Question
In: Economics
Use the following information to answer 31-35 Consider Jen, a consumer with preferences U left parenthesis...
Use the following information to answer 31-35 Consider Jen, a consumer with preferences U left parenthesis H comma F right parenthesis equals 0.4 log F plus space 0.6 log H, where H is the quantity of housing and F is the quantity of food (per month). Suppose Jen has a stipend of $1000/month which she uses to purchase food at a price of $2/unit and housing at a price of $3/unit. Jen's utility-maximizing bundle of goods should be. A. (170F, 220H) B. (100F, 100H) C. (200F, 200H) D. (350F, 100H)
Suppose that Jen's employer subsidizes the food coupon by paying $1 of her each unit of food costs, thereby effectively lowering the price Jen pays for food to $1/unit. Jen's new optimal consumption bundle should be A. (340F, 220H) B. (150F, 100H) C. (310F, 230H) D. (400F, 200H)
Suppose that her employer simply gave Jen the dollar cost you found in Q32 as a lump sum (instead of subsidized food). Jen’s new optimal consumption bundle should be A. (150F, 100H) B. (280F, 280H) C. (115F, 115H) D. (340F, 240H) Jen gains A. same utility from both. B. a higher utility from the food subsidy. C. a higher utility from the lump-sum equivalent transfer. D. maybe higher or lower utility, the information is not enough.
Which following statements is TRUE? A. Food and housing are complement goods. B. Income elasticity of food is greater than zero. C. Housing is inferior good. D. Substitution effect is positive.
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
Fill in the blanks to complete the following statements. Bold left parenthesis a right parenthesis(a) For...
Fill in the blanks to complete the following statements.
Bold left parenthesis a right
parenthesis(a)
For the shape of the distribution of the sample proportion to
be approximately normal, it is required that
np(1minus−p)greater than or equals≥______.
Bold left parenthesis b right
parenthesis(b)
Suppose the proportion of a population that has a certain
characteristic is
0.10.1.
The mean of the sampling distribution of
ModifyingAbove p with caretp
from this population is
mu Subscript ModifyingAbove p with caretμpequals=______.
(This is a...
Fill in the blanks to complete the following statements. Bold left parenthesis a right parenthesis (a)...
Fill in the blanks to complete the following statements. Bold
left parenthesis a right parenthesis (a) For the shape of the
distribution of the sample proportion to be approximately normal,
it is required that np(1−p) greater than or equals ≥.. Bold left
parenthesis b right parenthesis
(b) Suppose the proportion of a population that has a certain
characteristic is 0.05. The mean of the sampling distribution of p^
from this population p^ with t μ^ p equals =______. . Bold...
Consider a consumer with preferences over two goods (good x and good y) given by u...
Consider a consumer with preferences over two goods (good x and
good y) given by
u ( x , y ) = x ⋅ y.
Given income of I and price of good yas $ P yper pound and price
of good xgiven as $ P xper pound, the consumer chooses the optimal
consumption bundle given as
x ∗ = I 2 P x
and
y ∗ = I 2 P y .
Given P x = $ 1per pound...
Use the following choices to answer questions 31 – 35. a.) salivary amylase
Use the following choices to answer questions 31 –
35.
a.) salivary
amylase
b.)
cholesterol
c.)
pharynx
d.)
cephalic
e.) chyme
31.)
Food in the stomach is squeezed and mixed with gastric juices,
forming a semiliquid called.
32.)
_____ is an essential component of plasma membranes, can be
modified to form bile salts and steroids such as sex hormones.
33.)
The _______ phase occurs before food enters the stomach and is
triggered by aroma, sight, and thought.
34.) ...
Consider IS-LM model. Let the money demand function be left parenthesis M over P right parenthesis...
Consider IS-LM model. Let the money demand function be left
parenthesis M over P right parenthesis to the power of d equals 60
minus 20 r plus 4 Y, the consumption function be C equals 12 plus
0.8 left parenthesis Y minus T right parenthesis and the investment
function be I equals 30 minus 2 rI where r is the real interest
rate in %. Let T denote taxes, G denote government purchases, P
denote the price level and M...
Consider IS-LM model. Let the money demand function be left parenthesis M over P right parenthesis...
Consider IS-LM model. Let the money demand function be left
parenthesis M over P right parenthesis to the power of d equals 60
minus 20 r plus 4 Y, the consumption function be C equals 12 plus
0.8 left parenthesis Y minus T right parenthesis and the investment
function be I equals 30 minus 2 rI where r is the real interest
rate in %. Let T denote taxes, G denote government purchases, P
denote the price level and M...
Consider a consumer with preferences for consumption today versus tomorrow represented by the utility function U(C,C')...
Consider a consumer with preferences for consumption today
versus tomorrow represented by the utility function U(C,C') =
C2/5C'3/5. Let income today is 50, income tomorrow is 20, taxes
today are 10, and taxes tomorrow are 15.
a) Assume that there is a different borrowing versus lending
rate, so that the lending rate is only 5% but the borrowing rate is
10%. Calculate the optimal consumption bundle. (hint: the consumer
will be a saver)
b) On a (C,C') graph that is...
Consider a consumer with preferences for consumption today versus tomorrow represented by the utility function U(C,C')...
Consider a consumer with preferences for consumption today
versus tomorrow represented by the utility function U(C,C') =
C2/5C'3/5. Let income today is 50, income tomorrow is 20, taxes
today are 10, and taxes tomorrow are 15.
A. Assume that there is a different borrowing versus lending
rate, so that the lending rate is only 5% but the borrowing rate is
10%. Calculate the optimal consumption bundle. (hint: the consumer
will be a saver)
B.On a (C,C') graph that is properly...
Consider an economy in which the representative consumer preferences are described by U(C, l) = 2C^(1/2)...
Consider an economy in which the representative consumer
preferences are described by U(C, l) = 2C^(1/2) + 3l. The total
number of hours available to the representative consumer is h = 1,
and the market real wage is w. The representative firm produces the
final consumption good using the technology function Y = N 1/2 ,
where N is the labour. Additionally, assume that there is no
government in the economy, that is G=0.
1. Describe the relationship between MRSl/C,...
Consider a consumer with preferences represented by the utility function: u(x, y) = x1/4y1/2 Suppose the...
Consider a consumer with preferences represented by the utility
function:
u(x, y) = x1/4y1/2
Suppose the consumer has income M = 10 and the prices are px=1
and Py = 2.
(a) Are goods x and y both desirable?
(b) Are there implications for the utility maximization problem
for the consumer from your finding in 1a? If so, explain in
detail.
(c) Derive the utility maximizing bundle.
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