Draw a graph of a consumption function (with disposable income on the x-axis and consumption on the y-axis). b) On the graph from Part a, show how we can “see” the Marginal Propensity to Consume (MPC) and provide a brief explanation.
Q: Question 13 A Nigerian household would have to make a decision on whether to purchase Starlink's…
A: The problem of what, how, and for whom to produce is a fundamental economic question that arises due…
Q: Use the following graph for a competitive market to answer the question below. $30 Price 25 20 15 10…
A: As we know that price floor is a minimum price for a commodity, or a service imposed by the…
Q: A hospital expects 5,000 admissions for the year, but that number could vary by 1,000 more or less.…
A: Operating leverage is a measure of how sensitive a company's operating income is to its fixed costs.…
Q: 3. A local contractor is considering the production of the fireworks. The variable cost per unit is…
A: In economics, production is the most common way of making goods and services. It is the…
Q: As Starlink is made available to more and more countries, we know for certain that for Starlink...…
A: Average cost is the per-unit cost of production, which is calculated by dividing the total cost of…
Q: At the utility max point the rate at which a consumer is willing to trade C0 for C1 is equal to 1…
A: The term "intertemporal budget" refers to the allocation of resources or expenditures over time,…
Q: Before the financial crises of 2007-2009, what were the monetary policy tools that the Fed relied…
A: The set of policies that the central bank of a nation uses to curb or control the scenarios of…
Q: profound impact on labour markets. It will likely lead to enormous gains in productivity (analogous…
A: The labor market refers to to the interaction among employers and workers in the economy. It…
Q: The graph depicts a monopolistically competitive firm. Assuming the firm's ATC is ATC', the firm's…
A: A monopolistic competitive firm is a type of market structure where there are many producers,…
Q: Question 11 Assuming that there were other services providers in Nigeria besides FiberOne before the…
A: Under a monopoly, a single seller faces the entire market demand on his own. Here, the seller…
Q: You are considering two options for your next family vacation. You can visit Disney World or…
A: Expected utility refers to an idea in decision theory and economics that evaluates a singular's…
Q: What two monetary policy tools does the Fed now rely on in changing its target for the federal funds…
A: Monetary policy refers to the actions and measures taken by a central bank or monetary authority to…
Q: me following graph shows the market for loanable funds in a closed economy. The upward-sloping…
A: The market in which the person or institution having excess money transacts to exchange the same…
Q: Explain, with the aid of a graph, the effect of an increase in income on the equilibrium price and…
A: Meaning of Inferior Good:The term inferior good refers to a negative or inverse relationship between…
Q: Consider the following linear programming model: Max: X₁²+ X₂ + 3X3 Subject to: X₁ + X₂ £ 3 X₁ + X₂…
A: Linear programming problem has following assumptions.a. certaintyb. proportionalityc. linearityd.…
Q: A Nigerian household would have to make a decision on whether to purchase Starlink’s internet…
A: Economic concepts refer to fundamental ideas or principles that form the basis of understanding and…
Q: Explain your position on this issue. Identifypositive and normative reasons for your deci-sion. Are…
A: The term "working poor" refers to individuals or households who are employed but earn wages that are…
Q: Part 1 Write down the total water use for each district. Make sure to include the units and be…
A: It is given that there are 2 water districts namely water district 1 and water district 2. Water…
Q: Compute the firm’s profit for A, B, and C and enter this data into the table.
A: Given are the weekly costs of production of products A, B and C at $ 10, $ 130 and $ 200…
Q: Calculate the rate of growth of output per worker.
