FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION TWO a) State the assumptions of ordinal approach to utility. (5 marks) b) Given a utility function U = 30X ~ 422 + 502

image text in transcribed
image text in transcribed
QUESTION TWO a) State the assumptions of ordinal approach to utility. (5 marks) b) Given a utility function U = 30X ~ 422 + 502 - X2 Income level Y = Ksh.54 Price of good X (PX) = Ksh .3 Price of good Z (P 2) = Ksh.6 Determine the equilibrium quantities of commodities X and Z and the level of Utility. (10 marks) c) Graphically demonstrate the concept of consumer surplus

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

blur-text-image

Step: 3

blur-text-image

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

Research Methods Design And Analysis

Research Methods Design And Analysis

Authors: Larry Christensen

13th Edition

0205961258, 978-0205961252

More Books

Students also viewed these Economics questions

Question

★★★★★
Selected financial data is provided as follows: Required: 1. Calculate the return on equity for 2015. How does it compare with the return on equity for 2014? 2. Calculate the return on the market...

Answered: 1 week ago

Question

★★★★★
To find the horizontal range R of a projectile, the equation R = vt cos is used, where is the angle between the line of fire and the horizontal, v is the initial velocity of the projectile, and t...

Answered: 1 week ago

Question

★★★★★
=+Dependent variable is: Delay/person R-squared = 80.7% R-squared (adjusted) = 78.5% s = 6.316 with 68 - 8 = 60 degrees of freedom Source Sum of Squares df Mean Square F-ratio Regression 10013.0 7...

Answered: 1 week ago

Question

★★★★★
Suppose you have decided to start a small business selling snacks from vending machines. You have secured a location for one candy vending machine in a local bookstore. Rental for the space will cost...

Answered: 1 week ago

Question

★★★★★
Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to...

Answered: 1 week ago

Question

★★★★★
Write a program to display the following image. a. Request an integer from the console. b. If the integer is -1 then exit the program, otherwise stay in a loop asking for input c. If the integer is...

Answered: 1 week ago

Question

★★★★★
14. A dam wall is to be built across a valley that may be approximated as a semi-circle for initial estimates, as shown in the diagram below. Derive an equation to determine the total hydrostatic...

Answered: 1 week ago

Question

★★★★★
Calculate the average, moving range, MR-bar, LCL, UCL, and Standard Deviation using the data set below. Please show the excel formulas used for each calculation. CoursHeroTranscribedText Sample Data...

Answered: 1 week ago

Question

★★★★★
How likely are you to get a coverage probability less than the specified coverage probability of 0.9? 0 Count 25 50 75 0.80 0.85 0.90 0.95 Coverage probability

Answered: 1 week ago

Question

★★★★★
Digby is a Niche Cost Leader (Low Technology) Review the Inquirer to determine Digbys current strategy. How will they seek a competitive advantage? From the following list, select the top five...

Answered: 1 week ago

Question

★★★★★
ellaborate on the following; Even while diversity, equality, and inclusion ( DEI ) in the workplace are important, many firms find it difficult to prioritize and carry out worthwhile efforts. The...

Answered: 1 week ago

Question

★★★★★
does The healthcare levy is calculated as 1.5% of the total income in every case

Answered: 1 week ago

Question

★★★★★
3. What values would you say are your core values?

Answered: 1 week ago

Question

★★★★★
12. Think of a situation where you felt particularly powerless. It must be a real event that you remember relatively well. Try to think back. What was it you imagined just before you felt powerless...

Answered: 1 week ago

Question

★★★★★
13. Try to imagine how you would feel if you had tackled the problem, the con-flict, the challenge, etc., that made you powerless in task 12, for example upstairs, confident, confident, calm,...

Answered: 1 week ago

Previous Question Next Question