Suppose the Super Bowl is this week, and Raphael is in need of a television to watch the big game. its a college student, Raphael knows that he can either buy his atscreen television at the local electronics store, or he can shop online for a better deal but have to wait three days for the television to arrive. The following problem uses the economic concept of rate of time preference to help detennine which decision is better for Raphael. Throughout the question, assume that Raphael pays for the good the day he buys it, so his wealth is affected in the initial time period no matter where he buys the good. l'ilso, assume the shipping cost and cost to travel to the store are incorporated into their respective given prices. Finally, assume the goods are identical, and there's no cost to gaining information about pricesin other words, he knows the best price online and in the store without having to search. Suppose Raphael receives a utility of 5?.33 utils once he actually receives his television. Let ,3 indicate Raphael's patience level; that is, fl represents the discount rate between consuming something today versus tomorrow. For each value of ,3 in the following table, compute the present value of Raphael's utility from receiving the television when he purchases his television in the store (and receives it today) and when he purchases it online (and receives it three days from how). Present Value When . . . Where Purchased ,3 = 0.9 3 = 0.7 ,8 = 0.3 Store (received today) V v v Dnline {received in three clays) v v v If Raphael buys his television in the store, it costs $500; whereas if he buys it online, it costs only $340. Suppose the utility Raphael receives as a function of his wealth can be expressed in the following way: UfW) = W\". If Raphael's level of wealth is $1,000 before purchasing a television, his utility from wealth will be V utils if he purchases his television in the store, or V utils if he purchases it online. Assume Raphael's total utility from purchasing a television is the sum of the present value of his utility from consumption and the utility from his remaining wealth. For each level of , complete the following table with Raphael's total utility. Total Utility When . . . 0.9 ,3 = 0.7 0.3 1:: || Where Purchased B Suppose the Super Bowl is this week, and Raphael is in need of a television to watch the big game. its a college student, Raphael knows that he can either buy his atscreen television at the local electronics store, or he can shop online for a better deal but have to wait three days for the television to arrive. The following problem uses the economic concept of rate of time preference to help determine which decision is better for Raphael. Throughout the question, assume that Raphael pays for the good the day he buys it, so his wealth is affected in the initial time period no matter where he buys the good. Also, assume the shipping cost and cost to travel to the store are incorporated into their respective given prices. Finally, assume the goods are identical, and there's no cost to gaining information about pricesin other words, he knows the best price online and in the store without having to search. Suppose Raphael receives a utility of 57.33 utils once he actually receives his television. Let ,3 indicate Raphael's patience level; that is, ,6 represents the discount rate between consuming something today versus tomorrow. For each value of ,3 in the following table, compute the present value of Raphael's utility from receiving the television when he purchases his television in the store (and receives it today) and when he purchases it online (and receives it three clays from how). Present Value when . . . Where Purchased ,3 = 0.9 B = 0.7 ,3 = 0.3 Store (received today) v v v Online {received in three days) v v 57.33 utils If Raphael buys his television in the 41.79 utils $500; whereas if he buys it online, it costs only $340. Suppose the utility Raphael receives as a function of his wealth can be expres wing way: UI'W) = W\". If Raphael's level of wealth is $1,000 before purchasing a television, his utility from wealth will be 63.70 utils urchases his television in the store, or V utils if he purchases it online. 51.60 utils Assume Raphael's total utility from purc aslng a elevision is the sum of the present value of his utility from consumption and the utility from his remaining wealth. For each level of ti, complete the following table with Raphael's total utility, Total Utility When . . . Where Purchased ,6 = 0.9 ,3 = 0.7 ,8 0.3 Suppose the Super Bowl is this week, and Raphael is in need of a television to watch the big game. As a college student, Raphael knows that he can either buy his atscreen television at the local electronics store, or he can shop online for a better deal but have to wait three days for the television to arrive. The following problem uses the economic concept of rate of time preference to help determine which decision is better for Raphael. Throughout the question, assume that Raphael pays for the good the day he buys it, so his wealth is affected in the initial time period no matter where he buys the good. Also, assume the shipping