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Martha s preference over two goods x and y is represented by the utility function U = 5xy. Her budget constraint is given by 5x +y =30. Plot budget constraint with y on the vertical - axis on the horizontal axis.. Find the marginal utility of x and y...Find the MRS.. Find the MRT...Given her budget how much of each good should she consume in order to maximize her utility show your work.
Given the Cobb - Douglas production q1 = 50l0.3K0.5,q2 = 50L0.4K0.6,and q3 =50l0.5K0.6..Calculate the level of output when L = 10 and K = 15 for each production function.. Calculate the level of output when both inputs double L = 20 and K =30...What types of returns to scale does each production function exhibit
why should a firm increase its output when MR > MC and decrease its output when MR < MC? Explain
Consider the following facts about mobile money transactions. Currently, MTN and AirtelTigo charge 1% on mobile money transactions up to a total charge of GHS 10 per transaction while Vodafone charges 0%. The E-levy which is currently being discussed is intending to impose an additional 1.5% charge on most electronic transactions.
“The research we did also told us that there will be about 24 per cent attrition rate in the three months to six months that we will introduce it. The same research told us what should be done to bring back these people after a while, and we have all these things in place”
Suppose that the 3-6 months constitute short-run and any period after that constitutes long-run. Based on the minister’s statement, is the demand for mobile money services more or less elastic in the short-run compared to the long-run? Is this consistent with whatwelearnedaboutelasticity in thisclass? Explain
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Draw a diagram showing the effects of an increase in the price of bus journeys on the equilibrium market price and output in the weekly market for e-scooters in the UK.
Now suppose the minister for employment proposes an increase in the minimum wage. What effect would this increase have on employment? Does the change in employment depend on the elasticity of demand, the elasticity of supply, both elasticities, or neither?
Draw a diagram showing the effects of a decrease in the wage rate of bricklayers on the equilibrium market price and output in the annual market for new houses in France.
Fariha's parents increase her allowance, so she spends more money on coffee every week. How can you explain this with a graph?
Arya decides to set aside $300 from her paycheck every month. How will this affect her demand curve? (You may explain without using specific numbers).
Suppose that the quantity of coffee demanded declines from 206,000 gallons per week to 194,000 gallons per week as a consequence of a 10 percent increase in the price of coffee drinks. The price elasticity of demand is a. 1.66. b. 6.00. c. 0.60. d. 1.40. Show the calculation.
