35. If an increase in income causes the quantity demanded of a good to fall, then the good is: (a) A normal good (b) An inferior good (c) A substitute good (d) A complement good
Q: 9. You have a chance to play a coin flip game where if the coin comes up heads you get $5,000; but…
A: As a risk-averse person, you would be willing to give up some expected value in order to avoid the…
Q: Microeconomics deals with allocation of resources. True/False
A: Allocation of resources refers to the way in which scarce resources are distributed among different…
Q: When there are two large open economies in the world, if desired international borrowing by the…
A: An open economy is an economy that interacts with the rest of the world through international trade…
Q: 1. A. For each of the following, state whether or not it is included in GDP. If it is, state the…
A: Gross Domestic Product (GDP) is a measure of the total value of goods and services produced within a…
Q: Paolo and Van are considering contributing toward the creation of a water fountain. Each can choose…
A: It's a problem of free rider where an individual is better off by not paying to the common good
Q: The income-consumption curve is used to derive an individual’s demand curve. (a) True (b) False
A: Demand curve of a good is the graphical representation of the demand schedule of the good which…
Q: What does elasticity of demand mean for healthcare insurance companies, medical doctors and the…
A: Demand elasticity is a measure of how responsive the quantity demanded of a good or service is to…
Q: Walmart should not pay for the health care of its workers: Why should it?
A: Employee compensation is defined as the entire monetary or in-kind compensation provided by a firm…
Q: 3. Under what circumstances an aggregate demand curve would shift either to the right or left?…
A: Aggregate demand is the total demand for the goods that are manufactured within a domestic territory…
Q: please help with 1 and 2 Students taking the Graduate Management Admissions Test (GMAT) were…
A: Probability of occurrence of an event is the ratio of the expected favourable number of cases and…
Q: in the market for loanable funds, there is a demand and supply of loanable funds represent as the…
A: Economic equilibrium is a state of an economy where economic forces are balanced.
Q: Demand for carpets is given by Qd=2,000-8p. What is the value of the arc price elasticity of demand…
A: Arc Price Elasticity of Demand Arc elasticity is indeed the responsiveness of one variable to…
Q: Part 1: Class, what is an intermediate good? How does an intermediate good differ from a final good?…
A: Disclaimer Since you have asked multiple questions, we will answer the first one for you. If you…
Q: How much will a deposit of P1,000.00 be in 20 years at an interest of 6% compounded annually? A.…
A: Future value refers to an amount that will accrue over defined time with the given discounted rate…
Q: What is the 2019 (i.e. percentage m 2018 to 2019)? approximate inflation rate increase in prices
A: The market basket consists of two goods, beef, and pork. Hence, there are 100 quantities of beef…
Q: Supposed the law prescribed the renter to vacate an apartment within 30 days after being served with…
A: The application of economic techniques to real estate markets is known as real estate economics. It…
Q: 3) Jack's Labor Demand Problem Jack hires craftswomen like Jane to help produce widgets. Jack acts…
A: As per our guidelines we are answering the first three sub parts for you. For other parts of the…
Q: When the government raises a subsidy granted to the producers of good Y, the equilibrum price of…
A: Subsidy is a payment made to firms or consumers designed to encourage to increase in output.
Q: Considering the equation 'AD = C+I+G+ NX,' an increase in personal income taxes will Select one: O…
A: We have know that agreegate demand formula given that AD=C+I+G+X-A That is we have show that tax…
Q: Do you observe a Phillips curve, a reverse Phillips curve, or no relationship in the long-run?…
A: Phillips curve is a graphical representation which depicts the relationship between the inflation…
Q: simultaneously set prices (as in the Bertrand model); and if some firm sets than other firms, then…
A: A market structure body by a solo seller, selling a unique product in the market. In a monopoly…
Q: Real GDP is a better measure of evaluating the economic growth of a nation than the nominal GDP
A: Real GDP refers to the country's GDP with the adjustments to numbers for deflation or inflation. On…
Q: (a) Find the optimal allocation (C", L"), in which Robinson Crusoe acts as a social planner. (b) Now…
A: L + R = 10 C = 4√L ……………………… eq ( 1 ) U (C, R) = CR …………………eq ( 2 ) L = 10 – R Put Value Of L In…
Q: Bank Balance Sheet Assets Liability and Equity Required Reserves: $ 0.30 million Deposits: $ 1.50…
A: Excess reserves: The required reserve ratio of a bank depicts the minimum amount of deposits a bank…
Q: Suppose the utility function for goods x and y is given by utility = U(x, y) = xy + x a) Calculate…
A: Utility maximization refers to making economic decisions that guarantee the greatest level of…
Q: a. Graph the demand and supply for real money in the appropriate diagram. Show how the demand…
A: Introduction The entire amount of currency in circulation, including notes, coins, and bank account…
Q: What amount of money deposited 25 years ago at 10% interest would now provide a perpetual payment of…
A: Given, Perpetual payment (A) = 5,000 Interest(I) = 10% = 0.10 n = 25 years
Q: How long will it take P500.00 to be four times its value if invested at the rate of 10% compounded…
A: In this problem, we'll calculate how long it will take for P500.00 to P2000 in value if invested at…
Q: QUESTION 4 If you deposit $10,000 in a bank account that pays a 5% interest compounded monthly for…
A: An effective annual interest rate is the genuine profit from a bank account or any interest-paying…
Q: Rank 1 2 3 4 5 6 7 8 9 10 Cause of Death diseases of the heart diseases of the vascular system…
A: A bar graph is a representation of tabular data graphically with the use of bars or strips. They are…
Q: Suppose that in January 2026 the government successfully carries out the type of policy necessary to…
A: Government policy is a declaration of the political initiatives, approaches, and objectives of the…