cost and cost to travel to the store are incorporated into their respective given prices. Finally, assume the goods are identical, and there's no cost to gaining information about pricesin other words, he knows the best price online and in the store without having to search. Suppose Raphael receives a utility of 57.33 utils once he actually receives his television. Let}? indicate Raphael's patience level; that is, ,3 represents the discount rate between consuming something todav versus tomorrow. For each value of ,8 in the following table, compute the present Ivalue of Raphael's utility from receiving the television when he purchases his mile vision in the store (and receives it today) and when he purchases it online (and receives it three days from how). Present Value When . . . Where Purchased ,3 = 0.9 B = 0.7 ,3 = 0.3 Store [received today) v v v Online {received in three clays) v v v 63.70 utils If Raphael buys his television in the $500} whereas if he buys it online, it costs only $340. Suppose the utility Raphael receives as a function of his wealth can be expres 4139 \"ms wing wav: Uf'W) = W\". If Raphael's level of wealth is $1,000 before purchasing a television, his utilityr from wealth will be urchases his television in the store, or V utils if he purchases it online. 5133 utils Assume Raphael's total utilityr from I 51.60 utils -levision is the sum of the present value of his utility from consumption and the utility from his remaining wealth. For each level of ,6, complete the following table with Raphael's total utility. Total Utility when . . . Where Purchased ,3 = 0.9 ,3 = 0.? B 0.3 Suppose the Super Bowl is this week, and Raphael is in need of a television to watch the big game. As a college student, Raphael knows that he can either buy his at-screen television at the local electronics store, or he can shop online for a better deal but have to wait three days for the television to arrive. The following problem uses the economic concept of rate of time preference to help deten'nine which decision is better for Raphael. Throughout the question, assume that Raphael pays for the good the day he buys it, so his wealth is affected in the initial time period no matter where he buys the good. Also, assume the shipping cost and cost to travel to the store are incorporated into their respective given prices. Finally, assume the goods are identical, and there's no cost to gaining information about pricesin other words, he knows the best price online and in the store without having to search. Suppose Raphael receives a utility of 5?.33 utils once he actuallyr receives his television. LetB indicate Raphael's patience level; that is, ,3 represents the discount rate between consuming something today versus tomorrow. For each value of ,3 in the following table, compute the present I.lalue of Raphael's utility from receiving the television when he purchases his television in the store {and receives it today) and when he purchases it online ( and receives it three clays from now). Present Value When . . . Where Purchased ,8 = 0.9 ,8 = 0.7 ,3 = 0.3 Store [received today) V v v Dnline {received in three days) V v 40.13 utils If Raphael buys his television in the storeI it costs $500; 5133 utils luys it online, it costs only $340. Suppose the utility Raphael receives as a function of his wealth can be expressed in the following w "-7. If Raphael's level of wealth is $1,000 before purchasing a television, his 81.90 utils utility from wealth will be V utils if he purchas. n in the store, or V utils if he purchases it online. 19.66 utils Assume Raphael's total utility from purchasing a television Is e sum of the present value of his utility from consumption and the utility from his remaining wealth. For each level of ,3, complete the following table with Raphael's total utility. Total Utility When . . . 0.9 ,a = 0.7 ,3 0.3 Where Purchased ,6 Suppose the Super Bowl is this week, and Raphael is in need of a television to watch the big game. As a college student, Raphael knows that he can either buy his flat-screen television at the local electronics store, or he can shop online for a better deal but have to wait three days for the television to arrive. The following problem uses the economic concept of rate of time preference to help determine which decision is better for Raphael. Throughout the question, assume that Raphael pays for the good the day he buys it, so his wealth is affected in the initial time period no matter where he buys the good. Also, assume the shipping cost and cost to travel to the store are incorporated into their respective given prices. Finally, assume the goods are identical, and there's no cost to gaining information about prices-in other words, he knows the best price online and in the store without having to search. Suppose Raphael receives a utility of 57.33 utils once he actually receives his television. Let A indicate Raphael's patience level; that is, B represents the discount rate between consuming something today versus tomorrow. For each value of B in the following table, compute the present value of Raphael's utility from receiving the television when he purchases his television in the store (and receives it today) and when he purchases it online (and receives it three days from now). Present Value When . . . Where Purchased B = 0.9 B = 0.7 B = 0.3 Store (received today) Online (received in three days) If Raphael buys his television in the store, it costs $500; v 40.13 utils buys it online, it costs only $340. Suppose the utility Raphael receives as a function of his wealth can be expressed in the following we 81.90 utils W/.. If Raphael's level of wealth is $1,000 before purchasing a television, his utility from wealth will be utils if he purchase n in the store, or utils if he purchases it online. 