Question
Analyze following attachments and provide solutions. : ____24.El Nio wind patterns affected the weather across the United States during the winter of 1997-1998. Suppose the
Analyze following attachments and provide solutions.
:
____24.El Nio wind patterns affected the weather across the United States during the winter of 1997-1998. Suppose the demand for home heating oil in Connecticut is given by Q = 20 - 2Phho + 0.5Png - TEMP, where Q is the quantity of home heating oil demanded, Phho is the price of home heating oil per unit, Png is the price of natural gas per unit, and TEMP is the absolute difference between the average winter temperature over the past 10 years and the current average winter temperature. If the current price of home heating oil is $1.20, the current price of natural gas is $2.00, and the average winter temperature this year is 40 degrees compared to 28 degrees over the past 10 years, the quantity of home heating oil demanded is:
____25.El Nio wind patterns affected the weather across the United States during the winter of 1997-1998. Suppose the demand for home heating oil in Connecticut is given by Q = 20 - 2Phho + 0.5Png - TEMP, where Q is the quantity of home heating oil demanded, Phho is the price of home heating oil per unit, Png is the price of natural gas per unit, and TEMP is the absolute difference between the average winter temperature over the past 10 years and the current average winter temperature. If the current price of home heating oil is $1.20, the current price of natural gas is $2.00, and the average winter temperature this year is 40 degrees compared to 28 degrees over the past 10 years, if the sellers of home heating oil are profit maximizers, they should:
____26.Marginal revenue can be defined as the:
____27.Total revenue can be defined as:
____28.If price is $25 when the price elasticity of demand is -0.5, then marginal revenue must be:
____29.Total revenue is rising with increases in output whenever:
____30.The demand for answering machines is Q = 1,000 - 150P + 25I. Assume that per capita disposable income I is $200. When the price of answering machines is P = $10, the income elasticity of demand is:
____31.The demand for fax machines has been estimated to be Q = 1,000 - P + 40L, where P is the price of the machines and L is the average cost of a 10-minute midday call from Los Angeles to New York. At a fax machine price of $400 and a phone call cost of $10, the cross-price elasticity of demand for fax machines with respect to the price of phone service is:
____32.The constant price elasticity of demand for cigarettes has been estimated to be -0.5. To reduce smoking by 50%, approximately how much tax needs to be added to a $1 pack?
____33.Consider the indifference map below. This map represents Larry's preferences over two goods, oranges and grapefruits. Larry:
File
will always choose to consume a combination of oranges and grapefruits.
____34.Don consumes bagels and cream cheese. He likes to place 2 ounces of cream cheese on each bagel, no more, no less. In this case, Don's indifference curves for bagels and cream cheese will be:
____35.At equilibrium, the marginal rate of substitution describes:
____36.The marginal rate of substitution:
____37.A consumer buys 12 units of entertainment, measured on the horizontal axis, and 84 units of "all other things." The consumer's income elasticity of demand is equal to 1 for both goods. If income increases by 10%, then the consumer's marginal rate of substitution at the utility-maximizing market bundle will:
____38.The consumer's optimal consumption of X and Y is characterized by:
.
____39.The marginal rate of substitution of X for Y is defined as:
____40.Suppose Al is currently consuming four movies and four concerts per month. If his utility function is given by U = 15M0.5C, where M represents the number of movies seen and C represents the number of concerts attended, what is Al's total utility equal to?
____41.Suppose Al is currently consuming four movies and four concerts per month. If his utility function is given by U = 15M0.5C, where M represents the number of movies consumed and C represents the number of concerts attended, what is the marginal utility of the next concert Al will attend?
.
alternative levels of utility that a consumer might get from consuming a given market basket.
____43.Consider the following budget constraint. Dennis spends all his money on sweaters and sweatshirts. If the price of sweaters is $15, how much money does Dennis have in his budget?
File
____44.Consider the following budget constraint. Dennis spends all his money on sweaters and sweatshirts. If the price of sweaters is $15, what is the price of sweatshirts?
File
None of the above.
____45.A consumer's budget constraint changes slope whenever:
absolute prices change.
____46.Jamie is considering the purchase of a new car for $20,000. Her income is $60,000, and her alternative is "all other things," which sell for $1 each. If all other things are plotted on the vertical axis and her marginal rate of substitution is File, then she will buy File car(s).
____47.The consumer's optimal consumption of X and Y occurs where the consumer:
____48.Jane spends $210 per month on wine and beer. Her utility function is given by TU = 100WB, where W represents the number of bottles of wine that she buys and B represents the number of cases of beer that she buys. If wine costs $10 per bottle and beer costs $15 per case, she will maximize utility by buying:
.
____49.Fred consumes quantities of butter and margarine; his utility function is given by U = 5M + 2B. If Fred has $10 to spend on butter and margarine, and if butter costs $2 per pound and margarine costs $1 per pound, what is his optimal bundle of butter and margarine?
____50.Betty spends all her income on cheese and crackers. She finds that the marginal utility of cheese is 10 and the marginal utility of crackers is 15. The price of cheese is $5 per unit, and the price of crackers is $3 per unit. At this point, Betty:
____51.In most cases, at the optimal consumption bundle:
____52.Consider the following indifference map. The price of Y is $5. Two points on a demand curve for good X are:
File
none of the above.
____53.Using the indifference map below, two points on a demand curve for good Y are:
The answer cannot be determined from the information given.
____54.Consumer surplus is important to firms because:
____55.The following diagram represents the demand for trips to a local swimming pool during the summer. If the city subsidizes the swimming pool so that swimming is free, the number of people swimming each day will be:..
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