Suppose that as the price of Y falls from $3.00 to $2.80, the quantity of Y demanded increases from 200 to 210. Then the absolute value of the price elasticity (using the midpoint formula) is approximately Multiple Choice 1.5 141 0.71 0.6
Q: If a firm's revenues do not cover its average variable costs, then that firm has reached its price t...
A: The firm earns positive profit if revenues exceed total cost. Firm incurs loss if revenue is less th...
Q: In 5 years, P 180,000 is needed for a building renovation. In order to generate this amount, a sinki...
A: Answer: (d) P39,195
Q: If a company's annual discount rate is 10% how much money would you need in 4 years to be equivalent...
A: Present Value=FV(1+r)N where, Present Value = $1000 r = discount rate = 10% = 0.10 FV = Future Va...
Q: If the CPIin 2019was 200. and the CPl in 2020was 210, what was the inflation ratebetveen these two y...
A: CPI measures the cost of market basket of goods and services which is produced by a consumers
Q: 15. In the long run, any firm will eventually leave the industry if А. Price does not at least cover...
A: Correct option - A.
Q: Jerome consumes only two goods, eggs and beans. His preferences are complete, monotonic, and convex....
A: To find : Which will be correct choice.
Q: The solid line represent current PPF while the dashed line represents a country's desired PPF. Choos...
A: PPF or the production possibility frontier is the locus of all the combinations of two goods or serv...
Q: I have data on the mean price charged for knee replacements (the variable is called, meancharge) at ...
A: The null hypothesis is a common factual hypothesis that recommends that no measurable relationship a...
Q: he next two questions based on the following information. Suppose a promoter of an outdoor concert f...
A: In the market, the producer should charge price at point where PED is unitary elastic. At this point...
Q: Find the value of X such that the two cash flow transactions are economically equivalent at 12% comp...
A: Solution:- PV = 800 + 800*[[(1+0.12)n-1)]/[0.12* (1+0.12)n]] =800 + 800[ 1.12^4-1]/[0.12*1.12^4] =$...
Q: Read the passage. Then answer the question that follows. The Denim Company is a producer of jeans, w...
A: In monopoly, eqm quantity is found by the intersection of MC(marginal cost) and MR(marginal revenue)...
Q: If most consumers cannot identify any difference in quality among similar products, consumers will b...
A: In perfectly competitive market, there are many sellers. Goods produced are homogenous which implies...
Q: Suppose that the long-run total cost function for a typical producer is given by LRTC = 0.02q where ...
A: I think all the options given are incorrect. When I solve it using the way it needs to be solved. We...
Q: Product Market Households Businesses Factor Market The flow of goods and services to consumers is il...
A: The circular flow of income refers to the model in which the economic agents exchange money and good...
Q: In monopolistically competitive markets which is the most likely type of barrier to entry: A. heavy...
A: Monopolistically competitive markets are the markets having various sellers, selling the product whi...
Q: Suppose that the price elasticity of demand for good q is constant and equal to –1. When the price o...
A: Equilibrium occurs at the intersection point of the demand and supply curve. ----------------------...
Q: d. Determine the level of production and profits at equilibrium. Is the amount of output at equilibr...
A: a. Firm 1 takes firm 2's price to be given and solves, maxp1 (1-p1+bp2)p1-c(1-p1+bp2)F.O.C1-2p1+bp2-...
Q: 12 A researcher reports survey results by stating that the margin of error for the 95% middle interv...
A: The margin of error E for 95% middle interval =44.75 Population variance =18750 We have to find samp...
Q: 3. Suppose the individual has a utility function In(c) where c is consumption and In(-) is the natur...
A: Lottery A: Prize = 1.25 units with probability 0.5 Prize = 0.75 units with probability 0.5 Lottery ...
Q: two (2) differences between the consumer price index and the GDP deflator
A: CPI is Consumer Price Index. GDP Deflator is Gross Domestic Product Deflator.
Q: Use the information contained in the figure below, which contains the NPV profile for Project A (sol...
A: The correct answer is given in the second step.
Q: Q3. Study Appendix Determining Adverse Impact. Textbook typo: Step D Since 53.8% is less than four-f...
