John only values food until he has consumed 10 units of it, and after that, he values only shelter. 1) Sketch John’s indifference curves between food and shelter.
Q: Discuss how MDGs and SDGs are integrated into the economic planning of Bangladesh.
A: In contrast to the MDGs, which only target agricultural nations, the SDGs apply to all nations,…
Q: ow will the following events affect exports of a country, ceteris paribus? increase decrease no…
A: Export is crucial component of aggregate demand. Rise in the export leads to rise in foreign…
Q: The economy's unemployment rate is 2% and the inflation rate is 18%. The most appropriate policy for…
A: As we know that Phillips curve shows the relationship between inflation and Unemployment rate . And…
Q: In a six-firm market, if all firms charge the monopoly price, the per-period industry profit equals…
A: In economics, a monopoly is described as a market structure in which there is only one vendor for a…
Q: Problem #18: Which statement is correct: a. 'Price of rice land is low because of low rental price'…
A: When talking about the relationship between price and rent, price is the market value of an item or…
Q: Consider the ASAD model of a closed economy with zero ongoing inflation and workers misperceptions.…
A: Shocks occur when the AD or SRAS curves shift. Unexpected changes in the economy will cause the…
Q: The economy is at the Keynesian equilibrium. Assuming that taxes are zero, a decrease in the…
A: The keynesian equilibrium occurs where the aggregate expenditure is equal to the output or where the…
Q: miracle-growth economies often have very high investment. True or false ?
A: Economic miracle is a casual economic term for a time of sensational economic improvement that is…
Q: Let's explore the relationship between Marginal Product and Marginal Cost. Specifically, we have…
A: Answer: The following formulas will be used to calculate marginal product (MP) and marginal cost…
Q: Consider the model of competitive insurance discussed in lectures (Topic 6.7). Peter is a risk…
A: In a competitive insurance market the fair premium price is equal to the expected value of the loss…
Q: Economics (a) Describe the MacDougall-Kemp model of labour mobility including its key assumptions.
A: The MacDougall–Kemp model is helpful for calculating the influence of immigration on income…
Q: 5. Suppose there is a Chinese firm that could produce a "widget" at a cost of 9qw, where qw is the…
A: In the monopoly market, there is a single seller of the good. The good that the monopolist sells has…
Q: A bookstore sells 90 textbooks at a price of $70 a book. The average total cost is $50 per textbook.…
A: Given that : Number of textbooks = 90 Price of a book = $ 70 Average total cost = $ 50
Q: George has just finished the cost analysis of a brass pump with and without an interior coating. The…
A: Here, it is given that George made an analysis of the use of interior coating in. Brass pump as…
Q: Economics John is a consumer of housing and food with a Cobb-Douglas utility function of U(H, F) =…
A: Utility function : U = HaFb Let us assume the income of John be 'M' . Price of housing be 'Ph' Price…
Q: 5) A town just passed a new policy that allows its residents to graze cows freely. What problem…
A: 5) If inhabitants are given free unrestricted access, the marginal private cost will be the cost of…
Q: Explain Keynesian policy for fighting unemployment and inflation.
A: Keynesian economics explains how total expenditure affects production, employment, and inflation.…
Q: Price (S/unit) $100- 90 588888888 80 70 60- 50- 40 30- 20 10- D₁ 0 10 20 30 40 50 60 70 80 90 100…
A: Price floor In a market, the prices of the commodity and services are set by the demand and supply…
Q: For the cash flow diagram shown, solve for F, using an interest rate of 1% per month. F=? 19/
A: Given the values: Interest rate per month = 1% Annual interest rate = 1 + 1%12-1=1 +…
Q: In the balance of payments, capital and financial account inflows might lead to future current…
A: As they both record foreign money movements, the capital and financial accounts are inextricably…
Q: Please explain briefly the concepts of risk aversion, utility, and certainty equivalent. What is the…
A: The concept of risk refers to that situation where an individual is uncertain about the outcome of…
Q: You need to take a trip by a car to another town that you never visited before. Therefore, you are…
A: Network model can be understood as totality of nodes and arcs. It is considered as a flexible model…
Q: Question 2 [Word limit: 500] Consider the following game, called a voluntary contribution mechanism…
A: Voluntary contribution mechanism is a type of game which is used for the contribution towards public…
Q: To what extent do you agree with the statement that a monopoly is always a worse situation for…
A: A monopoly is a market structure where there is a single seller and many buyers.
