Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose the consumers total income is 100 TL. Please find the observations on the expenditures and prices of the goods (yearly average). Various Goods and

Suppose the consumers total income is 100 TL. Please find the observations on the expenditures and prices of the goods (yearly average). Various Goods and Service, you will use a space with Various Goods and Service on the horizontal axis, and the sum of all other goods on the vertical axis (Please use an average of the prices of all other goods).

a.For the assigned three years (2005-2007), please draw the revealed preferences diagram of the consumers for the various good and service in your TR41 regions by using three years observation you assigned. Can you tell anything about the welfare of the consumers? Are they better off or worse off in these years?

b.Please find the ratio of marginal utilities assuming that optimal choices made.

c.Please calculate the price elasticity of demand for two years.

d.Please find the demand equation for two years and draw them.

Expenditures

https://docs.google.com/spreadsheets/d/1woP9YwAN6Mm_avLixtpIP2yzk7mEcs1VLi72fOb0O0E/edit?usp=sharing

-Distribution of Household Consumption Expenditure by Types of Expenditure,

Prices

https://docs.google.com/spreadsheets/d/1UGw9sdx_vBdjE3Ahix5yGltfucCPUtSlvhnLY_8Mtc8/edit?usp=sharing

-2003 Based Consumer Price Indexes (CPI) by Expenditure Groups (Do not forget the obtain average of monthly prices for each year)

Thanks for the help in advance

TL means Turkish liras

I know the datas are too much but I need help to solve these questions please at least show me the way to solve these with formulas or graphs

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

International Economics Theory and Policy

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

9th Edition

978-0132146654, 0132146657, 9780273754091, 978-0273754206

More Books

Students also viewed these Economics questions