Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

problem: Please define or describe the following terms. A complete answer will include a graph, equation, and/or ex as part of each definition.

1) Consumer surplus
2) Giffen good
3) Income elasticity of demand

problem: Yao's weekly demand for basketballs is given by Qd = 3P2 where P is the price of basketballs. At the current price, Yao's demand for basket balls is unit elastic. What is the current price of a basketball, and how many basketballs is Yao buying at this price?

problem: Each day Akiko, who is in third grade, eats lunch at school.

She likes only Twinkies (t) and soda (s), and these provide her with utility of

U(t; s) = t3 . s - 3
Twinkies cost $0.15 each and soda costs $0.30 per cup at the school cafeteria. Akiko's parents give her $1.20 each day for lunch.

1) Find the marginal utility of Twinkies (MUt) and marginal utility of soda (MUs) if Akiko buys t Twinkies and s sodas.

2) What two equations must hold at the bundle (t; s) that maximizes Akiko's utility? Solve for her optimal combination of Twinkies and sodas.

3) The school is considering several possible policies to curb Twinkie consumption. Among the policies being considered are (a) limiting students to one Twinkie per day; and (b) raising the price of Twinkies to $0.45 each. The PTA (Parent-Teacher Association) has hired you to guide its decision. Discuss the expected effects of these two policies, using graphs and/or equations, as appropriate. (You may assume that all students have preferences identical to Akiko's.) Which policy will you recommend?

problem: Jacques gets utility from atoms and molecules. Last week, Jacques had a weekly income of $150, and the price of atoms was $12. Jacques consumed seven atoms and eleven molecules. This week, the price of a molecule is $10; Jacques's income and the price of atoms are unchanged. Suppose Jacques consumes six molecules this week.

1) Indicate both budget constraints and both bundles on a well-labeled graph, with atoms on the x-axis.

2) Is Jacques better off or worse off this week relative to last week? describe.

3) Are atoms and molecules complements or substitutes for Jacques? describe.

4) Next week, prices are expected to be the same as this week, but Jacques's income is expected to increase to $200. Add this future budget constraint to your graph. Relative to last week, will Jacques be better off next week, worse off, or can't you tell? describe.

problem: After observing Olga's consumption choices for two days in a row, Pavel, an economics student, tells here: You must not be rational. Yesterday, when bananas were on sale for $1 and peaches were $5, you bought five bananas and one peach. Today, bananas are back to $2 and peaches are still $5, and you're still buying five bananas!"

1) Show graphically Olga's budget constraint and chosen bundle from yesterday.

2) Are there any explanations other than irrationality that are consistent with Olga's behavior? Use words, diagrams, and equations in your answer.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9137

Have any Question? 


Related Questions in Microeconomics

The economy is full employment now the government wants to

The economy is full employment. Now the government wants to change the composition of demand toward investment and away from consumption without, however, allowing aggregate demand to beyond full employment. What is requ ...

Assignmentwe often have difficulty understanding how our

Assignment We often have difficulty understanding how our own customs and traditions could be viewed any way other than as right. In that regard, cultural relativism (viewing a custom from the other culture's perspective ...

Assignment land restoration proposalpart 1please see

Assignment: Land Restoration Proposal Part 1 Please see attachment for part 1 and only complete highlighted section for this assignment. Your team has been given the land rights to a 100-acre abandoned parcel of land. Th ...

Question 1 the agrizone corporation invests 140140 million

Question 1. The Agrizone Corporation invests $14.014.0 million in a new inventory tracking system. A. The opportunity cost of Agrizone's decision is the value of leaving the money unutilized. B. The opportunity cost of A ...

You are an economic consultant and encounter a firm with

You are an economic consultant and encounter a firm with the following data: Quantity of Labor Fixed Costs Variable Costs Total Costs Quantity Marginal Costs 5 $150 20 6 $150 28 7 $150 34 8 $150 38 The wage rate is $8 pe ...

Watch the video on the link belowthen answer the following

Watch the video on the link below. Then answer the following questions: 1. Would the incentives discussed in the video be able to work in a college setting? Why or why not? 2. Have you ever changed your behavior because ...

Microeconomicsdiscussion forumnote the video has closed

Microeconomics DISCUSSION Forum Note: The video has Closed Captioning. To activate it, start the video, mouse over the bottom of the video and click on the CC icon, then select from the menu. Note: The video has Closed C ...

Here is a link to the pdf version of dan ariellys

Here is a link to the pdf version of Dan Arielly's Predictably Irrational. http://radio.shabanali.com/predictable.pdf The Table of Contents starts on page 11. Scan through it and choose a chapter that looks interesting. ...

Can you write a great paper on a research economic topic10

Can you write a great paper on a Research economic topic 10 page paper Including abstract, introduction, content and conclusion, reference. You can choose any economic topics and analyze the issue from your own perspecti ...

Microeconomicswatch this 30 mins youtube link on how the

Microeconomics Watch this 30 mins. YouTube link on 'How The Economic Machine Works' You will enjoy it! https://youtu.be/PHe0bXAIuk0 Write down your understanding of 'How The Economic Machine Works' and make sure to suppo ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro