All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
survey of economics

Questions and Answers of Survey Of Economics

=+ + What is increasing returns to scale and what advantage does it give?
=+ * Why does a firm’s costs differ in the short run and in the long run?
=+ * What types of costs does a firm face and how does the firm generate its marginal and average cost curves?
=++ Why is production often subject to diminishing returns to inputs?
=+What is the firm’s production function?
=+BL>. Is he worse off, better off, or equally as well off with these new prices and lower income than compared to the original prices and higher income? (Hint: Determine whether Tyrone can afford to
=+horizontal axis. Label the indifference curve J, and the budget line BL,.b. The price of notepads falls to $1; the price of cafeteria meals remains the same. On the same diagram, draw Tyrone’s
=+37. Tyrone is a utility maximizer. His income is $100, which he can spend on cafeteria meals and on notepads. Each meal costs $5, and each notepad costs $2. At these prices Tyrone chooses to buy 16
=+eggs and tuna would have changed between 2013 and 2015.‘WORK IT OUT
=+quantity of tuna on the x-axis.b. Calculate the relative price of eggs in terms of tuna for each year. Use the relative price rule to determine how the average household’s consumption of
=+a. For each of the two years for which you have data, what is the maximum number of packs of eggs that an average Japanese household could have consumed each month? The maximum number of 100-gram
=+ggs (per p| 00-gram | monthlyi Year | ackof10)| portion) | ncome 2013 ¥187 ¥392 | ¥524,810 2015 231 390 | 524,585
=+household’s monthly income. The accompanying table shows some of this data. (¥ denotes the Japanese currency the yen.)Price of t Price ofe | una (per1| Average
=+16. The Japanese Ministry of Internal Affairs and Communications collects data on the prices of goods and services in the Ku-area of Tokyo, as well as data on the average Japanese
=+c. Can you draw an indifference curve showing that cafeteria meals and albums are both inferior goods?
=+b. Now Carmen’s income rises to $100. Draw her new budget line on the same diagram, as well as an indifference curve that illustrates her optimal consumption bundle. Assume that cafeteria meals
=+albums on the vertical axis. You do not have enough information to know the specific tangency point, so choose one arbitrarily.
=+optimal consumption bundle. Place cafeteria meals on the horizontal axis and
=+a. Draw Carmen’s budget line and an indifference curve that illustrates her
=+15. Carmen consumes nothing but cafeteria meals and music albums. Her indifference curves exhibit the four general properties of indifference curves. Cafeteria meals cost $5 each, and albums cost
=+c. Show the income and substitution effects from this price rise.
=+a. Which bundle will Crandall consume?b. The price of crackers rises to 20 cents. How many cheese cubes and how many crackers will Crandall consume?
=+and crackers. One cheese cube costs 20 cents, and 1 cracker costs 10 cents. Draw a diagram, with crackers on the horizontal axis and cheese cubes on the vertical axis, to answer the following
=+d. Show the income and substitution effects from this fall in the price of public transport. 14. For Crandall, cheese cubes and crackers are perfect complements: he wants to consume exactly 1
=+indifference curve that illustrates her optimal consumption bundle after the price of public transport has fallen. Is Katya consuming more or less public transport?
=+b. Now the price of public transport falls. Draw Katya’s new budget line.c. For Katya, public transport is an inferior, but not a Giffen, good. Draw an
=+illustrate her optimal consumption bundle.
=+commutes to work. She can either use public transport or her own car. Her indifference curves obey the four properties of indifference curves for ordinary goods.a. Draw Katya’s budget line with
=+optimal consumption bundle in your diagram. Also draw the indifference curve on which this bundle lies.c. In your diagram, show the income and substitution effects from this fall in the price of
=+Spam and 6 loaves of bread. Illustrate that bundle and draw the indifference curve on which it lies.b. The price of Spam falls to $1; the price of bread remains the same. Pam now buys 7 loaves of
=+goods. Suppose that, for Pam, Spam is an inferior, but not a Giffen, good; bread is a normal good. Bread costs $2 per loaf, and Spam costs $2 per can. Pam has $20 to spend.a. Draw a diagram of
=+horizontal axis and food on the vertical axis. 12. Pam spends her money on bread and Spam, and her indifference curves obey the four properties of indifference curves for ordinary
=+less, or the same amount of gas as before these changes? Illustrate your answer with a diagram, placing gas on the
=+11. Gus spends his income on gas for his car and food. The government raises the tax on gas, thereby raising the price of gas. But the government also lowers the income tax, thereby increasing
=+b. Can you determine definitively whether she consumes more or less french fries? Explain with a diagram, placing nachos on the horizontal axis and french fries on the vertical axis.
=+a. Can you determine definitively whether she consumes more or fewer nachos? Explain with a diagram, placing nachos on the horizontal axis and french fries on the vertical axis.
=+d. What is Sabine’s optimal consumption bundle? Show this on your diagram.e. If the price of Coke and Pepsi is the same, what combination of Coke and Pepsi will Sabine buy? 10. For Norma, both
=+$6 to spend on cola this week. Coke costs $1.50 per bottle and Pepsi costs $1.00. Draw Sabine’ budget line for Coke and Pepsi on the same diagram.