57.33 utils Assume Raphael's total utility from purchasing a television 19.66 utils the present value of his utility from consumption and the utility from his remaining wealth. For each level of B, complete the following table with Raphael's total utility. Total Utility When . . . Where Pu 0.9 8 = 0.3Suppose the Super Bowl is this week, and Raphael is in need of a television to watch the big game. As a college student, Raphael knows that he can either buy his flat-screen television at the local electronics store, or he can shop online for a better deal but have to wait three days for the television to arrive. The following problem uses the economic concept of rate of time preference to help determine which decision is better for Raphael. Throughout the question, assume that Raphael pays for the good the day he buys it, so his wealth is affected in the initial time period no matter where he buys the good. Also, assume the shipping cost and cost to travel to the store are incorporated into their respective given prices. Finally, assume the goods are identical, and there's no cost to gaining information about prices-in other words, he knows the best price online and in the store without having to search. Suppose Raphael receives a utility of 57.33 utils once he actually receives his television. Let B indicate Raphael's patience level; that is, B represents the discount rate between consuming something today versus tomorrow. For each value of B in the following table, compute the present value of Raphael's utility from receiving the television when he purchases his television in the store (and receives it today) and when he purchases it online (and receives it three days from now). Present Value When . . . Where Purchased B = 0.9 B = 0.7 B = 0.3 Store (received today) IF Online (received in three days) 1.55 utils If Raphael buys his television in the store, it costs $500; whereas if he buys it o 17.20 utils only $340. Suppose the utility Raphael receives as a function of his wealth can be expressed in the following way: U(W) = W0.7. If of wealth is $1,000 before purchasing a television, his 191.10 utils utility from wealth will be utils if he purchases his television in the utils if he purchases it online. 57.33 utils Assume Raphael's total utility from purchasing a television is the sum of the present value of his utility from consumption and the utility from his remaining wealth. For each level of B, complete the following table with Raphael's total utility. Total Utility When . . . Where Purchased B =0.9 B = 0.7 B =0.3Suppose the Super Bowl is this week, and Raphael is in need of a television to watch the big game. As a college student, Raphael knows that he can either bug.r his atscreen television at the local electronics store, or he can shop online for a better deal but have to wait three days for the television to arrive. The following problem uses the economic concept of rate of time preference to help determine which decision is better for Raphael. Throughout the question, assume that Raphael pays for the good the clay.r he buys it, so his wealth is affected in the initial time period no matter where he buys the good. Also, assume the shipping cost and cost to travel to the store are incorporated into their respective given prices. Finallv, assume the goods are identical, and there's no cost to gaining information about pricesin other words, he knows the best price online and in the store without having to search. Suppose Raphael receives a utility of 57.33 utils once he actually receives his television. Let ,3 indicate Raphael's patience level: that is, ,6 represents the discount rate between consuming something tociavr versus tomorrow. For each value of ,8 in the following table, compute the present value of Raphael's utility from receiving the television when he purchases his tele vision in the store (and receives it today) and when he purchases it online (and receives it three days from now). Present Value when . . . Where Purchased ,8 = 0.9 ,3: 0.7 ,8 = 0.3 Store (received today) V V V Online {received in three days) V V v 1?.20 UtliS 191.10 utIIs 5?.33 utils Assume Raphael 's total utility from purchasing a television is the sum of the pr. 1.55 utils remaining wealth. If Raphael buvs his television in the storeI it costs $500; whereas if he buys it - nlvr $340. Suppose the utility Raphael receives as a function of his wealth can be expressed in the following way: UfW) = W\". If of wealth is $1,000 before purchasing a television, his utility from wealth