John earns $120 per week and likes to consume wine and cheese. His utility function is of the form U(x.y)-x1/2y3 where x denotes the amount of cheese consumed and y the amount of wine. His marginal utilities are MU MUy and 2r1/2 calculate the expenditure

Consider a small country that exports steel. Suppose that a “pro-trade” government decides to subsidize the export of steel by paying a certain amount for each ton sold abroad. How does this export subsidy affect the domestic price of steel, the quantity of steel consumed, and the quantity of steel exported? How does it affect consumer surplus, producer surplus and government revenue? (Hint: The analysis of an export subsidy is like the analysis of a tariff.)

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Number 34

how many days in a year