Q: A businessman invest P 100,000 now and received two payments of P 102,139 at the end of the 3rd year…
A: Given the information: Present value = P100000 Payment at the end of 3rd year = P102139 Payment at…
Q: Some people claim that degrees in liberal arts do not really train students for the job market.…
A: When talking about the degrees in liberal arts, it is given that these degrees do not add the…
Q: Suppose Russia can produce automobiles relatively cheaply, but they have poor gas mileage and create…
A: A tariff is a government-imposed tax on products and services imported from other nations that…
Q: wo garden centres, Grass and Shrubs, sell a similar range of plant pots, plants and plant food. Both…
A: Each firm has two actions which are: Discount, No Discount. Hence we draw the Payoff matrix and then…
Q: Discuss and illustrate expansionary fiscal policy will have on the Australian dollar's exchange rate…
A: A government generally regulates the market through fiscal measures, the measures can be of two…
Q: Write a short essay (max 150 words) analyzing the following. The US has been maintaining a current…
A: Current account The balance of payment is the statement that shows the money flow of the country.…
Q: Calculate business investment for the following data: Y = 55,000 C = 40,000 G= 5,000 NX= - 2000…
A: Aggregate expenditure is the sum of consumption, investment, government spending, and net exports.…
Q: The Australian government wants to create a new income tax that collects 10% for all incomes between…
A: Average tax rate is the share of income that a tax payer pay in taxes. The marginal tax rate is the…
Q: Differentiate an Internal Rate of return with that of an External Rate of Return.
A: The internal rate of return ( or IRR) is a measurement utilized in monetary examination to gauge the…
Q: 1. Expected inflation can be estimated as the return on a TIPS bond the return on a Treasury bond…
A: Expected inflation refers to the future estimation of an increase in general price of goods and…
Q: How HubSpot company managed to increase customers and sale?
A: Knowing the sales volume can help you spot under performing goods and improve your sales process…
Q: 4. John has a utility for the quantity of sandwiches, Xs, and quantity of burgers, X, that he…
A: John consumes two goods sandwiches and burgers. John's utility function is a function of both…
Q: 23) If the marginal propensity to consume (MPC) is 0.8 and if government spending (G) rises by $50…
A: Gross domestic product is the summation of consumption, investment, government expenditure and net…
Q: In California, let’s assume that Armando sells bagels in a monopolisticly competitive market.…
A: Armando operates in a monopolistically competitive industry, which means it is not a monopolist but…
Q: Maria paid Marie $2000 every 6 months for the past ten years. Find the net sum after the last…
A: From the given information, we have Semi-annually payment (A)= $2000 Number of years =10 Interest…
Q: What is the future amount of P 5,000 if the single payment present worth factor is 0.253?
A: Given PV = 5000 and Present worth factor = 0.253
Q: a) Derive the central bank's preferred inflation rate and explain. b) The result in a) reads as εὖ…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: If the marginal propensity to consume is zero, a temporary tax increase leads to a small decrease in…
A: In an economy, if marginal propensity to consume is zero, it is the situation when an increase in…
Q: The following graph shows a hypothetical demand function for federal funds . Currently , the total…
A: Given:Discount rate=3.5 percentInterest on reserves=1 percent
Q: Q6. How does fiscal policy affect the economy?
A: Answer: Fiscal policy: fiscal policy refers to the policy of government in which the government…
Q: 12. The primary case against keeping an independent Fed is? A. Prevent the development of an…
A: Critics say that Congress's delegation of monetary authority to an autonomous quasi-governmental…
Q: This graph shows the seasonal factor taken out of the series after performing the decomposition.…
A: In the given graph, the data is centered at 0 to make it consistent. This is because of the reason…
Q: Calculate the numerical value of the coefficient of the price elasticity of demand in each of the…
A: price elasticity of demand refers to the percentage change in quantity demanded due to percentage…
Q: What do you think should be done in a situation when the price for an essential product (name the…
A: Essential goods or goods of necessities are the type of goods where the elastic demand is highly…
Q: please explain if labour force falling causes a participation rate to decrease?
A: In the labor market, participation rate refers to the total number of individuals whose age ranges…
John only values food until he has consumed 10 units of it, and after that, he values only shelter.