A: Y/L = A(K/L) y = A k rate of growth of capital per worker = dkdk = savings - ( depreciation + pop…
Q: You are considering investing in ICI. Suppose ICI is currently undergoing expansion and is not…
A: Given,Expected growth rate: for first years. afterwards
Q: Assume Elias was going to spend all of his time on wristbands but then decides to spend 4 hours on…
A: Opportunity cost refers to the value of the next best alternative that is foregone or sacrificed…
Q: business of transactions that result in positive externalities
A: I'll explain the question to my best understanding. If there is any confusion, kindly ask in follow…
Q: 0 E Multiple Choice O O О н G Which point is not on the perfectly competitive firm's short-run…
A: The portion of the marginal cost curve that lies above the average variable cost curve is defined as…
Q: 'You have just been employed by Bongo company as a Monitoring, Evaluation and Learning manager. The…
A: As the newly appointed Monitoring, Evaluation, and Learning (MEL) manager at Bongo company, it is…
Q: Question 5 If the Nigerian government were to enforce a price floor of US $20... a) Both Starlink…
A: A price floor is a government-imposed minimum price set above the equilibrium price in a market. It…
Q: Consider the case of greenhouse gas (GHG) sequestration (removal from the atmosphere) as a public…
A: The total net benefit refers to the difference between the maximum willingness to pay and the actual…
Q: By considering situation below Option 1: Invest RM1000 and received RM110 monthly for 10 months…
A: Present worth analysis, also known as present value analysis or discounted cash flow analysis, is a…
Q: supply of reserves is determined by: 1. The Fed's provision of non borrowed reserves through open…
A: the supply of reserves refers to the total amount of money that banks have available to lend. This…
Q: The government sets a minimum price for prof. Ernst's brussel sprouts. This i Group of answer…
A: Price support is a policy mechanism employed by the government to establish a minimum price for a…
Q: Why did the Fed abanon its traditional approach for setting the fed funds rate? (Select all that…
A: The Fed abandoned this traditional approach in 2008 because its large-scale asset purchases during…
Q: Suppose the theory of purchasing power parity (PPP) is true. If inflation is higher in Eurozone than…
A: The theory of purchasing power parity (PPP) is a financial idea that endeavors to make sense of the…
Q: III. Demand and Supply Together Table 3: Demand and Supply Together Qd 10 15 P $4.00 $3.50 $3.00…
A: A market is said to be in equilibrium, if at the given market price, the quantity demanded is equal…
Q: Assuming that there were other services providers in Nigeria besides FiberOne before the entry of…
A: Under a monopoly, a single seller faces the entire market demand on his own. Here, the seller…
Q: Assume the market demand function of gasoline is QD = 500 – 50P, in which QD is at a unit of…
A: If the amount demanded of a product considerably fluctuates in response to price fluctuations, it is…
Q: Question 11 Price & $40 $30 $20 $10 0 $2.500 O $500 O $2,250 150 Quantity Referring to the graph…
A: Monopoly is a market structure where there is a single seller and a large number of buyers. Thus, a…
Q: Don Garlis is a landscaper. He is considering the purchase of a new commercial lawn mower, either…
A: EUAC stands for Equivalent Uniform Annual Cost. The EUAC formula converts upfront costs into an…
Q: Use the following graph for a market to answer the question below. Price 0 Q₁ Quantity Which of the…
A: Equilibrium price refers to the price at which the quantity demanded by consumers matches the…
Q: Draw and label a graph that depicts a linear, downward-sloping demand curve for beef brisket. Assume…
A: A demand curve shows the relationship between price of a good and quantity demanded. The demand…
Q: You observe the following exchange rates for the Chinese juan (CNY). Swiss franc (CHF), and US…
A: A trading strategy that takes advantage of discrepancies in exchange rates between three different…
Q: elivery van can be purchased for $20,000. At the end of its useful life (8 years), the van can be…
A: PW of depreciation can be described as the Present Worth of Depreciation. It is a financial concept…
Q: Consider a firm in a competitive industry. The firm's average cost curve and marginal cost curve are…
A: Equilibrium is where the demand curve intersects the supply curve. In perfect competition, In short…
Q: For this problem, you will analyze the following componen o ...consumption [variant 1]...…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: d. For some N, what is the break-even A,? e. How many firms will there be in equilibrium?
A: The break-even fixed cost for firm N is 0.005 * N. Therefore, for N = 20, the break-even fixed cost…
Q: Starlink is a satellite-based internet service. It is set to be rolled out elsewhere on the…
A: The types of services given in the question are substitutes as can be used in place of each other to…
Q: Supply chain shortages have limited the number of microchips available to car manufacturers in the…
A: Quota refers to the limit on the quantity of a product that the suppliers can supply in the market.…
Q: I/PX1 5) In this case, are good X and good Y substitutes or complements, and why? 6) In this case…
A: The substitution effect is attributed to the decrease in the quantity demanded of a good primarily…
Q: i, the valuation of the object is uniformly distributed on [0,1]. The valuations of the two bidders…
A: Nash Equilibrium:Nash equilibrium is a concept in game theory that describes a stable state in a…
Q: P=$/Q 100 95 90 85 80 75 70 65 60 55 50 semenangso 45 40 35 30 25 20 15 D before stay at home order…
A: The mix of demand and supply influences pricing, production levels, and allocation of assets.…
Q: "It's hard for many of us to imagine a world without instant, limitless internet access. Some have…
A: Income elasticity is a term used in economics to describe how responsively demand for a specific…
- a) Draw a graph of a consumption function (with disposable income on the x-axis and consumption on the y-axis).
