Suppose that U = (0.2q1 -1 + 0.8q2 -1 ) -1 i. What is the elasticity...

Suppose that U = (0.2q1 -1 + 0.8q2 -1 ) -1 i. What is the elasticity of substitution? ii. If q1=0.5, and q2 = 1,

Expert Solution

Rahul Sunny answered 2 years ago

U( X,Y,Z)=10X^2Y^7Z^1 1.What is the own price elasticity of demand for Y?

U( X,Y,Z)=10X^2Y^7Z^11.What is the own price elasticity of demand for Y?2.What is the cross price elasticity of demand for Y with respect to the Price of X? With respect to the price of Z?3.What is the income elasticity of demand for Y?

Suppose u, and v are vectors in R m, such that ∥u∥ = 1, ∥v∥ =...

Suppose u, and v are vectors in R m, such that ∥u∥ = 1, ∥v∥ = 4, ∥u + v∥ = 5. Find the inner product 〈u, v〉. Suppose {a1, · · · ak} are orthonormal vectors in R m. Show that {a1, · · · ak} is a linearly independent set.

1) Suppose the supply equation is: Q = 11 + 1.30p What is the price elasticity...

1) Suppose the supply equation is: Q = 11 + 1.30p What is the price elasticity of supply if the market price is $44? 2) Suppose the demand equation is Q = 120- 0.75p. What is the price elasticity of demand if the price is $60 per unit and output is 75 units? The price elasticity of demand is ____? 3) Suppose that the demand function for aluminum is Q = 40- 0.2P where p is the price paid by...

Suppose U is uniform on (0,1). Let Y = U(1 − U). (a) Find P(Y >...

Suppose U is uniform on (0,1). Let Y = U(1 − U). (a) Find P(Y > y) for 0 < y < 1/4. (b) differentiate to get the density function of Y . (c) Find an increasing function g(u) so that g(U ) has the same distribution as U (1 − U ).

What does an elasticity of > 1 or < 1 imply both with elasticity of demand...

What does an elasticity of > 1 or < 1 imply both with elasticity of demand or supply?

1. Suppose that the utility function is equal to U(XY)= 2YX2 . What is the slope...

1. Suppose that the utility function is equal to U(XY)= 2YX2 . What is the slope of the indifference curve when Y = 2 and X = 7? Assume that good X is on the horizontal axis and good Y is on the vertical axis. A. 7 B.3 C. 1 D. 4/7 2.Kyle's utility function is U = 2X + 3Y, where X is units of good X, and Y is units of good Y. What is the marginal utility...

i. |u| ≥ 0 and |u| = 0 iff u = 0. ii. |au| = |a||u|....

i. |u| ≥ 0 and |u| = 0 iff u = 0. ii. |au| = |a||u|. iii. 1 |u| u (or just u/|u|) is a unit vector

i) Indicate what type of elasticity you are calculating (i.e. price, cross or income elasticity). ii)...

i) Indicate what type of elasticity you are calculating (i.e. price, cross or income elasticity). ii) Then calculate the elasticity coefficient (i.e. what number is the elasticity?). For this exercise use the simple percentage method (as there is not enough information to do the midpoint formula calculation). a) The price of oranges falls by 10% and the quantity of oranges demanded increases from 500 to 600. b) Consumers’ incomes increase by 5% and the quantity of oranges demanded increases from...

1)a) Suppose that a good has a price elasticity equal to 0 (Ed=0). what does this...

1)a) Suppose that a good has a price elasticity equal to 0 (Ed=0). what does this mean? Draw a demand curve to illustrate. b) What does it mean if a good has a price elasticity equal to1? 2) Briefly explain how each of the following government intervention strategies will affect a given market. a) a price ceiling on the rental housing market b) a price floor in the labor market 3) An economist determines that the price elasticity of demand...

What is elasticity? What is price elasticity of demand? What is price elasticity of supply?

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