Question
In: Economics
4.) If Sean's income increases from $10,000 to $50,000, then he buys 100 MARTA tokens rather...
4.) If Sean's income increases from $10,000 to $50,000, then he buys 100 MARTA tokens rather than his previous 200 MARTA tokens per year.
A. What's Sean's arc income elasticity of demand for MARTA tokens? __________.
B. Are MARTA tokens inferior or normal good for Sean? _____________________.
5) As the price of a student parking space increases from $2.50 to $3.50, the quantity supplied (number) of student parking spaces increases from 1050 to 1150.
A. What is the arc elasticity of supply of student parking spaces over this portion of the supply curve of student daily parking spaces? _________________.
B. Is the supply curve for daily student parking spaces elastic, unit elastic, or inelastic over the range of this price change? _________________________ .
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
4.) If Sean's income increases from $10,000 to $50,000, then he buys 100 MARTA tokens rather...
4.) If Sean's income increases from $10,000 to $50,000, then he
buys 100 MARTA tokens rather than his previous 200 MARTA tokens per
year.
A. What's Sean's arc income elasticity of demand for MARTA
tokens? __________.
B. Are MARTA tokens inferior or normal good for Sean?
_____________________.
5) As the price of a student parking space increases from $2.50
to $3.50, the quantity supplied (number) of student parking spaces
increases from 1050 to 1150.
A. What is the arc elasticity...
11. if a household’s disposable income increases from $50,000 to $100,000 and it’s consumption increases from...
11.
if a household’s disposable income increases from $50,000 to
$100,000 and it’s consumption increases from $40,000 to $80,000,
the MPS must be
A. 0.8
B. 0.4
C. 0.5
D. 0.2
E. 0.7
21
Assume we are at at income level where the C+I+G+X
(consumption+investment+government spending+net exports) function
lies above the 45-degree line. we can conclude that at this income
level:
A. The economy is an equilibrium.
B. There will be pressure to expand more production.
C. Households will save...
Anthony has an income of $10,000 this year, and he expects an income of $5,000 next...
Anthony has an income of $10,000 this year, and he expects an
income of $5,000 next year. He can borrow and lend money at an
interest rate of 10%.
Consumption goods cost $1 per unit this year and there is no
inflation.
Utility function is U(c1, c2)=4ln(c1)+2ln(c2)
a. How would his utility change if the interest rate goes up to
15%? Is he better off or worse off? Explain.
b. What about if there is a 10% inflation? Show how...
There are 100 shares outstanding of a company and Net Income is $10,000 and is paid...
There are 100 shares outstanding of a company and Net Income is
$10,000 and is paid out to shareholder as dividend without
retaining earning so the dividend per share is $100. Assuming a 10
percent required return, the value of a share of stock today.
Henry’s adjusted gross income is $50,000 in 2018. He donated a piece of artwork with a...
Henry’s adjusted gross income is $50,000 in 2018. He donated a
piece of artwork with a basis of $10,000 and a fair market value
(FMV) of $25,000. He has owned the artwork for 10 years. The
charity that Henry donated the artwork to is a public charity and
will display the art work in its art center. What is the maximum
charitable deduction in 2018 that Henry can take?
$0.
$10,000.
$15,000.
$25,000
Harry derives utility from two goods: X and Y . He has an income of 100...
Harry derives utility from two goods: X and Y . He has an income
of 100 dollars. Both X and Y cost 2 dollars per unit Given the
utility function U = XY (MUx = Y and MUY = X), how many units of X
and Y should Harry consume in order to maximize his utility?
(a) X = 100, Y = 0
(b) X = 0, Y = 100
(c) X = 50, Y = 50
(d) X =...
Finley buys a $10,000 e-bicycle from Spoke House, Inc., on credit but makes no payments on...
Finley buys a $10,000 e-bicycle from Spoke House, Inc., on
credit but makes no payments on the account. Ruby, the owner of
Spoke House, calls Finley at home on a Monday morning at three a.m.
On the phone, Ruby represents herself as IOU Collection Agency and
demands payment “or else.” The next day, Ruby sends Finley notice
that she has thirty days in which to request verification of the
debt and that if she makes such request, her payments due...
4. Suppose that investment demand increases by $100. Assume that households have a marginal propensity to...
4. Suppose that investment demand increases by $100. Assume that
households have a marginal propensity to consume of 80 percent.
Compute the first three rounds of multiplier effects as
follows:
a) What are the first cycle changes in spending? Total cumulative
change equals?
b) What are the second cycle changes in spending? Total cumulative
change equals?
c) What are the third cycle changes in spending? Total cumulative
change equals?
5. If a balanced budget government passes a new fiscal stimulus...
David purchased an immediate annuity with a single $50,000 premium payment. He elects to receive income...
David purchased an immediate annuity with a single $50,000
premium payment. He elects to receive income payments on a
quarterly basis. When will his income begin? (Search Chapter 3) a.
in one month b. in three months c. in six months d. in one year 22.
Nikki purchased a fixed deferred annuity with a $10,000 premium
payment. The contract offers a one-time bonus feature of 4 percent.
Which of the following statements is true? (Search Chapter 3) a.
The insurer...
Assume that a taxpayer can choose when he is to receive $10,000 of fully taxable income....
Assume that a taxpayer can choose when he is to receive $10,000
of fully taxable income. If the taxpayer receives the income at the
end of Year 1, he will receive exactly $10,000. If he delays
receipt of the income until the end of Year 2, the amount will grow
to $11,000. If the taxpayer takes the money at the end of Year 1,
he can invest the proceeds and earn a pretax return of 10 percent
over the next...
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