2. Mrs. Robinson considers 8 cliffins (c) to be equivalent to 3 wiggins (w): a. Write...

2. Mrs. Robinson considers 8 cliffins (c) to be equivalent to 3 wiggins (w):

a. Write down a utility function UR(c, w) that represents Mrs. Robinson’s preferences over cliffins and wiggins.

b. The price of cliffins and the price of wiggins are pc and pw, respectively, and Mrs. Robinson has an income equal to Y. Suppose pc/pw =1/4. Solve for Mrs. Robinson’s Marshallian demand functions for cliffins and wiggins.

c. Mrs. Banks, a friend of Mrs. Robinson’s, has the following expenditure function (EB): EB(pc, pw, UB) = 2UB 1/2pc 1/2pw 1/2 UB denotes Mrs. Banks’ utility; as before, pc and pw denote the prices of cliffins and wiggins, respectively. What is the minimum level of expenditure Mrs. Banks must incur to attain a utility level of UB = 49 if pc = 4 and pw = 25?

d. Suppose pc rises to $9 and pw falls to $16. By how much (in dollars) has Mrs. Banks’ cost of living changed relative to before (i.e. compared to part c)?

e. Solve for Mrs. Banks’ Hicksian demand functions for cliffins and wiggins. (4 points).

Solutions

Expert Solution

8 cliffs+3wiggins=11cw

a. (c,w )=(8,3)

b. pc/pw=1/4

c=1

w=4

c. pc=1/2

pw=1/2

UB=1/2

(pc,pw,UB)=(1/2,1/2,1/2)

d.pc=9,pw=16

pc/pw=9/16

ans=0.5625

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

Write the IUPAC name for each of the following compounds: a. [Cr(NH3)5Cl]2+ b. [W(NH3)3(H2O)3]2+ c. [Fe(H2O)6]3+

Cologne Formulations Cologne Formulation %w Alcohol %w Essential oil %w Water C-1 60.0 3.0 37.00 C-2...

Cologne Formulations Cologne Formulation %w Alcohol %w Essential oil %w Water C-1 60.0 3.0 37.00 C-2 40.0 3.0 57.00 C-3 60.0 5.0 35.00 Using this table we are required doing three cologne with equal amount of 50 g ,evaluate the fragrance, persistence and the effect on the skin and fabric of the cologne. If we divided each cologne into two and store one on the refrigerator and one at room temperature. which one will better in terms of fragrance, presistense...

Directions: Convert the following problems below to c++ equivalent code Problem 3: Take any 2 digit...

Directions: Convert the following problems below to c++ equivalent code Problem 3: Take any 2 digit number from 31 to 99. (You do not have to check the numbers just assume the user will enter a valid number so long as you tell them to). Store an extra copy of this number for later 3. Add 82 to the number. 4. Remove the hundreds place from your number 5. Add 1 to the number. 6. Subtract this from your...

Exercise 4-8 Equivalent Units; Cost per Equivalent Unit; Assigning Costs to Units-Weighted-Average Method [LO4-2, LO4-3, LO4-4]...

Exercise 4-8 Equivalent Units; Cost per Equivalent Unit; Assigning Costs to Units-Weighted-Average Method [LO4-2, LO4-3, LO4-4] Helix Corporation uses the weighted-average method in its process costing system. It produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the beginning of processing in that department. Data for May for the first production department follow: Percent Complete Units Materials Conversion Work in process...

-Write a program in C++: • to find the sum of the series 1! /1+2! /2+3!...

-Write a program in C++: • to find the sum of the series 1! /1+2! /2+3! /3+4! /4+5! /5 using the function1, • to convert decimal number to binary number using the function2, • to check whether a number is a prime number or not using the function3, • to check whether two given strings are an anagram using the function4. important must do in (Multi-Filing) of c++

Find 3 definitions of e. Prove they are equivalent (transitivity: a=b, b=c, and a=c) prove the...

Find 3 definitions of e. Prove they are equivalent (transitivity: a=b, b=c, and a=c) prove the 3 defintions of e are equivalent.

Assume that, in the short-run, K = 16, w = 3, r = 8, and Q...

Assume that, in the short-run, K = 16, w = 3, r = 8, and Q = 3 4KL. Graph the Total Cost, Fixed Cost, Variable Cost, Average Total Cost, Average Variable Cost, Average Fixed Cost, and Marginal Cost curves. Label your graph carefully.

Using C Language Write a program segment that computes 1 + 2 + 3 + ......

Using C Language Write a program segment that computes 1 + 2 + 3 + ... + ( n - 1) + n , where n is a data value. Follow the loop body with an if statement that compares this value to (n * (n + 1)) / 2 and displays a message that indicates whether the values are the same or different. Please give me code to just copy and paste

write a power series for f(x)=5/(x+3) c=2

Find the minimum cost SOP expression for the function F(w, x, y, z)=∏M(2, 3, 6, 8,...

Find the minimum cost SOP expression for the function F(w, x, y, z)=∏M(2, 3, 6, 8, 9, 11, 12, 13) using k-map. Write also all prime implicants and essential prime implicants.

Subjects