Question

In: Economics

Enoch's endowment this year is such that he is a buyer of good 2 and a...

Enoch's endowment this year is such that he is a buyer of good 2 and a seller of good 1. If the price of good 2 decreases before he can buy or sell any of his original endowment, will he remain a buyer of good 2 or switch to become a seller of good 2?

Solutions

Expert Solution

Since Enoch's endowment is such that he is a buyer of Good 2. When price of Good 2 decreases, he will not switch to become a seller of Good 2. When price of Good 2 decreases, He'll remain a buyer of Good 2.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

What is the endowment​ effect? A. People place a higher value on a good if they...
What is the endowment​ effect? A. People place a higher value on a good if they own it than they do if they are considering buying it. B. Wealthier individuals place greater value on a particualr good relative to poorer individuals. C. People place a higher value on goods that they want relative to similar goods that they own. D. The more you have of a​ good, the less value you place on consuming additional units of that same good.
If a good is elastic, such as jewelry, and a tax is imposed The buyer and...
If a good is elastic, such as jewelry, and a tax is imposed The buyer and the seller will share the tax burden The seller pays the tax, in total The buyer pays the tax, in total Demand will increase
We have the assignment (Buyer 1, Seller 1), (Buyer 2, Seller 2). The payoffs are: Buyer...
We have the assignment (Buyer 1, Seller 1), (Buyer 2, Seller 2). The payoffs are: Buyer 1 = 11 Seller 1 = 15 Buyer 2 = 10 Seller 2 = 6 Buyer 1 and Seller 2 can generate together 16. Buyer 2 and Seller 1 can generate together 26. Is the assignment stable?
Suppose that Tara’s endowment is (100,25), good x is the numéraire, and py=13. What is the...
Suppose that Tara’s endowment is (100,25), good x is the numéraire, and py=13. What is the y-intercept of Stefani’s budget line?
Problem 1: Endowment losses. An American university endowment has experienced severe losses over the past year....
Problem 1: Endowment losses. An American university endowment has experienced severe losses over the past year. The value of the university's endowment is $1B as of today (t=0). The interest rate (i.e. the expected annual investment return on the endowment) is r = 7%. (a) What amount can the university spend from the endowment at t=1 if it would like the amount spent to grow by g=4% per year from then on and has no other resources than the endowment?...
Bill has received an endowment ω > 0 of a perfectly divisible consumption good from his...
Bill has received an endowment ω > 0 of a perfectly divisible consumption good from his rich relatives. Bill is Canadian — so we think of ω as a certain quantity of maple syrup, the only thing Canadians need to survive and thrive in this world. Now, Bill cares a great deal about Denise, and if he consumes an amount x of his endowment of maple syrup, Denise receives the remaining ω − x, as long as this last quantity...
Bill has received an endowment ω > 0 of a perfectly divisible consumption good from his...
Bill has received an endowment ω > 0 of a perfectly divisible consumption good from his rich relatives. Bill is Canadian — so we think of ω as a certain quantity of maple syrup, the only thing Canadians need to survive and thrive in this world. Now, Bill cares a great deal about Denise, and if he consumes an amount x of his endowment of maple syrup, Denise receives the remaining ω − x, as long as this last quantity...
Bill has received an endowment ω > 0 of a perfectly divisible consumption good from his...
Bill has received an endowment ω > 0 of a perfectly divisible consumption good from his rich relatives. Bill is Canadian — so we think of ω as a certain quantity of maple syrup, the only thing Canadians need to survive and thrive in this world. Now, Bill cares a great deal about Denise, and if he consumes an amount x of his endowment of maple syrup, Denise receives the remaining ω − x, as long as this last quantity...
Bill has received an endowment ω > 0 of a perfectly divisible consumption good from his...
Bill has received an endowment ω > 0 of a perfectly divisible consumption good from his rich relatives. Bill is Canadian — so we think of ω as a certain quantity of maple syrup, the only thing Canadians need to survive and thrive in this world. Now, Bill cares a great deal about Denise, and if he consumes an amount x of his endowment of maple syrup, Denise receives the remaining ω−x, as long as this last quantity is non-negative....
abitha sells real estate on March 2 of the current year for $377,200. The buyer, Ramona,...
abitha sells real estate on March 2 of the current year for $377,200. The buyer, Ramona, pays the real estate taxes of $18,860 for the calendar year, which is the real estate property tax year. Round any division to four decimal places and use in subsequent calculations. Round your final answers to the nearest dollar. Assume a 365-day year. a. Determine the real estate taxes apportioned to and deductible by the seller, Tabitha, and the amount of taxes deductible by...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT