Economics Answers

What is the graph for the 3 types of goods' income and substitution effect of price "increase"?
Thankyou.

1.Externality and public goods. What is the difference between them? (a) With the aid of a chart, please explain why do we call some public goods and others private goods? With specific examples please explain why they are public/private. (b) What makes a market ‘fail’? Explain HOW such failure comes about.

2.With the aid of a diagram, please explain why we say that (a) a monopolistic competitor is inefficient. (b) How are some of these monopolistic competitors getting around these inefficient label to be more efficient?

3.Grandpa wants to renew his auto insurance. Let us suppose he can buy either a natural monopoly (no-fault) one or an oligopoly (liability). As a student in big business economics, (a) What are four basic differences on pricing, risk, and premium (b) Which one is better on: - Efficiency ground and - Equity ground

b) If price elasticity of demand (PED) is -1.7, it is feasible that a company cuts the price by 5% in order to generate enough total revenue.

a) Rita faces the choice problem between two gambles. In gamble one, she wins 200 if a coin comes up head and loses 100 if the coin comes up tail. In gamble two, she wins 2,0000 if coin comes up head and loses 10,000 if coin comes tail. Assuming her initial wealth ) is 10,000 find: i) If a risk neutral Rita would accept either, both or neither of the gambles. ii) What would be her decision on the gambles given her utility function U √w ? iii) Compare and explain your results in (i) and (ii). b) A consumer’s utility function is given as U (x, y)  In5x 2y678 9 Where x and y are two goods of consumption.
i) Find the indirect utility function of the consumer.
ii) Examine if Roy’s law is satisfied by the consumer’s demand function for y.
iii) Find the expenditure function of the consumer e (p, u) where price of
x = 1 and price of y = p.
iv) Find the Hicksian demand function hy(p,u) for commodity y, where the price of x
is 1 and the price of y is p.

true or false East Asia is considered a less developed nation.

Suppose the real rate of interest is 3%, and the money supply is growing at 5%. If the growth rate of the money supply
rises to 10%, then, according to the Fisher effect,
what is the change in the
real rate of interest?
nominal rate of interest?

Assume that there are four firms supplying a homogenous product. They have
identical cost functions given by C (Q) = 40 Q. If the demand curve for the
industry is given by μ = 100-Q
find the equilibrium industry output if the producers are Cournot competitors.
What would be the resultant market price? What are the profits of each firm?

Two players are engaged in a game of Chicken. There are two possible strategies, Swerve and Drive Straight. A player who chooses to Swerve gets a payoff of zero, regardless of what the other player does. A player who chooses to Drive Straight gets a payoff of 432 if the other player swerves and a payoff of –48 if the other player also chooses to Drive Straight. a. Represent the payoffs in the normal form. b. What is the pure strategy Nash equilibrium/equilibria? c. What is the probability of a player swerving or driving straight in the mixed strategy equilibrium d. From (c) what will be the expected payoff for the Nash equilibria?

Which type of firms are the major players in Barbados? Are they locally owned or foreign owned? Privately owned or publicly owned? Give relevant examples to support your analysis.

The canadian government cuts spending by $1 billion using both words $ diagrams, fully explain how this will affect the Canadian economy.
a.) If Canada is a closed economy
b.) If Canada is an open economy