Search & Filtering
Ms. A's income consists of Rs 1,00,000 per year from pension plus the earning from whatever she sells of the 2000kg of rice she harvests annually from her farm. She spends this income on rice(x) and on all other expenses (y) are measured in rupees, so that the price of y is Rs1. Last year rice was sold for Rs 20 per kg and Ms A's rice consumption was 2000kgs, just the amount produced on her farm. This year the price of rice Rs 30 per farm. A has standard convex preferences over rice and all other expenses . Answer the following two questions without referring to any utility function or indifference curves.
a) What will happen to her rice consumption this year- increase, decrease, or remain the same? Give a clear explanation for your answer.
b) Will she be better or worse off this year compared to last year? Explain clearly
When monopoly market turns into a perfectly competitive market?
The utility approach to consumer demand theory is based on the assumption of cardinal utility, while the indifference curve approach is based on ordinal utility; what approach is better? why
Given F(K,L) = AKa Lb, show that a and b determine whether the function is contact, increasing or decreasing return to scale (show one example in each case).
Demand equation is P = 30- 0.1Q²
a) write an equation for the point elasticity as function of Quantity.
b) At what price is demand unitary elastic?
Given that U=f(q1, q2) and p1=2$, p2= 5$ per kg. If the budget constraint of a consumer is 100$, find the maximum quantity of goods q1 and q2 which the consumer can consume to maximise utility
A cob Douglas production function for a firm is given as Q=4L ½K½. The firm has also established that wage rate and interest paid on capital are $3 and $5 respectively for a production period. The firm intents to spend $200 million for the period on production cost. Compute the levels of capital and labor that will maximize output. What is the maximum output?
Qd=30-p qs=2p
Understanding the cost of living concept may be challenging because we do not often compare to different geographic locations and/or increases and decreases over the years.
Find the price elasticity of demand at the point where quantity demanded is equal to quantity supplied