=+optimal? Illustrate an optimal choice in your diagram. 9. Sabine can’t tell the difference between Coke and Pepsi—the two taste exactly the same to her.a. What is Sabine’s marginal rate of
=+tells him that his current consumption bundle cannot be optimal.a. Is Lauren right? Why or why not? Draw a diagram of Ralph’s budget line and the indifference curve that he is on by making his
=+and how much they like eating out at their favorite restaurant and they regularly do some of each. A session at the gym costs the same as a meal at the restaurant. Ralph says that, for his current
=+sell baseball cards to make himself better off? How?c. Suppose Raul has traded baseball cards and after trading still has some of each kind of card. Also, he now no longer wants to make any more
=+to exchange 5 cups of hot chocolate for 1 album. 7. Raul has 4 Cal Ripken and 2 Nolan Ryan baseball cards. The prices of these baseball cards are $24 for Cal and $12 for Nolan. Raul, however, would
=+Kory is considering buying 2 albums and 15 cups of hot chocolate. Kory’s marginal utility of the second album is 25, and her marginal utility of the fifteenth cup of hot chocolate is 5.c. Kory is
=+whether this is Kory’s optimal consumption bundle. If not, what should Kory do to achieve her optimal consumption bundle?a. Kory is considering buying 4 albums and 5 cups of hot chocolate. At
=+a. Has Ina’s budget line become steeper, less steep, or equally as steep?b. Has Ina’s budget line shifted outward, inward, or not at all? 6. Kory has an income of $50, which she can spend on
=+questions based on two assumptions: (1) Inflation increases the prices of all goods by 20%. (2) Ina’s income increases from $50,000 to$55,000.
=+two goods that Neha can buy. She has income of $1,000, and the price of each room is $100. The relative price of 1 room in terms of restaurant meals is 5. How many restaurant meals can she buy if
=+Quantity ofY IQuantity of x Krugman/Wells, Microeconomics, Se, c © 2018 Worth Publishers Quantity ofY IQuantity of x Krugman/Wells, Microeconomics, Se, 4, a Restaurantmeals and housing© 2018
=+principles rules out the curves.Quantity ofYQuantity of x Krugman/Wells, Microeconomics, Se,© 2018 Worth Publishers Quantity ofY I Quantity of x Krugman/Wells, Microeconomics, Se, © 2018 Worth
=+10A-4 rule out certain indifference curves. Determine whether those general properties allow each of the following indifference curves. If not, state which of the general
=+on the horizontal axis and breakfasts on the vertical axis. And remember that breakfasts and dinners are ordinary goods.) 3. The four properties of indifference curves for ordinary goods
=+Bundle A: 10 breakfasts and 4 dinners Bundle B: 4 breakfasts and 10 dinners Now compare bundle A and the following bundle:Bundle C: 7 breakfasts and 7 dinners Can you rank bundle A and bundle C? If
=+movie tickets and 3 cafeteria meals . Can you rank the following two bundles? If so, which property of indifference curves helps you rank them? Bundle A: 12 videos and 4 bags of chips Bundle B: 5
=+a. Can you rank the following two bundles? If so, which property of indifference curves helps you rank them? Bundle A: 2 movie tickets and 3 cafeteria meals Bundle B: 4 movie tickets and 8
=+consuming soda. But she gets no utility from consuming water: any more, or any less, water leaves her total utility level unchanged. Be sure to label the axes of your diagram. Place water on the
=+utility. Be sure to label the axes of your diagram. Place leisure on the horizontal axis and income on the vertical axis.d. Isabella can consume two goods: skis and bindings. For each ski she wants
=+utility only from her caffeine intake. She can consume Valley Dew or cola, and Valley Dew contains twice as much caffeine as cola. Be sure to label and number the axes of your diagram. Place cola
=+1. For each of the following situations, draw a diagram containing three of Isabella’s indifference curves.a. For Isabella, cars and tires are perfect complements, but in a ratio of 1:4; that is,
=+ how those differences in tastes lead to different optimal consumption bundles.
=+3, Indifference curves allow us to illustrate differences in tastes between two people, ?
=+2. They provide a framework for a more in-depth analysis of income and substitution effects—how changes in price and income alter the optimal consumption bundle.
=+1. Indifference curves show how diminishing marginal utility determines the trade- off a consumer makes between consuming more of one good and less of another.
=+substitution effect and the income effect of this increase in the price of bagels, assuming that bagels are a normal good
=+optimal bundle?d. The price of bagels increases to $2, but the price of coffee remains at $2 per cup. Which bundles are now on Brenda’s budget line? For each bundle, calculate Brenda’s level of
=+Brenda’s marginal utility curve of bagels. Does Brenda have diminishing marginal utility of bagels? Explain.c. Brenda has $8 of income to spend on bagels and coffee. Bagels cost $2 each, and
=+Suppose Brenda knows she will consume 2 cups of coffee for sure. However, she can choose to consume different quantities of bagels: she can choose either 0,1, 2, 3, or & bagels.a. Calculate
=+45, Brenda likes to have bagels and coffee for breakfast. The accompanying table shows Brenda’s total utility from various consumption bundles of bagels and coffee.‘Consumption bundle Quantity
=+c. Taking into account the rise in the price of gasoline, in overall prices, and in consumers’ incomes, describe the effect on the quantity of gasoline demanded.‘WORK IT OUT
=+2015, an increase of 89%.