1) Sketch John’s indifference
Step by step
Solved in 3 steps with 1 images
- 8. Normal and inferior goods Larry likes going to the ballpark to watch baseball, and he also is fond of going to the theater to listen to the symphony orchestra. The following diagram shows two of Larry's indifference curves for going to ballgames and symphonies. With Larry's initial budget constraint (BC), he chose to go to two symphonies and six baseball games per month (point X). Then his budget constraint shifted to BC2, and he chose to go to five symphonies and five ballgames per month (point Y). 2 BALLGAMES Z 0 5 10 SYMPHONICS of the following choices, which could have shifted Larry's budget constraint from BC₁ to BC₂? Check all that apply. His income increased while the prices of baseball and symphony tickets stayed the same. The price of symphony tickets increased while his income and the price of baseball tickets stayed the same. The prices of both baseball and symphony tickets decreased while his income stayed the same. His income decreased while the prices of baseball and…The budget set, or budget constraint, in the graph shows the possible combinations of brownies and ice cream cones that can be purchased. Assume that this person has a total of $18 to spend on brownies and ice cream cones. How much does a brownie cost? $ Assume that at point A, the marginal utility from a brownie is 10 and the marginal utility for an ice cream cone is 18. This person is utility maximizing. should consume more brownies and fewer ice cream cones. should consume more ice cream cones and fewer brownies. Brownies 18- 16- 14- 12- 10- 8- 6- 4 2. 0 1 2 3 1 A 1 + 4 5 Budget constraint 6 7 8 9 10 11 12 13 14 Ice cream cones8. Normal and inferior goods Shen likes going to the ballpark to watch baseball, and he also is fond of going to the theater to listen to the symphony orchestra. The following diagram shows two of Shen's Indifference curves for going to ballgames and symphonies. With Shen's initial budget constraint (BC₁), he chose to go to five symphonies and three baseball games per month (point X). Then his budget constraint shifted to BC₂, and he chose to go to four symphonies and six ballgames per month (point Y). BALLGAMES 0 0 5 SYMPHONIES BC 8 goods. BC 10 ? of the following choices, which could have shifted Shen's budget constraint from BC, to BC₂? Check all that apply. The price of baseball tickets Increased while his income and the price of symphony tickets stayed the same. The prices of both baseball and symphony tickets decreased while his income stayed the same. His Income increased while the prices of baseball and symphony tickets stayed the same. His Income decreased while the prices of…
- 8. Normal and inferior goods Antonio likes going to the ballpark to watch baseball, and he also is fond of going to the theater to listen to the symphony orchestra. The following diagram shows two of Antonio's indifference curves for going to ballgames and symphonies. With Antonio's initial budget constraint (BC1), he chose to go to four symphonies and six baseball games per month (point X). Then his budget constraint shifted to BC2, and he chose to go to five symphonies and three ballgames per month (point Y). BALLGAMES 3 8 10 0 4 5 SYMPHONIES BC 8 BC 10 ? Of the following choices, which could have shifted Antonio's budget constraint from BC₁ to BC2? Check all that apply. His income increased while the prices of baseball and symphony tickets stayed the same. The prices of both baseball and symphony tickets increased while his income stayed the same. His income decreased while the prices of baseball and symphony tickets stayed the same. normal The price of symphony tickets increased…Lisa consumes only pizzas and burritos. In equilibrium, her marginal utility of pizza is 20 and her marginal utility of a burrito is 10. The price of a pizza is $4. What is the price of a burrito?Draw YOUR indifference curve for the consumption of two goods (you pick the goods – be creative!) Make sure to include labels. Why did you choose these two goods? Why do you view these as being a tradeoff? Carefully explain why the indifference curve has the shape you created. (Hint: Discuss the slope. What it means and how it changes) Determine a budget that will be allocated towards your consumption of these two goods. Given the budget, prices for the goods, and your preferences, how will you find the utility-maximizing combination? Give an intuitive answer as well as a graphical answer (make sure to label the graph accordingly).
- 24. What is the difference between total utility and marginal utility? Explain.The budget set, or budget constraint, in the graph shows the possible combinations of brownies and ice cream cones that can be purchased. Assume that this person has a total of $18 to spend on brownies and ice cream cones. How much does a brownie cost? $ Assume that at point A, the marginal utility from a brownie is 10 and the marginal utility for an ice cream cone is 18. This person should consume more brownies and fewer ice cream cones. is utility maximizing. should consume more ice cream cones and fewer brownies.3) Suppose Joe's utility for lobster (L) and soda (S) can be represented as U =10.5 50.5 MUL=0.5 L -0.5 s0.5, MUs=0,5 L0.5 s-0.S. Joe walks into a restaurant with $72. Lobsters cost $18 each and sodas cost $2 each. How much lobster and soda will Joe consume if he intends to spend all his money? (There are no tax and no tips.)
- While discussing the choice bundle of a consumer, differentiate between Boundary Optimum and Interior Optimum. Show and explain in which cases a consumer faces these types of optimal equilibria?1. Suppose that there are two breakfast options, pancakes and waffles. Kwame only cares about the calories he gets from his breakfast he wants to consume as much as possible, no matter the food. Suppose that a waffle has thrice as many calories as a pancake. What do Kwame's indifference curves look like, illustrated with waffles on the y axis and pancakes on the x - axis?8. Donald derives utility from only two goods, carrots (Qc) and donuts (Qd). His utilityfunction is as follows:U(Qc,Qd) = (Qc)(Qd)The marginal utility that Donald receives from carrots (MUc) and donuts (MUd) aregiven as follows:MUc = Qd MUd = QcDonald has an income (I) of $120 and the price of carrots (Pc) and donuts (Pd) are both$1.a. What is Donald's budget line?b. What is Donald's income-consumption curve?c. What quantities of Qc and Qd will maximize Donald's utility?d. Holding Donald's income and Pd constant at $120 and $1 respectively, what is Donald'sdemand curve for carrots?e. Suppose that a tax of $1 per unit is levied on donuts. How will this alter Donald's utilitymaximizing market basket of goods?f. Suppose that, instead of the per unit tax in (e), a lump sum tax of the same dollar amountis levied on Donald. What is Donald's utility maximizing market basket?g. The taxes in (e) and (f) both collect exactly the same amount of revenue for thegovernment, which of the two taxes…