Business

EconomicsQ&A LibraryConsider an individual whose preferences are represented by the utility function U(x1,x2) = min {3x1+x2 , x1+3x2}. For this individual, Plot the indifference curve giving a utility level of 6. Calculate her MRS at consumption bundle (x1,x2), does MRS depend on the value of (x1,x2)? Calculate her optimal consumption bundle when she has an income of 24, and P1=1, P2=2. Calculate her optimal consumption bundle when she has an income of 24, and P1=1, P2=4.Start your trial now! First week only $4.99!*arrow_forward*

Question

Consider an individual whose preferences are represented by the utility function U(x_{1},x_{2}) = min {3x_{1}+x_{2} , x_{1}+3x_{2}}. For this individual,

- Plot the indifference curve giving a utility level of 6.
- Calculate her MRS at consumption bundle (x
_{1},x_{2}), does MRS depend on the value of (x_{1},x_{2})? - Calculate her optimal consumption bundle when she has an income of 24, and P
_{1}=1, P_{2}=2. - Calculate her optimal consumption bundle when she has an income of 24, and P
_{1}=1, P_{2}=4. - Calculate the income and substitution effects resulting from the change in price of Good 2 (on the level of Good 2 consumption!)
- Calculate her demand function X
_{1}^{*}(P_{1}, P_{2},m) - Calculate her own price, cross price, and income elasticities at X
_{1}^{*}(1, 2, 24) and at X_{1}^{*}(1, 4, 24). Based on these, can you say the goods 1 and 2 are (gross, or Marshallian) complements or substitutes?

Tagged in

Business

Economics

Find answers to questions asked by students like you.

Q: There is no integer that has a reciprocal that is an integer.

A: As per the instructions, we will be answering only the first question. For (32), Notice that the re...

Q: Suppose the population of a town is 8,600 and is growing 3% each year. Predict the population after ...

A: Population in 1 year = 8600 + 8600*3/100 =8858 Population i...

Q: Let X denote the courtship time for a randomly selected female-malepair of mating scorpion flies (ti...

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...

Q: In this assignment you will develop a client-server application. The client will send the server an ...

A: The client will send the server an integer number to see whether the number is a prime number or not...

Q: Suzanne's cell phone bill is $79 per month, and she spends $228 per year on student health insu...

A: Suzanne's cellphone bill is $79 per month She spends $228 per year on students health insurance. we ...

Q: Find the number of grams of NaF in 3.72 x 10^22 formula

A: The question is based on mole concept. have to calculate mass of sodium fluoride present.

Q: The angle of elevation to the top of a Building in New York is found to be 8 degrees from the ground...

A: The objective is to find the height of the building.

Q: If a 1.0 L flask is filled with 0.22 mol of N2 and 0.22 mol of O2 at 2000°C, what is [NO] after the ...

A: The equilibrium constant of the chemical reaction is the value of its reaction quotient at the equil...

Q: An object is launched directly in the air at a speed of 144 feet per second from a platform located ...

A: Given problem is : An object is launched directly in the air at a speed of 144 feet per second from ...

Q: In (Figure 1), the battery has negligible internal resistance and EMF = 44.0 V. R1 = R2 = 3.40 Ω and...

A: Given Data: The EMF is V=44 Volt The resistances are R1 = R2 = 3.40 Ω and R4 = 3.70 Ω

Q: 9) Dick and Jane stand on a platform of negligible weight, as shown in the figure. Dick weighs 500 N...

A: Click to see the answer

Q: Assume that you want to test the claim that the paired sample data come from a population for which ...

A: The random variable X follows normal distribution. There are two dependent samples which are x and y...

Q: Assume that I= 14 A. (Figure 1) You may want to review (Pages 803 - 806). Part A What is the magneti...

A: Click to see the answer

Q: Angie needed a new refrigerator after her old one stopped working and couldn’t be repaired. At the a...

A: OPTION C

Q: Jimmy purchased a package of jelly beans that contained 75 jellybeans. Out of the 75 jellybeans, 8 a...

A: Ans:

Q: A submarine dives from the water surface at an angle of 30° below the horizontal, following a straig...

A: To find how far is the submarine then below the water surface

Q: 4. Which statement most accurately describes federalism? (a) The judicial branch of government has m...

A: Federalism is a system of government in the political system of a country.

Q: Fitting a straight line to a set of data yields the following prediction line. Complete (a) through ...

A: Click to see the answer

Q: 5.15 LAB: Reverse array Use Python. Complete reverse() method that returns a new character array co...

A: Given: 5.15 LAB: Reverse array Use Python. Complete reverse() method that returns a new charact...

Q: Profit Margin [LO4] In response to complaints about high prices, a grocery chain runs the following ...

A: profit margin is a profitability ratio of the company, it is calculated with the information given i...

Q: You have gas trapped in a syringe whose open end is stopped. You very slowly press down on the plung...

A: We are given an isothermal process. We have select the graphs that follow

Q: A livestock company reports that the mean weight of a group of young steers is 1153 pounds with a st...

A: Normal distribution is generally denser in the center, and basically less denser at the tails. There...

Q: Calistoga Produce estimates bad debt expense at 0.50% of credit sales. The company reported accounts...

A: Estimated uncollectible accounts = 0.50% of credit sales = $326,000 x 0.50% = $1,630

Q: A radio advertiser wishes to choose a sample of size 100 from a population of 5000 listeners. He div...

A: In stratified random sampling we divide the population into equal parts then we select proportional ...

Q: The radius of the circle on a basketball court is 6 feet. What are the approximate circumference and...

A: Given, Radius of circle = r= 6 feet We have to find the approximate circumference and area of circle...

Q: The following data were obtained from a company that manufactures special plastic containers that ar...

A: Given information: The data represents the observed counts of each of the three 8-hour shifts versus...

Q: In the Sam’s Bookstore problem, the quantity dis-count structure is such that all the units ordered ...

A: Output :-

Q: C₅H₁₂ is soluble in C₇H₁₆. In H₂O, this solute would be: a) more soluble b) less soluble c) equal...

A: The solute given is C5H12.

Q: Find the length of each side of polygon RST. 7y - 4 T. 2y + 11 S

A: A triangle is a polygon having three sides and three vertices. Sum of interior angles of triangle is...

Q: Moore ran a bakery in Santa Rosa, New Mexico. His business was wholly intrastate. Meads Fine Bread C...

A: A business that is conducted within a state is known as the interstate business and a business that ...

Q: Davis Kitchen Supply produces stoves for commercial kitchens. The costs to manufacture and market th...

A: The process of allocating expenses to cost items, which frequently include a company's products, ser...

Q: In the 1630s, Thomas Hooker and Roger Williams disagreed with the religious leaders of Massachusetts...

A: The answer is D) Left Massachusetts and established new colonies.EXPLANATION: Thomas Hooker was one ...

Q: The Barberton Municipal division of Road Maintenance is charged with road repair in the city of Barb...

A: TOTAL COST OF THE PLAN: 1. GIVEN: Normal Working hours = 500 hrs Overtime limit = 20% Maximum worki...

Q: On January 1, 2018, Global Sales issued $25,000 in bonds for $29,800. These are eight-year bonds wit...

A: Bonds are issued by a firm in order to raise fund. Bonds are purchased by investors and they get a f...

Q: PQ has endpoints at P(-5, 4) and Q(7, -5). 6. What are the coordinates of the point of the way from ...

A: Click to see the answer

Q: Ian loaned his friend $25,000 to start a new business. He considers this loan to be an investment, a...

A: Calculation of annual payment and capital recovery schedule: Answer: The annual payment is $7,716.72

Q: You are stationary and you observe a frisbee being thrown out of a car. The car is going 50 m/s to t...

A: Given Speed of car = 50 m/s towards right Speed of frisbee with respect to car = 15 m/s towards left...

Q: A 30-kg child rides on a circus Ferris wheel that takes her around a vertical circular path with a r...

A: Click to see the answer

Q: To study the effectiveness of a standardized test prep class for improving test scores, a random sam...

A: In question, Given that, A random sample of 36 students are choosen and their average improvement wa...

Q: Utilizing an intersectional lens detail how this quote by Fred Hampton is vital to social movements:...

A: Fredrick Allen Hampton was a well-known African American civil rights activist who co-founded the Bl...

Q: You are given 0.10 g samples of Na, Y, Ge, and Mn. List the samples in order of the amount (moles) f...

A: Number of moles = given mass/molar mass

Q: Peptide bonds are formed via what type of reaction? A. Condensation B. Hydrolysis C. Oxi...

A: When the carboxyl group of one molecule combines with the amino group of the other molecule, releasi...

Q: While researching the use of laser pointers, you conduct a diffraction experiment with two thin para...

A: Click to see the answer

Q: Two airplanes are flying in the air at the same height: airplane A is flying east at 250 mi/h and ai...

A: In the question we have to find rate of change of distance. NOTE - As per Bartleby's policy we can n...

Q: The accounting manager of a manufacturer of farming equipment was asked by the CFO to analyze the co...

A: The question is multiple choice question. Required Choose the Correct Option.

Q: The roller-coaster track shown is contained in a vertical plane. The portion of track between A and ...

A: Given data. A car is traveling at a speed = 72 km/h To Determine the initial deceleration of the car...

Q: The Times-Herald is planning a special-edition magazine. The publishing expenses include fixed costs...

A: Let 'n' magazines being printed then cost for 'n' magazines is 1100+0.2n revenue collected from the...

Q: Research mobile procurement and discuss the roles in the buying centre that are impacted most by thi...

A: Mobile procurement states to any corporate software that permits users to regulate their procuremen...

Q: When 3.0 L of propane C3H8 gas is completely combusted to form water vapor and carbon dioxide at STP...

A: Answer is explained below.

Q: A hollow spherical iron ball has a diameter of 15.3 cm and has a mass of 13.5 kilograms. Assuming th...

A: Given: Diameter of the outer sphere = 15.3 cm Mass of sphere = 13.5 Kg = 13500 g ...