utility functions U(c1, c2) = c1C2, where c1 is consumption this year and c2 is consumption next year. Rats eat 10% of any grain that is stored for a year. How much grain could the villagers consume next year if they consume 1,000 bushels of grain

A consumer can borrow or lend freely at the market interest rate of r=100% per period. [If it's helpful, think of the "period" as being a few decades.] Her utility function is: U = In(ct) + (1/2)In(ct+1) She earns Yt=100 and Yt+1=100. But in period t+1 she will have to pay a tax of Tt+1=40. If she's maximizing her utility function subject to the IBC, how much will she consume in period t?

Explain which of the following is the independent variable and which is the dependent variable for each of the following examples. Once you determine the price of a flash drive at the college bookstore, you will decide how many flash drives to buy. You will decide how many credit hours to register for this semester once the university tells you how many work-study hours you will be assigned. You anticipate earning a higher grade on your economics exam because you studied more hours in the weeks preceding the exam.

13. Suppose that AS = 3SAT + 2SAX and that today's price is S(0) = 50. Find (i.e., derive) the PDF for the price of S(1), the price one year from now.

An economist is interested in how the price of a certain item affects its monthly sales. At a price of $p, a quantity, q, of the item is sold each month. Suppose that we write q=D(p). Using complete and descriptive sentences, explain the meaning of each of the following statements: a) D(500) = 2,000. b) D'(500) =-25.

Find the marginal utility of an additional unit of good z for a consumer with utility function u (a, y) = zi yi when their current consumption level is 2 and y = 16.