will be V utils if he purchases his television in the V utils if he purchases it online. is utility from consumption and the utility from his For each level ol' ,6, complete the following table with Raphael's total utility. Total Utility When . . . Where Purchased ,3 = 0.9 ,8 = 0.7 0.3 The H Suppose the Super Bowl is this week, and Raphael is in need ofa television to watch the big game. its a college student, Raphael knows that he can either buy his atscreen television at the local electronics store, or he can shop online for a better deal but have to wait three days for the television to arrive. The following problem uses the economic concept of rate of time preference to help determine which decision is better for Raphael. Throughout the question, assume that Raphael pays for the good the day he buys it, so his wealth is affected in the initial time period no matter where he buys the good. Also, assume the shipping cost and cost to travel to the store are incorporated into their respective given prices. Finallv, assume the goods are identical, and there's no cost to gaining information about pricesin other words, he knows the best price online and in the store without having to search. Suppose Raphael receives a utility of 57.33 utils once he actually receives his television. Let ,3 indicate Raphael's patience level; that is, ' represents the discount rate between consuming something toclavr versus tomorrow. For each value of ,3 in the following table, compute the present value of Raphael '5 utility from receiving the television when he purchases his television in the store (and receives it today) and when he purchases it online (and receives it three clays from new). Present Value when . . . Where Purchased ,8 = 0.9 ,3 2 DJ" ,8 = 0.3 Store [received today) V v v Dnline {received in three clays) V v v If Raphael buvs his television in the store, it costs $500; whereas if he buys it online, it costs only $340. Suppose the utility Raphael receives as a function of his wealth can be expressed in the following way: UI'W) = W\". If Raphael's level of wealth is $1,000 before purchasing a television, his utilityr from wealth will be V utils if he purchases his television in the store, or V utils if he purchases it online. Assume Raphael's total ut lurchasing a television is the sum of the present value of his utility from consumption and the utility from his remaining wealth. For each level of ,6, complete the following table with Raphael's total utility. Total Utility when . . . Where Purchased B = 0.9 .3 = 0.7 ,5' 0.3 Suppose the Super Bowl is this week, and Raphael is in need ofa television to watch the big game. As a college student, Raphael knows that he can either bug.r his atscreen television at the local electronics store, or he can shop online for a better deal but have to wait three days for the television to arrive. The following problem uses the economic concept of rate of time preference to help detenTIine which decision is better for Raphael. Throughout the question, assume that Raphael pavs for the good the dav he buvs it, so his wealth is affected in the initial time period no matter where he buys the good. Also, assume the shipping cost and cost to travel to the store are incorporated into their respective given prices. Finally, assume the goods are identical, and there's no cost to gaining information about pricesin other words, he knows the best price online and in the store without having to search. Suppose Raphael receives a utility of 5?.33 utils once he actually receives his television. Let ,3 indicate Raphael's patience level; that is, ,3 represents the discount rate between consuming something toclavr versus tomorrow. For each value of ,3 in the following table, compute the present value of Raphael '5 utility from receiving the television when he purchases his television in the store (and receives it today) am][ when he purchases it online (and receives it three days from now). Present Value when . . . Where Purchased ,3 = 0.9 B = 0.7 ,3 = 0.3 Store [received today) v v v Dnline {received in three davs) v v v If Raphael buvs his television in the store, it costs $500, whereas if he buys it online, it costs onlyr $340. Suppose the utility Raphael receives as a function of his wealth can be expressed in the following way: UfW} 2 Wu]. If Raphael's level of wealth is $1,000 before purchasing a television, his utility from wealth will be V utils if he purchases his television in the store, or v utils if he purchases it online. Assume Raphael's total utility from purchasing a television is the sum of the present valu lit}.r from consumption and the utility from his remaining wealth. For each level of ,3, complete the following table with Raphael's total utillty. Total Utility When . . . Where Purchased fl = 0.9 ,8 = 0.7 ,3 0.3 For each value of B in the following table, compute the present value of Raphael's utility from receiving the television when he purchases his television in the store (and receives it today) and when he purchases it online (and receives it three days from now). Present Value When . . . Where Purchased B = 0.9 B = 0.7 B = 0.3 Store (received today) Online (received in three days) If Raphael buys his television in the store, it costs $500; whereas if he buys it online, it costs only $340. Suppose the utility Raphael receives as a function of his wealth can be expressed in the following way: U(W) = WO.7. If Raphael's level of wealth is $1,000 before purchasing a television, his utility from wealth will be utils if he purchases his television in the store, or utils if he purchases it online. Assume Raphael's total utility from purchasing a television is the sum of the present value of his utility from consumption and the utility from his remaining wealth. 