What does point D on this graph represent? O An optimal choice O A choice on the budget constraint O An impossible choice given the income O A choice that would result in income left over
Q: Public goods tend to be difficult to produce in a profitable manner by private firms because of too…
A: Public good refers to the good that meets the two conditions: non-exclusion and non-rival. The…
Q: 20. Working in a slaughterhouse is much riskier and more unpleasant than working in a bookstore. As…
A: An efficiency wage is the wage paid to a skilled worker over and above the minimum wage rate in…
Q: Economists who forecast a future of secular stagnation believe that the ▼ demand supply…
A: Secular stagnation is a term used to describe a period of slow economic growth and low inflation. It…
Q: Demand 140 130 120 110 100 90 80 Supply 1 60 Price $4.00 4.25 70 4.50 80 4.75 90 (5.00 100 5.25 110…
A: The following information about price, demand and supply is provided:Price DemandSupply…
Q: Explain what stability means in the context of the econ/stats class.
A: Economic stability refers to a state of an economy where key economic variables, such as prices,…
Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…
A: Given information:Ike Bikes is a manufacturer of bikes, currently producing bikes in its only one…
Q: 1 Salads 1 2 3 5 6 7 Assume Kerri's budget constraint is represented in the graph shown. If Kerri's…
A: A consumer's ability to purchase any combination of two products, given their income and the prices…
Q: part A is incorrect and Part B is incorrect can you re try
A: Present Worth, also known as Net Present Value (NPV), represents the total value of cash flows (both…
Q: According to Keynes's Consumption function, a) Consumption spending is a function of…
A: Marginal Propensity to Consume (MPC): The proportion of additional income that a consumer will spend…
Q: Which of the following statements are true about this natural monopoly? Check all that apply. In…
A: A natural monopoly is a situation where new firms are barred from entering the market as the market…
Q: Price P3 P a O94; P3 O 92: P₂ O 91; Ps. 93; P4. MC O qi; Pi MR 91 9₂ 93 Q4 ATC Refer to Exhibit…
A: In a monopoly market structure, There exists a single seller. There exists high barriers to entry…
Q: Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: 13+ 12 11+ 10…
A: In perfect competition, There exists a large number of buyers and sellers. The firm produces…
Q: 1. Problems and Applications Q1 Consider the following four situations: A. Actual inflation is 6…
A: In the short run, Phillips describes the relationship between inflation and the unemployment rate.…
Q: Demand is said to be elastic if a. the price of the good responds substantially to changes in…
A: Elasticity of demand helps us understand how responsive the quantity demanded of a good is to…
Q: Question 1 What part of the strategic plan provides managers with an estimate of future revenue to…
A: This can be described as a concept that shows the capacity of the purchaser to purchase the products…
Q: Restrictive practices are characterized as.... Practices that promote competition by restricting…
A: Restrictive Practices as the name suggests refrain the associated party to do a task or refrain it…
Q: According to purchasing power parity, when a country's central bank decreases the money supply, a…
A: Purchasing power parity (PPP) is a theory that states that the exchange rates between currencies are…
Q: Consider each scenario independently. In each of the following cases tell me, using written and…
A: The demand curve is the curve that represents the relationship between demand and price, price is…
Q: Suppose the Fed sells $100 million of U.S. securities to the security dealers. If the reserve…
A: The reserve are the part of deposit that is kept aside by the banks as per the rules of central…
Q: The monetary policy options that can prevent a decrease in the risk premium on risky bonds from…
A: This can be described as a concept that works as a tool of the government To make sure that the…
Q: The graph illustrates an industry in which many firms operating in perfect competition are taken…
A: In a perfectly competitive industry, firms motive to attain the maximum profits by producing at the…
Q: Refer to Figure 14-2. When price falls from P3 to P₁, the firm finds that fixed cost is higher at a…
A: A perfectly competitive firm can earn short run profit and losses. This decision leads to further…
Q: The following graph shows the market for wheat in Canada, where Dc is the demand curve, Sc is the…
A: An export subsidy is a payment to the exporting firm by the government of the exporting country to…
Q: QUESTION 1 MV = PQ M = 200,000 V = 5 Q = 10,000 P = 100 QUESTION 2 01. Given the above model, what…
A: The quantity theory of money is given by:The quantity theory of money explains the relationship as…
Q: QUESTION 10 PRODUCT product X product Y product Z Ob) 153 Oc) 1.2 O d) 150 O e) 200 QUESTION 11 (b)…
A: Consumer Price Index or CPI measures the changes that occur in the prices of goods or services. It…
Q: The diagram below depicts the economy of Knightlandia, an open economy with government. C₂ + 4 +…
A: Aggregate expenditure is the sum of consumption, investment, government spending and net export in…
Q: The maximum profit this firm can earn is 18 16 A OD TC " while the maximum total revenue it can earn…
A: Profit refers to the difference between total revenue and total cost .Profit = Total Revenue - Total…
Q: Can I see a graph for 1. (b) to illustrate the price of coffee beans increasing
A: The demand curve shows an inverse relationship between price and quantity demanded. The supply curve…
Q: Suppose Lando Calrissian owns a smuggling business whose total revenue is $30,000 per month. The…
A: To determine whether Lando Calrissian should join the Rebellion or continue his smuggling…
Q: Europe and Aisa both fall into deep economic recessions. What impact will this have on the U.S.…
A: There will be a shift in aggregate demand when there are changes in net exports. Any event that…
Q: a crash in the value of wealth held in real estate and stock markets a population boom generation…
A: The problem you provided relates to the field of macroeconomics and, more specifically, to the…
Q: Tom is considering purchasing a £20,500 car. After five years, he will be able to sell the vehicle…
A: The cost structure of a car is given in the table below:Purchasing cost (initial cost)20,500The…
Q: Attempts Average / 3 4. Effects of a tariff on international trade The following graph shows the…
A: Demand: The quantity of a good or service that consumers are willing and able to buy at various…
Q: The following graph shows the loanable funds market. For each of the given scenarios, adjust the…
A: Loanable funds market, is the market where funds are being borrowed and lent.Lending of funds is…
Q: If the original price and quantity demand are $0.50 and 50 respectively, and there is an increase in…
A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…
Q: The rising demand for health-care industry workers is due to the following factors, except…
A: The healthcare industry includes a broad range of services that focus on people's and communities'…
Q: MC Qu. 41 If the variable cost curve is a straight... If the variable cost curve is a straight line,…
A: The variable cost refers to the cost that changes with change in the level of output. It falls to…
Q: The accompanying graph illustrates an economy in long-run equilibrium which is denoted by point ELR-…
A: Long-run equilibrium refers to a state in which the short-run aggregate demand curve, short-run…
Q: What uniform annual amount should be deposited each year in order to accumulate P100,000 at the end…
A: The interest rate is the sum charged on top of the main by a lender to a borrower for the…
Q: Since the 1970s, the percent of income spent on apparel in the U.S. has. O increased O not changed O…
A: Income is the cash or earnings that a person, family, business, or other entity receives on a…
Q: Production function is Z = 2L+10K where Z represents the amount of output produced, L = labour…
A: Production function: Z = 2L + 10Kwhere Z is the amount of output produced. L is labor hired and K is…
Q: 6-30 The Johnson Company pays $1700 a month to a trucker to haul wastepaper and cardboard to the…
A: A financial report that focuses on the inflow and outflow of cash over a given time period is…
Q: 2. Individual demand and consumer surplus Consider the market for hyperbaric chambers. The market…
A: Consumer surplus is the difference between the price a buyer is willing to pay and the price they…
Q: The following graph plots a supply curve (orange line) for a group of recent graduates looking to…
A: Producer surplus is the area below price and above supply curve. The higher the price , higher will…
Q: P = 1800 Qm C(qi) = 300qi 1. Find the quantity and price in a perfectly competitive setting. a.…
A: In perfect competition, the market setup consists of numerous small businesses offering the same…
Q: In no more than 500 words critically assess and explain how the bioeconomic model explains the…
A: The dynamics of fish populations and the financial viability of fishing operations are explained by…
Q: Which of the following statements about the price elasticity of demand are true? (Check all that…
A: The price elasticity is calculated as the percentage change in quantity demanded divided by the…
Q: Check all of the following that are true. The Korean peninsula provides a useful natural experiment…
A: The Korean peninsula is a unique example of two countries with the same cultural heritage and…
Q: The following graph shows the loanable funds market in the United States. It plots both the demand…
A: A budget surplus happens when income more than expenditures. The term often refers to a government's…
Q: 3. Write the following system of equations in the matrix form AX = B₁ Y 1 C where X = Y=C+I+Go…
A: The system of equations:In the above system of equations, the endogenous variables are Y, C, and…
Step by step
Solved in 4 steps
- Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers. Praxilla gets 30 units of marginal utility from her first poem 27 units of marginal utility from her second poem 24 units of marginal utility from her third poem, and so on, with marginal utility declining by three units for each additional poem. Praxilla gets six units of marginal utility for each of her next three cucumbers consumed, five units of marginal utility for each of her next three cucumbers consumed, four units of marginal utility for each of the following three cucumbers consumed, and so on, with marginal utility declining by one for every three cucumber consumed. A poem costs three bronze coins hut a cucumber costs only one bronze coin. Praxilla has 18 bronze coins. Sketch Praxillas budget set between poems and cucumbers, placing poems on the vertical axis and cucumbers on the horizontal axis. Start off with the choice of zero poems and 18 cucumbers, and calculate the changes in marginal utility of moving along the budget line to the next choice of one poem and 15 cucumbers. Using this step-by-step process based on marginal utility, create a table and identify Praxillas utility—maximizing choice. Compare the marginal utility of the two goods and the relative prices at the optimal choice to see if the expected relationship holds. Hint: Label the table columns: 1) Choice, 2} Marginal Gain from More Poems, 3) Marginal Loss from Fewer Cucumbers, 4) Overall Gain or Loss, 5) Is the previous choice Optimal? Label the table rows: 1) 0 Poems and 18 Cucumbers, 2) 1 Poem and 15 cucumbers, 3) 2 Poems and 12 cucumbers, 4) 3 Poems and 9 Cucumbers, 5) 4 Poems and 6 cucumbers 6) 5 Poems and 3 Cucumbers, 7) 6 Poems and 0 Cucumbers.Study the following indifference curve graph below and answer question that follows: O a Figure 1 Income O b 300----- A 200 O e 100 75 a. At point A b. At point B C. At point G 023 78 Hours of leisure At which point is the consumer having a maximum level of satisfaction. O d. At point D U At point E B Clear my choice G D E H 16ceriuppose that Isaiah has a weekly fixed budget and spends it all on haircuts and ice cream. At his current combination arof consumption, the marginal utility of the last dollar spent on haircuts is greater than the marginal utility of the last dollar spent on ice cream. Has Isaiah maximized his utility? A C E Yes, because changing his current consumption combination will reduce his total utility B No, because he can increase his total utility by purchasing more haircuts and D fewer ice creams Yes, because he has purchased 2 goods in proportion so that he can get- the maximum utility from each Yes, because he purchased the maximum possible with a limited budget No, because he can increase his total utility by purchasing fewer haircuts and more ice creams
- stion 20 "When you refuse to drink one more cup of coffee, you are making the statement that the marginal utility of this additional cup is:" O Positive but increasing O Positive but decreasing O Negative O ZeroMylie’s total utility from singing the same song over andover is 50 utils after one repetition, 90 utils after tworepetitions, 70 utils after three repetitions, 20 utils afterfour repetitions, 250 utils after five repetitions, and 2200utils after six repetitions. Write down her marginal utilityfor each repetition. Once Mylie’s total utility beginsto decrease, does each additional singing of the songhurt more than the previous one or less than the previousone?Quèstion 16 Which of the following is NOT the goal of the consumer? O maximize utility O be on the highest indifference curve spend more income in the current time period than in the future O maximize satisfaction
- My Moodle My Favou tion 6 An individuals utility function is given by ret rered U = 340x1 + 960x2 + 2x1x2 – 2a- a/2, ed out of when the weekly amount of leisure is x1 132 and earned income is 12 = 760 answer the following: 1. The marginal utility of x1 is ag tion 2. The marginal utility of x2 is 3. Use the small increments formula to estimate the change in the utility when r1 decreases by 1 and x2 increases by 4. The change = 4. Does the law of diminishing marginal utility hold? 5. The MRCS at a given values is Enter non-integer numerical values as decimals to at least 3 decimal places. Note: you must use a. and not , for a decimal point. Next page revious page Mock paper ► - Working from video in SVG Jump to... format¦ What can be the implications of a positively sloping indifference curve?Assume Tom is on budget constraint AC and the price of a hamburger is $4.00. Tom's monthly income is . Tom's monthly budget constraint 40 A OD B 20 Number of hamburoers per month O 80 100 160 O 240 Number of hot dogs per month
- Amadea spends all her income on pizza,chocolate milk, and music streams. The price of pizza is $4 per slice and price ofchocolate milk $2 per bottle. At Amadea's current consumption level, her marginalutility for pizza is 50 units per slice and for music 100 units per stream. Assuming thatAmadea is a utility maximizer, how much is (a)her current marginal utility for a bottleof chocolate milk, and (b) the price of streams she buys. Show your work. [Hint: Ch 6:Utility-maximizing formula)Pls help with thsi question I am stuck Given the image attatched: 1.Given the above Marginal Utilities and prices to form the optimality condition for utilitymaximization. According to this optimality condition, what must be the ratio of Films toBooks in an optimal consumption bundle? 2. Given your answer to Q9, what must be the household’s optimal consumption of F & Bgiven their income (m)? 3. Suppose that the price of Films changed from $2 to $4. What would need to happen tothe MRS according to the optimality condition in Q9 if the household wanted to keepmaximizing its utility?Question 9 If we observe that a consumerâ s budget constraint has shifted inward, we can assume that the consumer will buy O more normal goods and fewer inferior goods O more normal goods and more inferior goods O fewer normal goods and more inferior goods fewer normal goods and fewer inferior goods O O