- b) On the graph from Part a, show how we can “see” the Marginal Propensity to Consume (MPC) and provide a brief explanation.
Step by step
Solved in 4 steps with 1 images
- Consider the hypothetical country of Kejimkujik. Suppose that national income in Kejimkujik is $300 billion, households pay $100 billion in taxes, household consumption is equal to $160 billion, and the marginal propensity to consume (MPC) is 0.6. On the following graph, use the blue line (circle symbol) to plot the economy's consumption function. Consumption Function050100150200250300350400450500500450400350300250200150100500CONSUMPTION (Billions of dollars)DISPOSABLE INCOME (Billions of dollars) Suppose now that Kejimkujik’s national income increases to $330 billion. Assuming the amount paid in taxes is fixed at $100 billion and that MPC = 0.6, what is the new amount of household consumption? $148 billion $219.4 billion $220.6 billion $178 billionConstruct a consumption function from the data given here and determine the MPC. Given the consumption function in the above question, what is the relationship between disposable income and consumption?b) With an example, elaborate the consumption function
- Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.50. That is, if disposable income increases by $1, consumption increases by 50c. Suppose further that last year disposable income in the economy was $400 billion and consumption was $350 billion. On the following graph, use the blue line (arcle symbol) to pict this economy's consumption function based on these data. CONSUMPTION (Bions of dollars) ) 700 600 500 400 300 200 100 0 -100 9 100 200 300 400 500 000 DISPOSABLE INCOME (Billions of dollars) 700 000 From the preceding data, you know that the level of savings in the economy last year was 3 economy is billion and the marginal propensity to save in this Suppose that this year, disposable income is projected to be $600 billion. Based on your analysis, you would expect consumption to be 3 billion and savings to be S billion,Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.75. That is, if disposable income increases by $1, consumption increases by 75¢. Suppose further that last year disposable income in the economy was $500 billion and consumption was $450 billion. On the following graph, use the blue line (circle symbol) to plot this economy's consumption function based on these data.Complete the following table:a. Show the consumption and saving schedules graphically.b. Find the break-even level of income. Explain how it is possible for households to dissave at very low income levels.c. If the proportion of total income consumed (APC) decreases and the proportion saved (APS) increases as income rises, explain both verbally and graphically how the MPC and MPS can be constant at various levels of income.
- Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.75. That is, if disposable income increases by $1, consumption increases by 75¢. Suppose further that last year disposable income in the economy was $500 billion and consumption was $450 billion. On the following graph, use the blue line (circle symbol) to plot this economy's consumption function based on these data. Fill in the blanks From the preceding data, you know that the level of saving in the economy last year was ____________billion and the marginal propensity to save in this economy is ___________. Suppose that this year, disposable income is projected to be $700 billion. Based on your analysis, you would expect consumption to be _______ billion and saving to be ________ billion.Draw the consumption function for the economy of Macroland C= 60+0.7Y with aggregate Income levels of $100, 200, 300, 400, 500 on the X axis and the corresponding aggregate consumption on the Y axis. Label the graphs and plot all points of income and consumption on the graph.Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.50. That is, if disposable income increases by $1, consumption increases by 50¢. Suppose further that last year disposable income in the economy was $450 billion and consumption was $400 billion. On the following graph, use the blue line (circle symbol) to plot this economy's consumption function based on these data. CONSUMPTION (Blions of dollars) 700 800 500 400 300 200 100 0 -100 0 O ہے 100 200 300 400 500 600 DISPOSABLE INCOME (Billions of dollars) 700 800 10 Consumption Function From the preceding data, you know that the level of saving in the economy last year was economy is billion and the marginal propensity to save in this Suppose that this year, disposable income is projected to be $650 billion. Based on your analysis, you would expect consumption to be S billion and saving to be S billion,
- Assume in a simple economy that the level of saving is –500 when aggregate output equals zero and that the marginal propensity to save is 0.2. Derive the saving function and the consumption function, and draw a graph showing these functions. At what level of aggregate output does the consumption curve cross the 45° line? Explain your answer and show this on the graph.The following equations describe an economy: C= 10 + 0.5 Y (Consumption function) I = 190-20i (Investment function) Derive the equations for IS curve and represent it graphically for i=2 and i=51) Consider the following economy: Č = 3,1 = 1.5, Ğ = 2.65,T = 2, f = 0.5, d = 0.1, a = 0.8 %3D %3D %3D A) Write the mathematical expression of the consumption function B) Write the mathematical expression of the investment function C) Find the IS curve and graph it.