134.83 utils 135.91 utils For each level of B, comp ing table with Raphael's total utility. 100.95 utils Total Utility When . . . 196.31 utils Where Purchased B = 0.7 B =0.3 Store Online From the previous analysis, you can conclude that as A decreases, consumers become * patient. This indicates that as B approaches zero, consumers are more likely to purchase the good_.._ __-___..________..__.. __..__..._..:, __...__.....__, _.-_, __.___ __.___.._... For each value of ,3 in the following table, compute the present Ivalue of Raphael's utility from receiving the television when he purchases his tele vision in the store (and receives it today) and when he purchases lt phiine (and receives it three clays from now). Present Value When . . . Where Purchased ,8 = 0.9 ,3 = 0.7 ,8 = 0.3 Store (received today) V V V Online {received in three days) V V v If Raphael buys his television in the store, it costs $500; whereas if he buys it online, it costs only $340. Suppose the utility Raphael receives as a function of his wealth can be expressed in the following way: UfW) = W\". If Raphael's level of wealth is $1,000 before purchasing a television, his utility from wealth will be V utils if he purchases his television in the store, or V utils if he purchases it online. Assume Raphael rs total utility from purchasing a television is the sum of the present value of his utility from consumption and the utility from his remaining wealth. 100.95 utils For each level of ,8, com 13531 utils pg table with Raphael's total utility. 134,33 utils Total utility when . . . Where Purchased = (1,7 g = 0.3 196.31 utils Store V V Unline V V V From the previous analysis, you can conclude that as ,8 decreases, consumers become V patient. This indicates that as ,3 approaches zero, consumers are more likely to purchase the good V . For each value of B in the following table, compute the present value of Raphael's utility from receiving the television when he purchases his television in the store (and receives it today) and when he purchases it online (and receives it three days from now). Present Value When . . . Where Purchased B = 0.9 B = 0.7 B = 0.3 Store (received today) Online (received in three days) If Raphael buys his television in the store, it costs $500; whereas if he buys it online, it costs only $340. Suppose the utility Raphael receives as a function of his wealth can be expressed in the following way: U(W) = WO.7. If Raphael's level of wealth is $1,000 before purchasing a television, his utility from wealth will be utils if he purchases his television in the store, or utils if he purchases it online. Assume Raphael's total utility from purchasing a television is the sum of the present value of his utility from consumption and the utility from his remaining wealth. 174.18 utils 134.83 utils For each level of B, complete the following table s total utility. 113.78 utils To en . . 78.82 utils Where Purchased B = 0.9 B = 0.3 Store Online From the previous analysis, you can conclude that as A decreases, consumers become * patient. This indicates that as A approaches zero, consumers are more likely to purchase the goodFor each value of B in the following table, compute the present value of Raphael's utility from receiving the television when he purchases his television in the store (and receives it today) and when he purchases it online (and receives it three days from now). Present Value When . . . Where Purchased B = 0.9 B = 0.7 B = 0.3 Store (received today) Online (received in three days) If Raphael buys his television in the store, it costs $500; whereas if he buys it online, it costs only $340. Suppose the utility Raphael receives as a function of his wealth can be expressed in the following way: U(W) = WO.7. If Raphael's level of wealth is $1,000 before purchasing a television, his utility from wealth will be utils if he purchases his television in the store, or utils if he purchases it online. Assume Raphael's total utility from purchasing a television is the sum of the present value of his utility from consumption and the utility from his remaining wealth. 