Q: Consider a consumer with quasilinear utility u(x) = 10ln(x₁) + X₂. (a) Find the Marshallian Demand…
A: Although you have asked for the explanation of subpart d only, it requires the solution of all three…
Q: 3.1 Use the following diagram to calculate total consumer surplus at a price of $12 and production…
A: At equilibrium where demand and supply are equal where price is determined at this point and total…
Q: Suppose a market with two customers. Their demands are specified by: Q1 = 100 - 2P and Q2 = 150 -…
A: While the equilibrium price is the single cost where the intentions of both consumers and…
Q: Consider the following table: Quantity 0 1 2 3 4 5 6 7 8 9 0 10 TC TFC TVC ATC 20 6 or 7 1 or 2 7 or…
A: Economies of scale exist when average cost curve decreases as output increases Diseconomies of scale…
Q: Use the wage curve and the profit curve to show the equilibriumin a model of the labour market.…
A: Wage curve and the profit curve to show the equilibrium in a model of the labor market. DIAGRAM…
Q: Using 'The Evolution of Economic Thought' book by Randy R. Grant and Stanley L. Brue as reference.…
A: Alfred Marshall was a British economist and one of the most influential figures in the development…
Q: rket for good Q is perfectly competitive. However, it features positive externalities. ners'…
A: The equilibrium output occurs where the demand and supply are equal. The equilibrium condition : MB…
Q: - The non-economic effects of unemployment include the loss of skills and self-respect, family…
A: Unemployment When a person is able and eager to work, but they are not employed, they are considered…
Q: Considering the equation 'AD=C+I+G+NX,' an increase in personal income taxes will
A: Aggregate demand is the sum of consumption, investment, government spending, and net exports. i.e.,…
Q: Suppose the economy is in equilibrium, with real interest rates equal to 4% and National Savings…
A: Introduction In the classical model, the key is that price adjustment brings about equilibrium.…
Q: Suppose that you can schedule a worker for up to 4 hours per day. The total benefit and total cost…
A: Marginal benefit refers to the additional benefit derived by employing one additional hour of labor.…
Q: Complete # 3 a & b of Problems at the end of the chapter p. 284/680=666. Describe the…
A: Introduction The total amount that the government has borrowed to cover its development budget,…
Q: Price elasticity measures the responsiveness of the quantity demanded or supplied to a good to a…
A: Economics is the study of shortage and how it impacts a variety of complex social issues, including…
Q: Felice lives and works for two periods. In the first period, she earns 520 coconuts and in the…
A: In this case, we have to discuss the budget constraint and indifference curve. Budget constraint is…
Q: Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college…
A: CSPI stands for College Student Price Index. It is a price index. There is a market basket that…
Q: Find out sources of raw materials, production process, marketing strategies, and difficulties…
A: Sources of raw materials, production process, marketing strategies, and difficulties encountered in…
Q: draw an ADAS graph at equilibrium. Suppose there is widespread concern that prices will continue to…
A: Introduction Equilibrium refers to a situation where aggregate demand is equal to aggregate supply.
Q: If the percentage change in quantity supplied is 10%, and the percentage change in price is 10%,…
A: An elastic demand is one in which the change in qty. demanded because a price change is large.…
Q: Consider the following utility function: U(x, y) = xy+x with MUx = y+1 and MUy = x. As the consumer…
A: For product x if (dMUx)/(dx)>0 marginal utility increases. (dMUx)/(dx)<0 marginal utility…
35. If an increase in income causes the quantity demanded of a good to fall, then the good
is:
(a) A normal good
(b) An inferior good
(c) A substitute good
(d) A complement good
Step by step
Solved in 2 steps with 2 images
- 4. Describe what is meant by a normal good. Provide a real-life example in your own words. What is an inferior good? How does a change in income impact the demand for inferior goods?Give examples of goods with high utility and high prices, andgoods with low utility and low prices.For most goods if a consumer's income increases his demand for the goods will do what?
- Suppose there is a single commodity that absorbs all of a consumer's income. a. What is the consumer's price elasticity of demand for the commodity? b. What is the consumer income elasticity of demand for the commodity?Suppose a 4 percent increase in income results in a 2 percent decrease in the quantity demanded of a good determine what type of good it is ?The income of consumer has got increased and the consumer's demand for good X has also increased. What type of good is good X?
- The relationship between a consumer's monthly income and monthly consumption of four products, A-D, is shown in the following table. Income $ 5,000 6,000 A 70 64 Quantity Consumed B 35 42 C 10 16 D 20 12 Which product(s) listed is(are) an example of an normal good?Q.1.14 Utility from consuming a good is understood by economists to mean; (a) how often we consume the good.(b) how much satisfaction or benefit we get from consuming the good.(c) how much it costs to buy the good.(d) how we best use the good. Q.1.15 The marginal utility of a good or service declines as one more unit is consumed because:(a) supply slopes upwards.(b) consumers are constrained by income. (c) of the law of diminishing marginal utility. (d) prices move with demand.Given the market price of a good, how does a consumer decide as to how many units of that good to buy? Explain
- Activity 1. Answer the following questions: a. Illustrate and explain how consumer equilibrium is achieved using the indifference curve? b. How do we measure utility? Explain. c. Discuss how the demand elasticity of a product changes? Give examples.3. A person who consumes wine and cheese gets a raise, so his income increases from $3000 to $4000. Show what happens if both wine and cheese are normal goods. Now show what happens if cheese is an inferior good.Joseph, who consumes wine and cheese, gets a raise, so his income increases from {300 to 700. a. What happens if both wine and cheese are normal goods? b. What happens if cheese is an inferior good?
