Imagine that Indiana State raises the income tax rate by 30%, what possible behavioral response might an IU employee earning $70,000 per year exhibit? Group of answer choices Relocate to Kentucky. Reduce working hours. Increase working hours. The JJ

Please select correct group

Consider the representative consumer who decides consumption and leisure. Theenvironment is the same as in Lecture 5. Keep the same notation. The preference is givenby U (C,L) = αln C + (1 −α) ln L. Assume h = 1, i.e., the time endowment is one day.(a) Write down the utility maximization problem.(b) Derive the demand for consumption and the supply for labour.(c) Suppose the non-wage income π −T increases while the wage rate w falls at the sametime. The size of the changes can be different. Determine the effects on consumptiondemand and labour supply (i.e., leisure demand). Use the indifference map to explainyour results in terms of income and substitution effects for the following cases:(i) The increase in π −T exactly cancels out the drop in w, i.e., |∆ (π −T)|= |∆w|.(ii) The increase in π −T is greater than the drop in w, i.e., |∆ (π −T)|> |∆w|.(iii) The increase in π −T is smaller than the drop in w, i.e., |∆ (π −T)|< |∆w|.(d)  Suppose the utility function is Cobb-Douglas: U…

QUESTION 35 Following from the model described in the previous question. What is the budgt constraint facing the individual, and what is the optimal condition for individual choices of consumption and fertility? 1 The budget constraint is wt- pn; = C;i The optimal condition is Ct pnt 1 The budget constraint is w, -p= C;; The optimal condition is Ct nt 1 The budget constraint is Wt-p3 Ct; The optimal condition is Ct %3D The budget constraint.is w -p-n;= C; The optimal condition is Ct = Opn;

I JUST WANT THE DIAGRAM FOR EACH PART. PLEASE DRAW THE DIAGRAMS, DONT TYPE IT!!!!!! WRONG ANSWERS WILL BE REPORTED. Consider the representative consumer who decides consumption and leisure. The preference is given by U (C,L) = αln C + (1 −α) ln L. Assume h = 1, i.e., the time endowment is one day. Suppose the non-wage income π −T increases while the wage rate w falls at the same time. The size of the changes can be different. Determine the effects on consumption demand and labour supply (i.e., leisure demand). Use the indifference map to explain your results in terms of income and substitution effects for the following cases: (i) The increase in π −T exactly cancels out the drop in w, i.e., |∆ (π −T)|= |∆w|. (ii) The increase in π −T is greater than the drop in w, i.e., |∆ (π −T)|> |∆w|. (iii) The increase in π −T is smaller than the drop in w, i.e., |∆ (π −T)|< |∆w|.

T/F Explain Any transitive preference is complete.

Kevin has a wage income of $10,000 in the present and $15,000 in the future.  His utility is given as U = min (4cp, 5cf), where cp denotes consumption today and cf consumption in the future.  The relevant interest rate is 10%. ​ a. If the interest rate were to increase to 15 percent,would Kevin be better off or worse off?  Explain. b.​ Find two measures to indicate how much better off or worse off Kevin is as a result of the increase in interest rates.  Explain.

A house was for sale for 9 months with no offers at $350,000. It was taken off the ma sold in 2 weeks. Which of the following behavioral economic concepts could explain Hyperbolic discounting of housing values Time inconsistency of preferences Spurious information Framing effects

Find the derivative of the function. y= In(6x) Find the derivative of the function. y= In(x³) Find the derivative of the function. f(x) = In(8x+9) Find the derivative of the function. y= In(3x²-x)+6x Find difp In(+9). dq dp dq Find y' y=2x-In(8x) y' = A

This problem considers the decisions of a consumer whose preferences are given by u(C, 1) = C + y log 1, in which is the quantity of consumption and I is the quantity of leisure. The consumer faces two constraints. The time constraint is given by 1 + N = 1 with N³ as the time spent working (or the labor supply). Assume that 0 < x < 1. The main advantage of working is the wages consumers receive. Consumers take wages as given (outside of their control) and obtain wage income equal to w Nº. The budget constraint is C = wN+T-T, with as real dividend income and T as the real lump-sum taxes paid to government. Assume that an interior solution always exists in the optimal consumption-leisure choice.