Jan's financial situation has deteriorated. His weekly income is 400 kronor, and he spends 200 kronor on food and 200 kronor on all other purchases. A weekly social allowance in the form of food stamps, however, is also paid to him. It costs 5 kr to purchase such coupons, which can be exchanged for 10 kr of food. Show the budget line with and without the food stamps to compare the costs. How much more food will Jan be able to buy with food stamps if he has homothetic preferences?

Find the demand functions for the individuals below, the budget constraint is pxx+pyy=m Bill: U(x 1 ,x 2 ) = x 2 y 3

Buster: U(x, y)=x 2/5 y 3/5

Ben: U(x, y) = (x+1) 2 (y+2) 3

Barbara: U(x 1 ,x 2 ) =3x +2y

Beth: U(x, y)=min{x , y}

Suppose Latvia has a competitive steel market despite being a small, open economy with a small population. According to the market supply curve, the following information is provided: In Latvia, the domestic supply Qs = P/2 and the market demand Qs = P/2 are equal to P is equal to 120 - Qd. Steel sells for $30 per unit on the world market. When answering the following questions, graphs will be very useful!

What is the volume of steel imported?

Calculate the revenue that will be raised if a tariff of $10 is introduced?

Calculate the DWL.