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paul spend his income of 100$ per week on two goods : pizza ( which cost $8each ) and milk( which cost $1 per gallon) at his current level of consumption , the marginal utility from the last pizza consumed is 32 and the marginal utility from the last gallon of milk is 4. is colin maximizing his utility? why or why not? if not , what should paul do to achieve a higher level of utility ?
Given market demand Qd = 50 - P, and market supply P = Qs + 5
A) Find the market equilibrium price and quantity?
B) What would be the state of the market if market price was fixed at Birr 25 per unit?
C) Calculate and interpret price elasticity of demand at the equilibrium point
Technology advances in the Information and Communications Technology (ICT) sector over the past two decades have reduced the cost of computer chips. How do you think this has affected the market for computer hardware, computer software and typewriters?Support your answers for each market mentioned above with appropriate diagrams on the market forces of supply and demand.
Given: Marginal Utility Schedule of Jun for Beer Q MU in monetary terms 1 10 2 7 3 5 4 3 Price of beer = P5.00 a. How many bottles of beer does Jun needs to take to maximize his utility? Justify your answer. *
Marginal Utility Schedule of Jun for beer Q MU in monetary terms 1 10 3 7 3 5 4 3 Price of beer =P5.00 a. How many bottles of beer does jun needs to take to maximize his utility?
Derive supply function in a graf
You are a racehorse trainer with a horse entered to run in the Japan Cup. Your horse has 60% chance of coming in 1st in the race with a prize of $100,000. You have a 40% chance of losing which means you get nothing in prize money. Your expected value of running your horse in the race is:
A. $100,000.
B. $40,000.
C. $60,000.
D. $4,000
In the following scenario Igor is given the following information:
A 40% chance of winning $1,500 and a 60% chance of losing $1,000.
This would be known as a(n):
A. fair gamble.
B. unfair gamble.
C. almost-fair gamble.
D. better-than-fair gamble.
Your place of employment offers the choice of working from home or working at the office. At times it can be difficult to find a parking place near the office. When this is the case, employees will make the decision to turn around and go home. Every Wednesday your employer offers a catered lunch from an exclusive restaurant to all employees working that day in their office. This means that on Wednesday’s you can expect the optimal amount of time employees are looking for a place to park will ______. This is because ________.
A. decrease; the marginal cost of search is higher
B. increase; the marginal cost of search is lower
C. increase; the marginal benefit of search is higher
D. decrease; the marginal benefit of search is lower
Chris has an autographed copy of a Nat King Cole album that he values at $100. If he sells the album at a garage sale it will be sold to a buyer with a reservation price of $175. If he sells it on eBay it will be sold to a buyer with a reservation price of $500. eBay will charge Chris $50 to auction the album. Compared to selling the album at a garage sale, auctioning the album on eBay will lead to:
A. no change in total economic surplus.
B. total economic surplus to increase by $500.
C. total economic surplus to increase by $275.
D. total economic surplus to increase by $100.
