Hello Expert...Out of these 5 questions please solve any 3 questions of your choices...
I need that as soon as possible...Please dear expert solve any 3 out of these 5 questions (With Graphical Representations) ...I will give good rating for sure...If you type that, it will be more preferrable ,but writing answers can also be accepted...But if you provide word document (written ) answer then get ready for multiple good voting :))
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(PLEASE SOLVE ANY 3 QUESTIONS OF YOUR CHOICE WITH PROPER GRAPH AND EXPLANATIONS..)
Thank you so much..
Please Provide ASAP...
1. In the coltsumptiotvleisure model. let the consumer's utility function be u(L, c} = Le. Suppose the price of stuff is p = 1 and that T = 24 hours. Can you show that the daily labor supply curve is i*(w] = 12? {That is. this consumer's preferences are such that. regardless of the wage rate, she wants to work exactly half her day.) 2. Humpty Dummy earns some non-labor income and decides not to work. Draw a graph with leisure on the horizontal axis and consumption on the vertical axis, showing his preferences. budget constraint. and the optimal constunption bundle. Label the intercepts and the optimal bundle. 3. Suppose the interest rate for savers is l and the interest rate for borrowers is i. 12 with i] i2. Show with a graph that the consumer might be Indifferent between borrowing a large amount of money. or saving a large amount of money. 4. Mr. A's preferences for present consumption (cl) and future consumption {on} are given by the utility function \"($1.92). . clujcl'a, while Mr. B's are given by \"(chm - cicz'\". Suppose that the price of current consumption is 1. and that the interest rate and the inflation rate both equal 5 percent. Finally. both Mr. A's income and Mr. E's income is $100 per period. today and tomorrow. (a) Write down the equation of the budget line and show it graphically. labeling the two intercepts with the axes. the slope, and the zero savings point. Comment on each of these values. (b) Solve for Mr. A's and Mr. B's optimal consumption bundles. Can you say whether they are lenders or borrowers? (c) For those values of income. price. and the ination rate. nd Mr. A's and Mr. B's savings supply curves. Next. suppose they are the only consumers in the economy. Find the aggregate suppiy of savings of this aeonomy. Represent the three curves graphically. (d) Assume that the interest rate goes up to 10 percent. Find the new consumption bundles of the two consumers. Are may better or worse off than in the initial situation? DisCuss. 5. Sketch a consumer's savings supply curve. with i on the vertical axis and 5* on the horizontal axis. Be sure to show 5 positive for one range of i and negative for another. and show the critical t' where the consumer crosses over from being a borrower to being a saver