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- I don't understand how to gtaphically change the resulting fators.After a destructive hurricane in Southeast Texas, gasoline prices around the country increased dramatically. Demand did not decrease much primarily because O there is a long time period under consideration O there are very few substitutes for the product. O there is a small amount of this product. O the cost of the product is a rclatively small percentage of onc's incomehe Calculus of Utility Maximization and Expenditure Minimization -End of Appendix Problem uppose that there are two goods, X and Y. The price of X is $2 per unit, and the price of Y is $1 per unit. There are two onsumers, A and B. The utility functions for the consumers are UA(X,Y)= X05.05 UB(X,Y)= X0.8y0.2 Consumer A has an income of $100, and Consumer B has an income of $300. Using Lagrangians, solve for the optimal bundles of goods X and Y for both consumers A and B. a. The optimal bundle for consumer A is X = 25 and Y* = 50 - b. The optimal bundle for consumer B is X = 120 and Y* = 60
- Suppose an indinidual has the following utility finction Urey)-2+2" writh a strictly ineveaseng morrginal rate of substitntion. and income of 3 The price of y is $4 CPpi ) The intial price of x is $lcre=) and then increases to 3 px=3). Find the chonge in the quantidy consumed of X.IHow much of the chonge is the income effect? How much by the Substitution effect? Evplan in Econ terms erplainedl byWhy tY not substituted for T?A website offers a place for people to buy and sell emeralds, but information about emeralds can be quite imperfect. The website then enacts a rule that all sellers in the market must pay for two independent examinations of their emerald, which are available to the customer for inspection. How would you expect this improved information to affect demand for emeralds on this website? How would you expect this improved information to affect the quantity of high-quality emeralds sold on the website?
- The following table shows three demand schedules for a person who likes toplay football and/or go swimming. In scenario S1, his income is $100,000 per yearand swimming cost $18 each. In scenario S2, his income is also $100,000 peryear, but the price of swimming rises to $22 per round. And in scenario S3, hisincome increases to $140,000 per year while swimming cost $22 per round.A. Use data under S1 and S2 to calculate the cross elasticity of demand for footballat all three prices. (Use the midpoint formula) Is the cross elasticity the same at allthree prices? What type of goods are football and swimming? Why?b. Use data under S2 and S3 to calculate the income elasticity of demand forfootball at all three prices. (Use the midpoint formula) Is the income elasticity thesame at all three prices? Is football an inferior good? Why?Quantity DemandedPrice S1 S2 S3$100 30 20 3070 50 30 6040 80 40 100heABCCompanyLtd.HasapproximatedthemarginalrevenuefunctionforoneofitsproductsbyMR=20x – 2x 2 .ThemarginalcostfunctionisapproximatedbyMC=81 – 16x+x 2 .Determinetheprofitmaximizingoutput,thetotalprofit,thetotalrevenuefunction,anddemandfunctionConsumers maximízestheirutiliy when Ybren a. The marginal utility of each good is equal 6. The marginal utility per rial spent on each good is equal to zero across ll commodities c. The ratio of the prices facing any one consumer is equal to that facing any other consumer (d.) None of the above, PE = -0-8
- Please Show Each and Every Working VERY CLEARLY! utilityGenerally speaking the demand for a good will be more inelastic O if the good is very specific and narrowly defined. O the greater the time period being considered. O if the good is a luxury. O if the good makes up a small part of an individual's budget. 21 ttv MacBook Pro F8 F9 F7 D00 F4 F6 F5 F3The following graph shows the budget constraint for a household who has to choose between consumption goods and health care services. Please explain tho difference between the two lines. Budget constraint Corsumer goods X Y(H) = pX + qM Y(H) = pX + qM Haalth care services M Y-Incone H=health ppeice of consunmer goods 9*peice of healh care services