Mark spent $80 to buy 10 cans of beer (good X) and 5 bottles of wine...

Mark spent $80 to buy 10 cans of beer (good X) and 5 bottles of wine (good Y) last week. Each can of beer cost Px and each bottle of wine cost Py. Suppose he is a utility maximizing agent.

1. Now, the price of one bottle of beer has increased by $1 and he has spent the same amount of money to buy 8 cans of beer and 5 bottles of wine. Find the price of beer before the change and the price of wine.

2. What is the MRS before the price change and after the price change?

Expert Solution

Rahul Sunny answered 2 years ago

Mark A B Cindy A Mark: 10 Cindy: 10 Mark: 2 Cindy: 80 B Mark: 80...

Mark A B Cindy A Mark: 10 Cindy: 10 Mark: 2 Cindy: 80 B Mark: 80 Cindy: 2 Mark: 50 Cindy: 50 a. What is the nash equilibrium of this game? (Be sure to specify the strategy each player chooses). b. Does Cindy have a dominant strategy why or why not? c. Does Mark have a dominant strategy why or why not? d. Is this an example of the prisoner’s dilemma game why or why not?

2. Drinking Warm Beer We put 10 bottles of Molson Export and 3 bottles of Labatt...

2. Drinking Warm Beer We put 10 bottles of Molson Export and 3 bottles of Labatt 50 into the trunk of our black car on a hot summer day. We reach into the the cooler, pull out a random bottle b1 and drink it. Then we reach into the cooler, pull out a second bottle b2 and drink it. Describe the sample space S for this experiment. For each outcome ω∈S, determine Pr(ω). Let A be the event "b1 is...

10 Mark X if True &nb

10 Mark X if True _____Environmental Forces include both Internal and External forces impacting business. _____External forces are all uncontrollable factors that affects international business only. . _____Internal forces are controllable factors which management can control such as PRICE. 11 (a) Please list and briefly define 4 of the 7 Entry Strategies into Global Business.(IB) (i)_____ (ii)_____ (iii)_____ (iv) _____ (b) ______ is the easiest and less costly. _______ is the most expensive & risky? 12 Define and...

Mark the following statements as True or False (1/2 X 10 = 5 Marks) In...

Mark the following statements as True or False (1/2 X 10 = 5 Marks) In the management of cash and marketable securities, the primary concern is profitability. For most modern corporations, the more cash they have, the better off they are. Minimizing cash balances can improve overall corporate profitability. For most firms, the primary motive for holding cash is the transaction motive. Cash balances are usually determined by the amount of cash flowing through the firm on a yearly...

aL in wine (bottles) aL in cheese (kilos) Vintland 15 10 Moonited Republic 10 4 Vintland...

aL in wine (bottles) aL in cheese (kilos) Vintland 15 10 Moonited Republic 10 4 Vintland has 30 million hours of labor. Moonited Republic has 20 million hours of labor. QUESTIONS: (NOT SHUBHAM PLZ) A. If the equilibrium free trade relative price of cheese is ½ bottle of wine per kilo of cheese, what is the quantity of cheese produced in Vintland? B. If the equilibrium free trade relative price of cheese is ½ bottle of wine per kilo of...

5. Tricolo Corporation made a total of $80 million in revenue in 2020. They spent $4.3...

5. Tricolo Corporation made a total of $80 million in revenue in 2020. They spent $4.3 million in wages to their staff, $2 million in interest payments to bondholders, $0.5 million in dividends to shareholders, $300,000 in office supplies that were used within the year and $800,000 in capital assets (lasted for more than 1 year). Assume a real interest rate of 3%. a. What was their taxable income for 2020: If they were allowed to expense all capital assets?...

Suppose that my income is $100 and I go a supermarket to buy good X and good Y.

Suppose that my income is $100 and I go a supermarket to buy good X and good Y. My utility function is U(X, Y)=X^0.5+Y^0.5, and Px=1 and Py=2. Determine in which good I will use my first peso, my second peso, my third peso and my fourth peso. In the end what will be the final consumption bundle?

Suppose that U = XY . The prices of good X and good Y are $10...

Suppose that U = XY . The prices of good X and good Y are $10 and $5, respectively. How many units of good X does the consumer buy if she has $1000 of income? a) 10 b) 25 c) 50 d) 41

5. Assume that there is a market with 10 upstream intermediate-good producers and 10 downstream final-good...

5. Assume that there is a market with 10 upstream intermediate-good producers and 10 downstream final-good producers. Four of these firms are vertically integrated leaving 6 independent upstream firms and 6 independent downstream firms. Each upstream firm has a constant marginal cost equal to 0. The only cost to the independent downstream firms is the price of the intermediate good. The inverse demand in the final-good market is P = 100 – QF. One unit of the intermediate good is...

3. Give someone a chance to buy a good X at price $1 and they refuse....

3. Give someone a chance to buy a good X at price $1 and they refuse. But then, give them the good and ask them to sell it for $1 and, strangely, many times they refuse and demand a higher price. This is called the “endowment effect” - and in fact some evolutionary biologists believe it is an ingrained phenomenon that is completely explained when one looks at the long history from which we evolved. Economist John List investigated this...

Question