5.9 Share elasticities In the Extensions to Chapter 4 we showed that most empirical work in demand theory focuses on income shares. For any good, x, the income share is defined as sx = Pxx/I. In this problem we show that most demand elasticities can be derived from corresponding share elasticities. a. Show that the elasticity of a good's budget share with respect to income (e,, 1 = dsx/ÔI · I/ Sx) is equal to ex, 1 – 1. Interpret this conclusion with a few numerical examples. b. Show that the elasticity of a gooď's budget share with respect to its own price (es, Pe = dsx/dpx · Px/Sx) is equal to ex, p. + 1. Again, interpret this finding with a few numerical examples. c. Use your results from part (b) to show that the "expenditure elasticity" of good x with respect to its own price [ex p., p. = (Px · x)/@px · 1/x] is also equal to ex, p. + 1. d. Show that the elasticity of a good's budget share with respect to a change in the price of some other good (es, Py = Osx/Opy · Py/$x) is equal to ex, p.- e. In the Extensions to Chapter 4 we showed that with a CES utility function, the share of income devoted to good x is given by sx = 1/(1+p,P,*), where k = 8/(8 – 1) = 1 – 6. Use this share equation to prove Equation 5.56: ex, p. = -(1 – sx)o. Hint: This problem can be simplified by assuming px= Py» in which case s, = 0.5.

f (x, y) = 3x² + y³ + 4xy² +8 Of(x,y) dr Of(x,y) dy What is the value of when x = 4 and y = 5? (Note: the answer may not be a whole number, so please round to the nearest hundredth) (Note: the numbers may change between questions, so read carefully)

Please no written by hand and no emage

No written by hand solution

In terms of total number of businesses by form of ownership, corporations are more common than sole proprietorships. ( a) True ( b) False

Governments often require people to obtain insurance; for example, all drivers are required to carry auto insurance to cover damages to others in the event of a crash. Homeowners are often required by banks to carry insurance on their home.  (a) Why do these requirements exist?    (b) Would they be necessary if people truly recognized the risk they faced?    (c) One characteristic of an overconfident person is that she is continually surprised when what she thought was unlikely or

You have been driving for about 3 hours early in the morning which of the following indicates that you might be fat

In a given community, the unemployment rate is 3.1% and their working-age population is 1.2 Million. Labor force participation was 92% in this community in December of 2009.  In January 2010, this community takes in 80,000 refugees, 65,000 of which are working-age adults. All working-age refugees will be looking for a job in January and if they cannot find one will continue to look until they do. If 70% of the refugees start a new job in January,  what will be the Unemployment rate in this community in February 1st? ( Please round your answer to include 2 decimal places, do not include the percent sign in the answer. That is, If you find 8.33333% is the new unemployment rate, input your answer as 8.33)