please solve the problems below according to the sequence. And explain why. Thank you!
kS Window Help courseworks2.columbia.edu Sessions Quiz: Quiz 1 U8213 Recitation 1 (Ariana) -... 1: Budget Constraint and Pref.. Income 441 91 Home Income 350 91 HomeD Question 6 1 pts In late March 2020, following the Covid-19 crisis, consumers' preferences change because consumers develop a greater liking for hygienic masks. What do you expect happened to Mary's indifference curves in late March 2020? Keep assuming that 1. Mary's indifference curves are smooth curves and 2. masks are placed on the horizontal axis and other goods on the vertical axis. At any consumption basket, Mary's indifference curves become flatter than before. At any consumption basket, Mary's indifference curves become steeper than before. D Question 7 1 pts As a result, holding everything else constant, what do you expect happened to Mary's optimal choice? Mary would optimally consume more masks and fewer units of other goods. Mary would optimally consume more masks and more units of other goods. Mary would optimally consume fewer masks and more units of other goods. Mary would optimally consume fewer masks and fewer units of other goods. Mary will not change her optimal basket.D Question 10 1 pts If masks are normal goods to Mary, the increase in the price of masks makes Mary buy fewer masks. True False D Question 11- 1 pts If the increase in the price of masks makes Mary buy fewer units of other goods, then other goods are inferior goods. True FalseD Question 4 1 pts According to the economic assumptions about consumer choice, could Mary have optimally chosen to purchase one mask and 48 units of other goods per day? No, this basket was not affordable. No, even though this basket was affordable, it was not optimal because it was to the south-west of the budget line. Yes, anything is possible in economics. D Question 5 1 pts Suppose that, under these circumstances, Mary chose to consume 1 mask per day and 49.75 units of other goods. What was Mary's numerical value of her MRSmasks,other at that basket? Assume that Mary's indifference curves are smooth curves. 2 04 O 1/4 1/2 O1 1 pts[This question and those that follow are unrelated to the previous questions] William is a minimum-wage English worker who is paid $50 per day. He does not earn any other sources of income and he can choose how many days to work per week. Hence, William's weekly income is given by the following equation: 1. Income = 50 (Days of Work) Assuming that when he does not work William stays at home, we can write: 2. Days of Work = 7 - Home, where Home measures the number of days spent at home in a week. Eliminate the variable "Days of Work" from equation 1 using equation 2. Then, use the space below to briefly explain why the following graph describes William's budget constraint. Provide a verbal intuition for the two intercepts. Income A 350 Home Further, what is the numerical value of William's opportunity cost of Home with respect to Income?courseworks2.columbia.edu 100% 147 columbia.- Zoom Class Sessions C Quiz: Quiz 1 JB213 Recitation 1 (Ariana) -.. 1: Budget Constraint and Pret.. 2 The Optimal Consumption opportunity cost of Air Under these circumstances, William chooses to work 5 days per week. What is his weekly income? E50 E350 E250 E100 D Question 15 0.5 pts Suppose that William tests positive for Covid-19 and he cannot work from home. If we assume that his preferences remain unchanged, he would continue choosing to work 5 days per week. Because the government wants him to self-isolate at home, William is offered a subsidy of f13 per day for each day that he stays at home. Which of the graphs below shows William's new budget constraint? Income A 441 Homearks Window Help OKBIS OKB/S courseworks2.columbia.edu Zoom Class Sessions Quiz: Quiz 1 U8213 Recitation 1 (Ariana) - Sat 12:... 1: Budget Constraint a D Question 1 1 pts Suppose that in January 2020 Mary had $50 to spend on hygienic masks and other goods every day. Suppose that, at that time, the price of one mask for $.25 (25 cents) and the price of one unit of other goods was $1. Which of the following three graphs represents Mary's budget constraint? Assume that masks and other goods are illustrated, respectively, on the horizontal and vertical axis. 50 200 50 M Wcourseworks2.columbia.edu lumbia Zoom Class Sessions Quiz: Quiz 1 U8213 Recitation 1 (Ariana) - 1: Budget Constraint and Pret.. 2: The Optimal Consumption. Opportun D Question 16 0.5 pts By referring to the income and substitution effects, and assuming that Home is a normal good, can you predict whether William will stay more or fewer days at home than before this subsidy program? He will stay fewer days at home. Yes, he will spend more time at home. Because this subsidy reduces the opportunity cost of Home, the substitution effect suggests that he will spend more days at home. Further, because this subsidy program makes him richer, he will spend more time at home as well because of the income effect. The total effect is therefore unambiguously positive. We cannot predict. Because this subsidy reduces the opportunity cost of Home, the substitution effect suggests that he should spend more days at home. Further, because this subsidy program makes him richer, he will spend less time at home because of the income effect. The total effect is therefore ambiguous. D Question 17 0.5 pts Assuming that William's preferences satisfy the non-satiation assumption, what is the minimum daily subsidy that will assure the government that William will stay home for the entire week? Explain using the space below. HTML Editor B I U A A . TESSIEX XE X x V 1 1 12pt Paragraph
