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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.
1.Identify the market structure of Domestic Airlines in Australia. Explain how you reached your decision using economic theory and facts.
2a Compare and contrast the own price elasticity of demand of business travellers as opposed to domestic leisure travellers. Give one relevant example to demonstrate your understanding.
2b Briefly discuss the cross-price elasticity of demand between Qantas and Virgin Australia. Give one relevant example to demonstrate your understanding.
2c How did demand for and supply of Domestic Airlines in Australia change in the past 5 years? In your answer, you should briefly discuss two relevant conditions (determinants) of demand and two relevant conditions (determinants) of supply in this market.
2d Illustrate the changes in 2.3 above in a demand and supply diagram showing clearly the impact on the equilibrium price and quantity.
how can Johannesburg municipality sustain the utilization of resources
how can Johannesburg enhance public safety?
How can the city of Johannesburg improve their financial stability?
microeconomics text. She has 16 hours per week of free time. Diagram May's time constraint.
If MU(f)=3/4(P/F)^1/4
and MU(p)=1/4(F/P)^3/4
where F is her time spent with friends at the mall and
P is her time spent working problems, how much time should May spend at each activity?
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.
#340153 on Dec 2023