Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Mar 28, 2020

Darlenes utility function is U(q1, q2, q3) = q 3 1 q 7 2 q3. If her income doubles and prices remain unchanged, her demand

Darlene’s utility function is U(q1, q2, q3) = q 3 1 q 7 2 q3. If her income doubles and prices remain unchanged, her demand for commodity two will more than double.” Is this statement true, false, or ambiguous? Justify your answer

Step by Step Solution

★★★★★

3.35 Rating (155 Votes )

There are 3 Steps involved in it

Step: 1

We have a CobbDouglas utility function not a well behaved one so usin... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics Theory and Applications with Calculus

Authors: Jeffrey M. Perloff

3rd edition

133019934, 978-0133019933

More Books

Students also viewed these Economics questions

Question

★★★★★

If Philip's utility function is U = 2q10.5 + q2, what are his demand functions for the two goods?

Answered: 1 week ago

Question

★★★★★

Philip's quasilinear utility function is U = 4q10.5 + q2. His budget for these goods is Y = 10. Originally, the prices are p1 = p2 = 1. However, the price of the first good rises to p1 = 2. Discuss...

Answered: 1 week ago

Question

★★★★★

Bens quasilinear utility function is U = 4 x 10.5 + x2. His budget for these goods is I = 10. The price of each of the two goods is initially one (i.e., prices are unity). However, the price of x1...

Answered: 1 week ago

Question

★★★★★

Alleghany Community College operates four departments. The square footage used by each department is shown below. Alleghany's annual building rental cost is $320,000 What amount of rent expense that...

Answered: 1 week ago

Question

★★★★★

Draw a heart and label the chambers and valves.

Answered: 1 week ago

Question

★★★★★

Solve for the unknown variable, x.AppendixLO1 a. 12 3x 3 - 4x - = b. 4(x+4)=24

Answered: 1 week ago

Question

★★★★★

=+d) When should the quality team have investigated the production process? Sample Circumference Deviation Sample Circumference Deviation 1 8.998 -0.127 26 9.121 -0.004 2 9.181 0.056 27 9.111 -0.014...

Answered: 1 week ago

Question

★★★★★

1. Describe how the work thats done at Google can result in employees feeling both very stressed and also very positive about their work and the company. In what way do these effects depend on Google...

Answered: 1 week ago

Question

★★★★★

in a populr game of bingo, a pplauer has a card represented by a matrix

Answered: 1 week ago

Question

★★★★★

An analysis of the transactions made by J. L. Kang & Co., a certified public accounting firm, for the month of August is shown below. Each increase and decrease in stockholders' equity is explained....

Answered: 1 week ago

Question

★★★★★

MetaA University finds that student demand at their Registrar's Office tends to be highest during a ten-day window that starts just before a school term begins. Further, demand tends to follow a consi

Answered: 1 week ago

Question

★★★★★

Our company makes and sells cell-phone sanitizer units. Cell phones are inserted inside the units and bathed in UV-C ultraviolet light that eliminates 99.9% of bacteria and viruses in approximately...

Answered: 1 week ago

Question

★★★★★

Suppose that a student suffering from migraine has a medical history that indicates the following probabilities. The probability that you will have a migraine in one day is 25%. If she has a migraine...

Answered: 1 week ago

Question

★★★★★

9. Your neighbor who has a job says, "I am having heart surgery in two months." When does your neighbor have to tell the employer about the surgery?

Answered: 1 week ago

Question

★★★★★

A group from the class in the previous question has identified a bug in their code that will take a minimum of 16 tasks T = {t1...t16} to resolve. How many ways are there to assign the tasks if (5...

Answered: 1 week ago

Question

★★★★★

During a heavy storm, lightning struck an office building that houses the data center of a small accounting firm. The lightning caused a fire that interrupted the electricity supply to the building...

Answered: 1 week ago

Question

★★★★★

Question 13 0.5 Points The biggest market is The bond market in US The bond market in China The equity market in Europe The equity market in China

Answered: 1 week ago

Question

★★★★★

How has the globalization of firms affected the diversity of their employees? Why has increased diversity put an additional burden on accounting systems?

Answered: 1 week ago

Question

★★★★★

After Hurricane Katrina damaged a substantial portion of the nation's oil-refining capacity in 2005, the price of gasoline shot up around the country. In 2006, many state and federal elected...

Answered: 1 week ago

Question

★★★★★

Ann's only income is her annual college scholarship, which she spends exclusively on gallons of ice cream and books. Last year, when ice cream cost $10 and used books cost $20, Ann spent her $250...

Answered: 1 week ago

Question

★★★★★

In 2007, Italy announced that an Italian journalist who had been held hostage for 15 days by the Taliban in Afghanistan had been ransomed for five Taliban prisoners. Governments in many nations...

Answered: 1 week ago

Question

★★★★★

3. What makes the blind spot of the retina blind?

Answered: 1 week ago

Question

★★★★★

8. Figure 6.8 shows 480 nm light as blue and 570 nm light as yellow. Why should we nevertheless not call them blue light and yellow light?

Answered: 1 week ago

Question

★★★★★

1. If someone electrically stimulated the auditory receptors in your ear, how would you perceive it?

Answered: 1 week ago

Previous Question Next Question