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how can Johannesburg municipality sustain the utilization of resources
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How can the city of Johannesburg improve their financial stability?
follows:
U(Qc,Qd) = (Qc)(Qd)
The marginal utility that Donald receives from carrots (MUc) and donuts (MUd) are given as
follows:
MUc = Qd MUd = Qc
Donald has an income (I) of $120 and the price of carrots (Pc) and donuts (Pd) are both $1
c.
Holding Donald's income and Pd constant at $120 and $1 respectively, what is Donald's
demand curve for carrots?
d. Suppose that a tax of $1 per unit is levied on donuts. How will this alter Donald's utility
maximizing market basket of goods?
e.
Suppose that, instead of the per unit tax in (e), a lump sum tax of the same dollar amount is
levied on Donald. What is Donald's utility maximizing market basket?
f.
The taxes in (e) and (f) both collect exactly the same amount of revenue for the government,
which of the two taxes would Donald prefer? Show your answer numerically and explain
4. Suppose an individual has a utility function u (x1, x2) = 2*2. Present your mathmatical expressions below in the simplest form you can.
a) Derive an expression for the marginal utility of good 1, and for the marginal utility of good 2.
b) Using these, solve for an expression describing the slope of an indifference curve: MRS (11, 12).
c) Sketch indifference curves for this consumer corresponding to u = 0,10,20. (Hint: z rı = k solves for m} = 11 (21) .... Solve this expression and approximate it on a graph for the three values of k.)
Suppose you have an income of $24 and the only two goods
you consume are apples (x1) and peaches (x2). The price of apples is $4 and the price of peaches is $3. Suppose that your optimal consumption is 4 peaches and 3
apples.
a. Illustrate this in a graph using indifference curves
and budget lines.
b. Now suppose that the price of apples falls to $2 and
I take enough money away from you to make you as happy
as you were originally. Will you buy more or fewer
peaches? Provide a graphical representation.
The opportunity cost of one ATV ▼
depend on how many you purchase because the opportunity cost of one good stays constant
for a straight-line boundary.
Using the equation of a line, and P for price and Q for quantity, what is the algebraic formula of this curve?
4. Suppose an individual has a utility function u (x1, x2) = 2*2. Present your mathmatical expressions below in the simplest form you can.
a) Derive an expression for the marginal utility of good 1, and for the marginal utility of good 2.
b) Using these, solve for an expression describing the slope of an indifference curve: MRS (11, 12).
c) Sketch indifference curves for this consumer corresponding to u = 0,10,20. (Hint: z rı = k solves for m} = 11 (21) . Solve this expression and approximate it on a graph for the three values of k.)
a) Define what is meant by a monotonic transformation of some consumer's utility function: u (21,22). b) Suppose u (01,02) = 3x1 + 2x2. Sketch indifference curves for this consumer corresponding to utility levels 10, 20 and 30. c) Suppose u (C1, 12) = 11 + 12. Sketch indifference curves for this consumers corresponding to utility levels 10, 20 and 30. d) Can these two utility functions be said to describe the same preferences: Is the function in b) a monotonic transformation of the function in c). Explain.
#340153 on Dec 2023