Need as much details as possible. Microeconomics. Peter can work 24 hours a day if he wants

Fantastic news! We've Found the answer you've been seeking!

Question:

Need as much details as possible. Microeconomics.

Peter can work 24 hours a day if he wants to and gets wage w per hour worked. His utility from leisure (work-free time) and consumption is U(C,L)=CL. If the wage of Peter goes up, which of the following statements is always correct?

a. The substitution effect on consumption means that consumption goes up.

b. The total effect on leisure means that leisure goes down.

c. The income effect on leisure means that leisure goes down.

d. The total effect on consumption is zero.

Related Book For answer-question

Intermediate Microeconomics

ISBN: 978-0393123968

9th edition

Authors: Hal R. Varian

Posted Date: Feb 06, 2024 12:47 AM

See More Questions

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
The Assembly Department of Interface, Inc., manufacturer of computers, had 4500 units of beginning inventory in September, and 8000 units wore transferred to it from the Production Department. The...
The Pareto sdsistribution, with parameters Î± and Î², has pdf (a) Verify that f(x) is a pdf. (b) Derive the mean and variance of this distribution. (c) Prove that the variance...
Copper balls ( = 8933 kg/m 3 , k = 401 W/m K, c p = 385 J/kgC, = 1.166 10 -4 m 2 /s) initially at 200C are allowed to cool in air at 30C for a period of 2 minutes. If the balls have a diameter of...
Review Amazon.coms audit report in Exhibit 1.7 and discuss what the report tells you about Amazons financial statements. Is there anything in the audit report that causes you concern? Why or why not?...
All-A-Buzz makes three products from a joint production process using honey. Joint cost for the process in 2010 is $123,200. Each container of honey butter, jam, and syrup, respectively, contains 16...
You have decided to endow Faculty of Business, Dokuz Eylul University with a scholarship. It is expected to cost $10,000 per year to attend the university into perpetuity. You expect to give the...
Comprehensive Problem 1 - Part 1: Taxpayer information, Form 1040, Schedules 1, 2, 3 and 4, Schedule A, and Schedule B. Noah and Joan Arc's Tax Return Note: This problem is divided into three parts....
1.The Audit Committee has an important oversight role in the corporate governance process. i. Explain the role of the Audit Committee in the corporate governance process. ii. Critically discuss...
Identify whether the following statements are true or false. a. The current ratio is a measure of a firm's solvency, b. Free cash flow is a measure of a firm's liquidity. c. The return on sales ratio...
Why do intermediate reboilers make start-up more difficult?
Why should a Certified Public Accountant (CPA) know the principles and methods of cost accounting?
What are the characteristics of a good packing? Why are marbles a poor packing material?
What is meant by an intelligent consumer of accounting information?
Under normal conditions, Stable Insurance Company has $100 million in earned premiums and $60 million in losses and loss adjustment expenses. Assume that during one year, premiums and losses each go...
Which property determines whether a control is available to the user during run time? a. Available b. Enabled c. Unavailable d. Disabled
Suppose that Central High School has preferences that can be represented by the utility function U(C,X) = CX2. Let us try to determine how the various plans described in the last problem will affect...
There are two types of electric pencil-sharpener producers. High-quality manufacturers produce very good sharpeners that consumers value at $14. Low-quality manufacturers produce less good ones that...
Suppose that the Greater Potato metropolitan government rejects the idea of imposing traffic tolls and decides instead to rebuild the Middle Potato highway so as to double its capacity. With the...
Use chloroform to extract acetone from water. Equilibrium data are given in Table 13-6. Find number of equilibrium stages required for a countercurrent cascade if feed is \(1000.0 \mathrm{~kg} /...
We are extracting pyridine from $500 \mathrm{~kg} / \mathrm{h}$ of a feed that is $15.0 \mathrm{wt} \%$ pyridine and $85.0 \mathrm{wt} \%$ water using $225 \mathrm{~kg} / \mathrm{h}$ of pure...
Equilibrium for extraction of acetic acid from 3-heptanol into water at $25^{\circ} \mathrm{C}$ is $\mathrm{y}=1.208 \mathrm{x}$, where $\mathrm{y}=$ weight fraction acetic acid in water and...

Need as much details as possible. Microeconomics. Peter can work 24 hours a day if he wants

Question:

Expert Answer:

The detailed answer for the above question is provided below When Peters wage increases it affects both his consumption and leisure choices To analyze ... View the full answer

Intermediate Microeconomics

Students also viewed these economics questions