=+However, this is not the end of the story. Between 1990 and 2015, the typical consumer’s nominal income increased, too: the U.S. Census Bureau reports that U.S. median household nominal income
=+by an average consumer rose by 81%.b. Taking into account the rise in the price of gasoline and in overall prices, other things equal, describe the effect on the quantity of gasoline demanded.
=+explanation, make use of the utility-maximizing principle of marginal analysis and describe income and substitution effects. In fact, however, other things were not equal. Over the same time
=+14. According to data from the U.S. Department of Energy, the average retail price of regular gasoline rose from $1.16 in 1990 to $2.52 in 2015, a 117% increase.a. Other things equal, describe the
=+shoes is 300 utils per pair. The price of a dance lesson is $50 per lesson. She currently spends all her income, and she buys her optimal consumption bundle. What is the price of a pair of dance
=+the more money he spends on orange juice. Does that mean that Scott has discovered a Giffen good? 13. Margo’s marginal utility of one dance lesson is 100 utils per lesson. Her marginal utility of
=+her income on housing. Then her income increases by 50%, but the price of restaurant meals increases by 100% (it doubles). The price of housing remains the same. After these changes, if she wanted
=+Pam thinks that Spam is an inferior good. Yet as the price of Spam rises, she decides to buy less of it. 11, Restaurant meals and housing (measured in the number of rooms) are the only two goods
=+move? Why?a. Ed spends a large portion of his income on his children’s education. Because tuition fees rise, one of his children has to withdraw from college.b. Homer spends much of his monthly
=+substitution effect and the income effect from this increase in the price of cereal. In which direction does each effect move, and why? What does this imply for the slope of Sven's demand curve for
=+student who covers most of his dietary needs by eating cheap breakfast cereal, since it contains most of the important vitamins. As the price of cereal increases, he decides to buy even less of
=+she likes watching movies much more than going to the gym. In fact, she says that if she had to give up seeing 1 movie, she would need to go to the gym twice to make up for the loss in utility from
=+increasing from right to left. Use this diagram and the utility-maximizing principle of marginal analysis to decide how Damien should allocate his time. 8. Anna Jenniferson is an actress who
=+calculate the marginal utility per hour spent at the gym and the marginal utility per hour spent watching movies.c. Draw a diagram like Figure 10-4 in which both the marginal utility per hour spent
=+spends all his time either going to the gym or watching movies? Draw Damien’s budget line in a diagram with gym visits on the horizontal axis and movies on the vertical axis.b, Calculate the
=+Damien has 14 hours per week to spend on watching movies and going to the gym. Each movie takes 2 hours and each gym visit takes 2 hours. (Hint: Damien’s free time is analogous to income he can
=+Quantity of Utility from | Quantity of Utility from gymvisitsp gym visits movies per movies (util er week YaurRwne(utils)100 180‘240 280 310 330 340 week YaurRwne s)60 10 150 180 190 195 197
=+the number of times per week he watches a movie or goes to the gym.
=+c. How does Cal’s consumption of Nikes change as the price of Nikes falls? In words, describe the income effect and the substitution effect of this fall in the price of Nikes, assuming that Nikes
=+from all the bundles on his budget line, which bundle will Cal choose? The accompanying table gives his utility of Nikes and sunglasses.Quantity of Utility from | Quantity of Utility from Nikes
=+b. The price of a pair of Nikes falls to $50 each, but the price of sunglasses remains at $50 per pair. Which bundles lie on Cal’s budget line? Draw a diagram like Figure 10-4 in which both the
=+Quantity of Utility from | Quantity of Utility from a 2 Nikes (pair Nikes util | sunglasses sunglasses s) s) (pairs) (utils)0 0 0 0 1 ‘400 2 600 2 700 4 700
=+illustrated. Draw the quantity of Nikes increasing from left to right, and the quantity of sunglasses increasing from right to left. Use this diagram and the optimal consumption rule to decide how
=+6.Cal “Cool” Cooper has $200 to spend on Nikes and sunglasses.a. Each pair of Nikes costs $100 and each pair of sunglasses costs $50. Which bundles lie on Cal’s budget line? Draw a diagram
=+from the second soccer ticket.
=+utility from the third football ticket is twice as much as her marginal utility
=+pencils. The last, pen would add five times as much to her total utility as the last pencil. Lakshani has $50 per season to spend on tickets to football games and tickets to soccer games. Each
=+she would get from the fifth sweater. Lakshani has $5 to spend on pens and pencils. Each pen costs $0.50 and each pencil costs $0.10. She is thinking about buying 6 pens and 20
=+would get from the second pair of sneakers is the same as the additional utility
=+sneakers and 5 sweaters. She tells her friend that the additional utility she

Showing 2900 - 3000 of 5089

First
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved