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A University graduate recieves his first pay cheque. Discuss how scarcity,choice and opportunity cost arise for the graduate on his first shopping trip to the city
A maximizing consumer with preferences u = min (3x, 2y) and an income of 120 dollars pays pX= 2 for good x and pY= 2 for good y. Next month her income will decline to 60 dollars. After the income change x1 =
Equilibrium in any market can be described as that point where demand is equal to supply
Imagine that the utility maximizing consumer, endowed with a rational preference, gets swayed by advertisements for the products. Develop a modification of the utility maximization problem.
Consider an infinitely lived agent who has one unit of a commodity and she consumes it over lifetime. The commodity is not perishable and she receives no dividend or interest on saving. Consumption of the commodity in period t is denoted Xt. Let the lifetime utility function be given by: u(x0, x1,...,) = Σ B^t (ln Xt).[Limit 1 to infinity]. Here, 0 < B < 1.
Compute the consumer’s optimal consumption level for each period.
b) Demand function is given by
i) Find the interval of prices for which demand is positive.
ii) Express total revenue TR = PQ as a function of price. When is total revenue maximized?
iii) For which price is the own-price elasticity equal to -1?
What are development plans for Johannesburg(Gauteng)
Indicate which type of market can be characterized by the following features:
___________a. consumer choice of products
___________b. need for advertising
___________c. extraordinary profit even in the long-run
___________d. firm determine his own price
___________e. use of non-price competition
___________f. easy entry into the market
___________g. product sold maybe homogeneous or differentiated
___________i. firm has little power to control price
What can you say about the existing actions and concepts of the country
regarding STI?
