Question
In: Economics
Kate has a monthly income of $500. She spends her income on cell phone calls (measured...
Kate has a monthly income of $500. She spends her income on cell phone calls (measured in minutes on the horizontal axis) and other goods (measured in units on the vertical axis). The price of a unit of other goods is PY=1. Kate’s mobile phone company offers her the choice of two cell phone plans:
Plan A: Pay a $40 monthly fee and make calls for $0.20 per minute.
Plan B: Pay no monthly fee and make calls for $0.40 per minute.
27. Suppose Kate has a utility function of the form U=min(0.1X,Y). Kate’s utility at her utility maximizing bundle is ______166.67_______ utils.
28. Suppose instead that Kate has well-behaved preferences and is currently buying minutes under Plan A. Now suppose that Plan B becomes available, and by coincidence her budget lines under Plan A and Plan B happen to intersect at the number of minutes she is currently buying under Plan A. Kate will be (better off, worse off, just as well off) _____________ buying minutes under Plan B.
Solutions
Rahul Sunny answered 7 months agoRelated Solutions
Kate has just completed her first year running Kate's Cards. She has been preparing monthly income...
Kate has just completed her first year running Kate's Cards. She
has been preparing monthly income statements and balance sheets, so
she knows that her company has been profitable and that there is
cash in the bank. She has not, however, prepared a statement of
cash flows. Kate's provides you with the year-end income statement
and balance sheet and asks that you prepare a statement of cash
flows for Kate's Cards.
Additional information:
1. There were no disposals of equipment...
Kate has just completed her first year running Kates's Card. She has been preparing monthly income...
Kate has just completed her first year running Kates's Card. She
has been preparing monthly income statements and balance sheets, so
she knows that her company has been profitable and that there is
cash in the bank. She has not, however, prepared a statement of
cash flows. Kate provides you with the year-end income statement
and balance sheet and asks that you prepare a statement of cash
flows for Kate's Cards.
Additional Information:
1. There were no disposals of equipment...
If a consumer spends all her income on two goods X and Y , then she...
If a consumer spends all her income on two goods X and Y , then
she can just afford either consumption bundle (5, 10) or (10, 7.5).
Write the equation of her budget line.
The phone company calculates a customer’s monthly cell phone bill as follows: monthly service charge: $35...
The phone company calculates a customer’s monthly cell phone
bill as follows: monthly service charge: $35 voice charges:
First 100 minutes: $0.018 per minute
Second 100 minutes: $0.034 per minute
Additional minutes: $0.055 per minute
a. What is the charge for a month in which 158 minutes were
used?
b. What is the charge for a month in which 311 minutes were
used?
c. Construct a piecewise function that gives the monthly charge
for x minutes of usage.
A study on cell phone use measured the number of minutes people chat on their cell...
A study on cell phone use measured the number of minutes people
chat on their cell phones each day. Three age groups were measured
and were found to be normally distributed. Use the data below to
answer the following questions.
Ages 11-21: µ = 306 mins., σ = 30 mins.
Ages 21-30: µ = 189 mins., σ = 22 mins.
Ages 31-40: µ = 240 mins., σ = 15 mins.
a) What percent of 21-30 year-old cell users talk 150...
A study on cell phone use measured the number of minutes people chat on their cell...
A study on cell phone use measured the number of minutes people
chat on their cell phones each day. Three age groups were measured
and were found to be normally distributed. Use the data below to
answer the following questions.
Ages 11-21: µ = 306 mins., σ = 30 mins.
Ages 21-30: µ = 189 mins., σ = 22 mins.
Ages 31-40: µ = 240 mins., σ = 15 mins.
a) What percent of 21-30 year-old cell users talk 150...
If she spends all of her income on bananas and melons, Natalie can just afford 9...
If she spends all of her income on bananas and melons, Natalie
can just afford 9 bananas and 10 melons per day. She could also use
her entire budget to buy 3 bananas and 12 melons per day. The price
of banana is 8 yen each. (a) How much is Natalie’s income per day?
Show the budget set of Natalie on a graph. (b) If the price of
banana increases to 16 yen each what should be Natalie’s income
that...
83. Suppose that the length of long distance phone calls, measured in minutes, is known to...
83. Suppose that the length of long distance phone calls,
measured in minutes, is known to have an exponential distribution
with the average length of a call equal to eight minutes.
a. Define the random variable. X= ________________.
b. Is X continuous or discrete?
c. μ= ________
d. σ= ________
e. Draw a graph of the probability distribution. Label the
axes.
f. Find the probability that a phone call lasts less than nine
minutes.
g. Find the probability that a...
18) Nour’s cell phone company sent her a large bill that she disagrees with. Nour can...
18) Nour’s cell phone company sent her a large bill that she
disagrees with. Nour can offer an Accord and Satisfaction
because
Select one:
a. The debt is unliquidated.
b.
The reasonable person would agree with her.
c.
The debt is liquidated.
d.
She cannot settle the debt until after the company files a
Complaint.
___________
20)
Rancher Rudy purchased five backhoes from Farm Supplies, Inc.,
but received five handcarts instead. Under Article 2 of the UCC,
Rudy
Select one:...
Kathy, an aggressive skier, spends her entire income on skis and bindings. She wears out one...
Kathy, an aggressive skier, spends her entire income
on skis and bindings. She wears out one pair of skis
for every pair of bindings she wears out.
(a) Graph Kathy's indierence curves for skis and
bindings.
(b) Now draw her indierence curves on the assump-
tion that she is such an aggressive skier that she
wears out two pairs of skis for every pair of bind-
ings she wears out.
(c) Suppose Kathy has $3,600 to spend on skis and...
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