A: Answer: Groups Job Applications Number Hired Selection rate% hired White 50 12 24% Black 80 ...
Q: You are paying a series of five constant-dollar (or real-dollar) uniform payments of $2,295.9 beginn...
A: Given that, Uniform payment of $2295.9 The inflation rate is 32.99% The market interest rate is also...
Q: Find the value of B. Quantity Total Cost $5,000 Fixed Cost Average Total Cost Average Fixed Cost Ave...
A: Basics:- Given that:- Total cost = $8000 @ 25 Qty. Fixed cost = $1000 @ 25 Qty. Variable...
Q: Propaganda Techniques: Search for each propaganda technigues; Bandwagon, Testimonials, Transfer, Emo...
A: Propaganda techniques are the basic techniques that helps in influence the common people of the comm...
Q: When you hear language like "serve the general good," it's reasonable to be concerned about personal...
A: Common goods in economics are defined as those goods or resources that are rivalrous and non-excluda...
Q: What happens to the consumer surplus that is lost upon imposition of a price ceiling?
A: Consumer Surplus:- The disparity among the buyers' willingness to pay as per their taste and choices...
Q: The loan was made 3 years and 4 months at 6% simple interest. The principal interest amount of the l...
A: We have been given the following information. Time (t) = 3 years and 4 monthst = 3 + (4/12) yearst =...
Q: Case: As part of the most recent collective bargaining agreement with employees, an employer must of...
A: In the above question, it is given that : Employers must provide medical insurance at "fair, non-pr...
Q: You are the manager of a monopoly that sells a product to two groups of consumers in different parts...
A: Optimal markup pricing rule that is consistent with MR = MC P = MCe1+e where e is the elasticity of ...
Q: 0.997738 Coefficient Intercept Interest Rate -1.61538 14.88462 1. Are there factors other than inter...
A: Regression analysis is a powerful statistical method that allows you to examine the relationship bet...
Q: What are some of the economic reasons causing nations to support their international carriers
A: Economic integration is a treaty between countries that usually involves the elimination or reductio...
Q: The monopolist must decrease price on all units of a product sold in order to sell additional units....
A: In a monopoly, there is only a single seller. The firm sells unique product so it has all the rights...
Q: Suppose that the money stock in an economy is 10,000, the velocity is 9, and the quantity of output ...
A: As per the "quantity theory of money" : money stock×velocity of money=price level×quantity of output...
Q: 1) Suppose that inflation is currently 7% and inflationary expectations are also 7%. Assume that int...
A: Basics:- Actual inflation = Expected inflation + Demand pull inflation + Cost (Supply) pull inflatio...
Q: Which of the following people would be unemployed (or belonging to any labor market group) according...
A: Government has tax revenue which are paid by people and through which they have to carry expenditure...
Q: 4. NSW government provides 200$ of active kids vouchers to an average family in NSW. 50% of such vo...
A: Income Elasticity refers to the percentage change in quantity demanded with the percentage change in...
Q: The MC curve cuts the AVC and ATC curves at
A: To find : Marginal curve where cuts average curve
Q: Consider any market that has a demand curve given by: Qd = 240 - 2P. Where Qd is the total quantity ...
A: Cournot duopoly: each firm is trying to maximize its revenue with respect to quntity. We will use be...
Q: A monopoly company has an average variable cost of $6, average fixed cost of $8, marginal cost of $9...
A: A monopoly is a single seller that has market power to charge price above marginal cost.
Q: The term that must take the prevailing market price for its product. refers to a firm operating in a...
A: Perfectly competitive market: - it is a market condition where there are many buyers and many seller...
Q: If the economy depicted below decides that unemployment is too great and is at point L, the monetary...
A: In the given graph, aggregate supply curve is given with three aggregate demand curves of an economy...
Q: Question 4 The COVID-19 pandemic has created a surge of patients going to hospitals, at times threat...
A: During the COVID 19, with the healthcare implications and with the rising demand of the hospital bed...
Q: 5 a.) Draw a market where consumers demand health insurance and insurance companies supply insurance...
A: Just as the price is determined, in the same way, the premium of the insurance is also determined. H...
Q: This figure depicts three demand curves. Rank the four points according to increasing
A: The elasticity of demand measures quantitative change in the demand in response to the change in the...
Q: What is the most important decision a perfectly competitive firm must make to maximize profit? what ...
A: In a perfectly competitive market, there are many buyers and sellers. The good produced is homogeneo...
Q: Suppose DeGraw Corporation, a U.S. exporter, sold a solar heating station to a Japanese customer at ...
A: The correct answer is given in the second step.
Q: Consider the stage game below. Can we get (A,Y) played each date in an infinitely repeated game? Exp...
A: The handwritten solution is attached below:
Q: Fill in the blanks in the table below. The problem is a "puzzle" so the blanks are not necessarily f...
A: The marginal product is characterized as the additional result that outcomes from adding one unit of...
Q: Suppose countries A and B produce and consume (assuming convex preferences) apples and bananas using...
A: Given:Labor force=100 Unit cost for apples in country A=2 Unit cost for apples in country B =1 unit...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- I am unsure the direction the utility functions would go in , with this specific scenarioEren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Suppose that the Department of Welfare wants to know how much should begiven to Eren to offset his change un utility due to the price increase of an expensivemeal. Calculate the compensative variation (CV).Eren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Calculate for the equivalent variation (EV) for the price change.
- Eren’s two main hobbies are taking vacations overseas (V) and eating expensivemeals (M). His utility function is given as: U(V,M) = V2MLast year, the average price of taking a vacation overseas was US$200 and the averageprice of an expensive meal is $50. However, due to supply problems in Onions, theaverage price of an expensive meal rose to $75. The average price of a vacation did notchange. His income, which is $1500, did not change. Calculate the change in consumer surplus from consuming the expensivemeals considering the price change (Hint: you need to compare his optimalconsumption bundle before and after the price change to get the change in CS).Refer to the graph below Quantity of Y 160 0 Multiple Choice The consumer's income is $1,000 Why doesn't the consumer choose the combination at point B O Quantity of X 200 O The marginal utility of Y exceeds the marginal uplity of X O The consumer is willing to give up more X for an additional unit of Y than must be given up given the relative prices of X and Y. The marginal utility per dollar spent on X exceeds the marginal utility per dollar spent on Y The consumer is willing to give up more Y for an additional unt of X than must be given up given the relative prices of X and Y12) A consumer's preferences are given by U(X,Y)= Xo6y04. The price of X is 4, and the price of Y is 6. The consumer has an income of $2200. a) What is the utility maximizing choice of X and Y? b) How would the utility maximizing choice change if price of X rose to 8? c) Given the answers to the previous parts plot a linear demand function for X.
- If the total utilities for the fifth and sixth units of a good consumed are 98 and 115 respectively. The marginal utility for the sixth unit is:12) A consumer’s preferences are given by U(X,Y) = X0.6Y0.4. The price of X is 4, and the price of Y is 5. The consumer has an income of $2000.a) What is the utility maximizing choice of X and Y?b) How would the utility maximizing choice change if price of X falls to 3 because of a pricesubsidy?c) Given the answers to the previous parts plot a linear demand function for X.d) Show that the consumer would prefer the cash equivalent of the price subsidy in part b.todd is a cattle rancher in june and july he spent his clothing budget on jeans and cowboy hats. each pair of jeans cost $56 and each hat cost $41. At Todd's optimal choice, his marginal utility from the last pair of jeans purchased is 592. This means that his marginal utility from the last cowboy hat purchased is: Round the final answer to the whole number
- The price of X is $20 and the price of Y is $40. Y 30 Uz 24 40 Units of good X based on the graph, at point B, Multiple Choiİce < Prev B. 14 Units of good YDefine Economic utilityMr. Dogan has 4000 TL to spend. He considers buying meat whose price is 400 TL per kg. and cheese whose price is 160 TL /kg. Given this a) What condition (equality) leads him to a utility maximization. State the condition numerically and tell clearly what each of the variables mean in that equation b) Now suppose that income of Mr. Dogan and price of meat does not change but price of cheese is down to 130 TL/kg. Do the equality and optimal basket found in a still maximize the utility? If not; what is the new condition for utility maximization (write the condition as a numerical equation defining the variables in the equation)