78.82 utils For each level of B, complete the following table 113.78 utils s total utility. To 134.83 utils en . . . Where Purchased B = 0.9 B = 0.3 174.18 utils Store Online From the previous analysis, you can conclude that as A decreases, consumers become * patient. This indicates that as B approaches zero, consumers are more likely to purchase the goodFor each value of B in the following table, compute the present value of Raphael's utility from receiving the television when he purchases his television in the store (and receives it today) and when he purchases it online (and receives it three days from now). Present Value When . . . Where Purchased B = 0.9 B = 0.7 B = 0.3 Store (received today) Online (received in three days) If Raphael buys his television in the store, it costs $500; whereas if he buys it online, it costs only $340. Suppose the utility Raphael receives as a function of his wealth can be expressed in the following way: U(W) = WO. If Raphael's level of wealth is $1,000 before purchasing a television, his utility from wealth will be utils if he purchases his television in the store, or utils if he purchases it online. Assume Raphael's total utility from purchasing a television is the sum of the present value of his utility from consumption and the utility from his remaining wealth. 134.83 utils 60.71 utils For each level of B, complete the following table with Raphael's total 156.07 utils Total Utility When . . . 95.67 utils Where Purchased B = 0.9 B = 0.7 Store Online From the previous analysis, you can conclude that as A decreases, consumers become * patient. This indicates that as B approaches zero, consumers are more likely to purchase the goodFor each value of B in the following table, compute the present value of Raphael's utility from receiving the television when he purchases his television in the store (and receives it today) and when he purchases it online (and receives it three days from now). Present Value When . . . Where Purchased B = 0.9 B = 0.7 B = 0.3 Store (received today) Online (received in three days) If Raphael buys his television in the store, it costs $500; whereas if he buys it online, it costs only $340. Suppose the utility Raphael receives as a function of his wealth can be expressed in the following way: U(W) = WO.7. If Raphael's level of wealth is $1,000 before purchasing a television, his utility from wealth will be utils if he purchases his television in the store, or utils if he purchases it online. Assume Raphael's total utility from purchasing a television is the sum of the present value of his utility from consumption and the utility from his remaining wealth. 95.67 utils For each level of B, complete the following table with Raphael's total t 134.83 utils Total Utility When . . . 156.07 utils Where Purchased B = 0.9 B = 0.7 60.71 utils Store Online From the previous analysis, you can conclude that as A decreases, consumers become * patient. This indicates that as B approaches zero, consumers are more likely to purchase the goodFor each value of B in the following table, compute the present value of Raphael's utility from receiving the television when he purchases his television in the store (and receives it today) and when he purchases it online (and receives it three days from now). Present Value When . . . Where Purchased B = 0.9 B =0.7 B = 0.3 Store (received today) Online (received in three days) If Raphael buys his television in the store, it costs $500; whereas if he buys it online, it costs only $340. Suppose the utility Raphael receives as a function of his wealth can be expressed in the following way: U(W) = WO7. If Raphael's level of wealth is $1,000 before purchasing a television, his utility from wealth will be utils if he purchases his television in the store, or utils if he purchases it online. Assume Raphael's total utility from purchasing a television is the sum of the present value of his utility from consumption and the utility from his remaining wealth. For each level of B, complete the following table with Raphael's total utility. Total Utility When . . . Where Purchased B = 0.9 B = 0.7 B =0.3 Store less Online more From the previous analysis, you can conclude that as A decreases, consumers become patient. This indicates that as B approaches zero, consumers are more likely to purchase the goodFor each value of B in the following table, compute the present value of Raphael's utility from receiving the television when he purchases his television in the store (and receives it today) and when he purchases it online (and receives it three days from now). Present Value When . . . Where Purchased B = 0.9 B = 0.7 B = 0.3 Store (received today) Online (received in three days) If Raphael buys his television in the store, it costs $500; whereas if he buys it online, it costs only $340. Suppose the utility Raphael receives as a function of his wealth can be expressed in the following way: U(W) = WO. If Raphael's level of wealth is $1,000 before purchasing a television, his utility from wealth will be utils if he purchases his television in the store, or utils if he purchases it online. Assume Raphael's total utility from purchasing a television is the sum of the present value of his utility from consumption and the utility from his remaining wealth. For each level of B, complete the following table with Raphael's total utility. Total Utility When . . . Where Purchased B = 0.9 B = 0.7 B = 0.3 Store Online online in the store From the previous analysis, you can conclude the ses, consumers become * patient. This indicates that as 8 approaches zero, consumers are more likely to purchase the good