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If the consumers income rises from rs 10000 to 12000. As a result demand for goods increases from 20 units to 30 units per week. Find the income elasticity of demand per goods
1. The Superfund program uses strict liability and joint and several liability with respect to clean up costs. Explain why this system of liability is likely to result in the underreporting of toxic waste disposal sites. (25 points)
2. Summarize what is meant by the pollution haven hypothesis. Why might it be difficult to prove the existence of this theory? (10 points)
3. Empirical evidence does not consistently support the environmental Kuznets curve. What does this suggest about the tradeoff between economic growth and environmental degradation? (5 points)
Let x={1,3,5} and you= {2, 4,6,} . Find XUY and the cartesian product of X and Y.
Increase in net capital inflow will increase interest rates in the domestic loanable funds
market” – do you agree with this statement? Explain by drawing a diagram and
comment how you think investment will change if there is an increase in capital inflow.
When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the country.
“Since both the demand and the supply for the good are very blank, I am confident
that prices will change very little no matter what happens.”
A consumer has the following utility function for good X and good Y
𝑈 = 4𝑋 + 8𝑌
The consumer’s income is KShs 12,000, the price of good X is KShs 300 and the price of good Y is KShs 500.
Required:
(i) What type of preferences do the two goods represent? Explain (ii) Compute the marginal rate of substitution of the two goods (iii) Calculate the corresponding consumer demand functions
Mary's demand curve for food is Q =10
Her price elasticity of demand for food at price p* equals - 2/3 how much is p*
Note
a Marginal Cost (MC) is the derivative of the total cost (TC) with respect to quantity Q. TC = 300, + 5Q +10Q2 Then MC= 5 + 20Q
Explain the term opportunity cost
Is it true that optimal provision of public good is not possible if social marginal cost is equal to social marginal cost
