Suppose we have two people in the market: A, B. Their utility functions are UA min{x1, x₂}, UB = min{x₁, 22²2}. Solve their optimal choices and then find market demand. =

Q: What is being described here? "The excess of utility from the consumption of one more unit of a…

A: The satisfaction or usefulness that an individual derives from consuming or using that good is…

Q: A monopoly firm maximizes its profit by producing Q = 500 units of output. At that level of output,…

A: A monopoly is the single firm in the market producing unique good with no other firms in the market.

Q: A US based exporter sells US made goods in UK. The revenue last year was £1,000. The cost of goods…

A: Exchange rate is the rate at which the currency of one country is traded for the currency of other…

Q: 1. Solve the difference equations and analyze the time paths Yt+22yt+1 + 2yt = 1, Yo = 3, Y₁ = 4 C

A: The total solution of a difference equation comprises of a particular solution and a complementary…

Q: Presently, Able High Lift and Baker Overhead are the only suppliers of services that can lift heavy…

A: Cournot Duopoly Equilibrium and Stackelberg Duopoly Equilibrium are two models used in economics to…

Q: Suppose that the tempeh industry is initially operating in long-run equilibrium at a price level of…

A: In any market, equilibrium occurs at such a price where the quantity of the good or service demanded…

Q: What can cause the demand for money curve to shift to the left?

A: A money demand curve depicts the inverse relationship between interest rate and the quantity of…

Q: QUESTION 28 What is explained by accelerator theory? O a. The way in which a small injection leads…

A: Accelerator theory - Accelerator theory states that expenditure on investment increases as the…

Q: Consider the classical AS-AD model with misperceptions. Assume that the economy is initially at its…

A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…

Q: Suppose the demand for a product is given by P = 30 - 3Q. Also, the supply is given by P = 10 + Q.…

A: Deadweight loss is the reduction in total surplus resulting when socially efficient quantity is not…

Q: 5. Compare and contrast how the UK macroeconomy and its policymakers responded to sharp increases in…

A: A policymaker refers to the individual or a group of person who makes the various policy for the…

Q: Calculate the opportunity cost of one more aircraft after trading

A: The graphical depiction of the possible combinations of two goods (here, aircraft and railcars) that…

Q: 2) Explain why E≡Y and M.V≡P.Q are equivalent to each other but can be used to give different…

A: Macroeconomic policies are actions taken by governments in an economy with the objective to promote…

Q: enter a long position in a 10-year forward contract on a non-dividend-paying stock. The stock price…

A: A customised agreement between two parties to purchase or sell an item at a predetermined price at a…

Q: The table below shows cost data for producing different amounts of oil. The market for oil produces…

A: If the market is free then the price at which the demand curve intersects the private supply curve…

Q: 4. Find the National Income if the consumption and Investment are given in the following forms…

A: Given, the consumption and investment in the form of difference equation. The national income has to…

Q: OOO P O 0 A E B a. Оа b. Oc C. Ob d. Od F a b G C H D 1 с J d S' FIGURE 2. D S Q P 0 Large Exporter…

A: Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…

Q: Describe the differences between recessionary and inflanationary gaps.

A: There are two types of gaps in the economy: 1. Inflationary gap 2. Recessionary/Deflationary gap…

Q: The table below shows current carbon emissions and the cost of reducing carbon emissions for three…

A: The total cap on emissions programs are implemented by government to decrease the pollution by…

Q: QUESTION 23 The impact of Singaporean nationals purchasing UK government bonds is to O a. increase…

A: A government bond is a kind of debt security gave by a government to finance its operations and…

Q: Using an example, explain how John Maynard Keynes distinguished macroeconomics from microeconomics

A: The two primary subfields of economics are microeconomics and macroeconomics. Microeconomics is the…

Q: 23. Suppose that demand in a market increases due to larger number of buyers and a technological…

A: An individual’s willingness to pay for each unit of the quantity he or she wishes to consume is…

Q: The marginal benefit of being able to emit a ton of sulphur dioxide emissions for two firms are…

A: Abatement cost refers to the costs brought about in diminishing or staying away from the emission of…

Q: 2. The demand curve facing a competitive firm The following graph illustrates the market for small…

A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…

Q: Calculate equilibrium income for the AE function AE = 400+ 0.6Y. Show your calculations.

A: Aggregate expenditure is the sum of consumption, investment, government spending and net export.  At…

Q: 8. 'The LM curve shows points of equilibrium, but the TR curve shows policy responses.' Explain in…

A: The LM (Liquidity-Money) curve and the TR (Tax and Revenue) curve are two graphical portrayals…

Q: Natural resources do not have to be tested for impairment annually. Select one: True False…

A: Impairment is a phrase used in economics to describe the annual decline in the value of a long-term…

Q: Assume the market for tortillas is perfectly competitive. The market supply and demand curves for…

A: Production decisions involve selecting and distributing materials with the goal to optimize…

Q: Question 16 Suppose a firm sells its product in two markets, Market 1 and Market 2, under which it…

A: Price elasticity determines the % change in the supplied quantity with respect to a unitary change…

Q: Consider a world composed of two countries, Home (H) and Foreign (F). Individuals living in each…

A: Production possibility frontier to maximum level of production which an economy can achieve when it…

Q: "Discuss the Public Finance Impact of COVID-19 Pandemic on the US Economy"

A: Government Spending: The money that the government spends on goods services, and programs to support…

Q: 2. Farmer Jane sells cherry tomatoes. Please graph her demand, MR, MC, ATC, AVC, and supply curves…

A: Perfect competition: A firm in the competitive market is a price taker because it has large number…

Q: All firms in a perfectly competitive industry have a cost function given by: 10Q^2+200Q+2250. What…

A: Under PC, many sellers producing homogeneous products altogether face the entire market demand.…

Q: Cyber Novelties Cyber Novelties is a direct sells company that sells small gadgets over the…

A: Given in the proposal that, $75,000 annually and $0.05 per unit for extra promotion, will lead to…

Q: You have been texting with your friends trying to make plans for this evening. Your best friend…

A: A dominant strategy is a decision-making strategy in game theory that is always the best choice,…

Q: What are Price Supports? Group of answer choices A: The government agrees to purchase any surplus in…

A: Government intervention in the market to maintain the price of a particular commodity or product at…

Q: Does the gap exists? What type of gap?

A: Aggregate demand is the sum of consumption, investment, government spending and net export.  So,  AD…

Q: You are in the market to buy a used car. Your monthly budget allows for a $300 per month car payment…

A: Monthly Budget: $300 Loan duration: 4 years = 48 months APR: 3%

Q: a) aggregate model graph- show equilibrium at recession, full employment and inflationary economy.

A: Since you have posted multiple questions, we will provide the solution to only the first question as…

Q: 3. As you can see, the price elasticity is different depending on the values of prices at which it…

A: Given information: Q = 15 - 3P ---------> Demand function; Price elasticity of demand (Point…

Q: A negative output gap denotes that O a. growth of potential output is negative. O b. potential…

A: Actual output in the economy is determined at the intersection of the aggregate demand and aggregate…

Q: In an oligopoly, each firm’s share of the total market is typically determined by which of the…

A: Oligopoly is a market system in which a few major companies dominate the marketplace, along with…

Q: Economics 4. Depict on graph and briefly explain economic consequences of export subsidy: • for…

A: An export subsidy is a form of government financial assistance given to domestic producers to…

Q: Calumet Electronics purchased a device for $75,000 four years ago (existing device). The company is…

A: To calculate the equivalent uniform annual cost (EUAC) of the new device, we need to consider the…

Q: effect of fiscal and monetary policy on consumer spending in Zimbabwe

A: The set of actions undertaken in which the government makes use of spending and taxation to…

Q: Aggregate income in an economy in 2017 is ​$ 995 billion. Saving is ​$ 25 billion and imports…

A: The Keynesian Cross is an economic framework that portrays the link that exists between an economy's…

Q: What is the cost in real dollars today of spending $25,000 four years from now if your effective…

A: The real cost is a cost as measured by the physical labor and materials consumed in production.

Q: If Gross Revenue for 2018 is $62,400 and growth is 3.6% what is Gross Revenue for 2019?

A: Gross Revenue refers to the total amount of revenue earned by a business or organization before any…

Q: 20- 10- 0+ 0 MR 20 40 60 80 100 120 140 160 180 200 Quantity (millions of cubic feet per month) MC…

A: Monopoly market has a single seller and has several barriers for new firms to enter in the market. A…

Q: Consider a world composed of two countries, Home (H) and Foreign (F). Individuals living in each…

A: The value of alternative opportunities foregone and sacrificed to acquire one unit of a commodity is…