider a simple two person exchange economy. Ahmad and Maria consume two goods, X and Y. Maria is willing to trade 2 Y for 1 X and Ahmad is willing to trade one Y for 1 X. The government gives Maria 5 X and 5 Y and Ahmad 7 X and 10 Y. Illustrate the situation using an Edgeworth box, labeling all points, axes, and indifference curves. Since you are given numbers, I expect you to use them. (10 pts) Is the allocation provided above Pareto efficient? (10 pts) If so, explain why. If not, provide a specific Pareto improvement that could be made. Is government intervention necessary here?

Alex is considering one of two options for reducing her heating bill during the winter: New windows New furnace $3,800 $650/y 10 y Purchasing price $4.500 Annual savings $650/y Lifespan 15 y Assuming her MARR is 5%, use any comparison means (PW/AW/FW) to determine which option she should consider. Salvage value for both options is zero.

Suppose that we can describe the world using two states and that two assets are available, asset X an asset Y. We assume the asset’s future prices have the following distribution   State                Future Price Asset X               Future Price Asset Y 1                      $25                                          $50 2                      $20                                          $40   The values of the unit claims implied by these assets are such that:     A. C1 and C2 cannot be determined   B. C1=1 and C2=1   C. C1=1, but we cannot determine C2   D. C1=5/4 and C2=5/4

This question is asking amount that Ding would receive instead the answer states what Tillman would receive. Can you please help? Thank you!

The supply and demand equations of a good are given by the following formulas P=2Qs +48 P= -6QD+ 160 Find the equilibrium price and quantity. The equilibrium quantity is. (Type an integer or a decimal.) ***

Rank the following goods, according to how much their present price responds to expected future prices. (1-most responsive; 4=least responsive). Hint: You should think about the relative costs of storing the good, and the ease of buying and selling it (liquidity) because both help to determine the feasibility of adjusting the timing of purchases and sales. < Iron. Stocks. Apples. Gold.

QUESTION 22 This question asks you to compare the Slutsky equations for the consumer's model with monetary income (CM) and for the consumer's model with endowments (CE). Consider the demand for good x and how this demand changes as the price of good x increases O a. In both the CM and the CE models, if x is a normal good, then the demand for good x must decrease O b. In both the CM and the CE models, if x is an inferior good, then the demand for good x must increase Oc Suppose x is a normal good. While in the CM model the demand for good x must decrease, in the CE model the demand for good x may increase if the consumer is a net seller of good x before the change in price Od. Suppose x is a normal good. While in the CM model the demand for good x must decrease, in the CE model the demand for good x may increase if the consumer is a net buyer of good x before the change in price Oe Suppose x is a normal good. While in the CM model the demand for good x must increase, in the CE model the…

Find the price at which Aastha will get a margin call, and the price at which Brian will get a margin call.

Suppose that we can describe the world using two states and that two assets are available, asset K an asset L. We assume the asset’s future prices have the following distribution   Suppose that we can describe the world using two states and that two assets are available, asset K an asset L. We assume the asset’s future prices have the following distribution state 1             Future Price Asset K $55 $45 2.          Future Price Asset L $60 $30 The current price of asset K is $50, and the current price of asset L is $50. What are the values of the unit claims (C1 and C2)? What is the risk free rate implied by these assets? What is the “risk neutral probability” of state 1? What is the “risk neutral probability” of state 2? What is the price implied for an asset providing $100 in state 1 and $50 in state 2? You plan to buy a home for $100,000 in the future.You want to guarantee that you will have the money.What would you buy/sell today to accomplish this, and what…

Please view the following videos before answering this question. Video Example 4.4 Video Example 4.8 When using the benefit-cost ratio measure of worth (B/C), what benchmark is the calculated ratio compared to in determining if an individual investment is attractive? O 1.0 O IRR O MARR O 0.0