Question
In: Economics
4. Problem Set #7 - Part II - 14 Bucky spends all his money on UW-Madison...
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Problem Set #7 - Part II - 14 Bucky spends all his money on UW-Madison t-shirts and jugs protein powder (to help him bulk up for push-ups). A t-shirt costs $15 and a jug of protein powder costs $30. At his current consumption point, Bucky's marginal rate of substitution (MRS) of t-shirts to jugs of powder is 3. This means that Bucky is willing to trade 3 t-shirts for one jug of protein powder. Does Bucky's current bundle maximize his utility - in other words, make him as well of as possible? If not, how should he change it to maximize his utility? |
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Solutions
Rahul Sunny answered 1 year agoRelated Solutions
For the data set 1 4 4 4 7 7 7 9 12 13 14 14...
For the data set
1
4
4
4
7
7
7
9
12
13
14
14
14
15
16
16
17
17
19
20
22
23
23
24
24
25
26
26
27
29
29
31
34
34
35
35
36
37
43
44
44
47
48
48
49
50
52
52
54
54
55
56
56
58
58
59
59
60
64
64
65
66
69
69
73
76
76
77
77
79
(a) Find the 76th percentile.
(b)...
Krishna only spends his money on clothes, c, and food, f. His utility function is quasilinear:...
Krishna only spends his money on clothes, c, and food, f. His
utility function is quasilinear: U(f, c) = 10ln(f) + c. His income
is $2000 per month. The price of clothes is $10 while the price of
food is $5.
1. Derive his demand function for clothes and food. Given the
prices and income, state quantity demanded of clothes and food.
2. Due to a new free trade agreement, the price of clothes falls
to $5. What is the...
Stephanos spends all of his $500 allowance on slices of pizza and gas for his pickup...
Stephanos spends all of his $500 allowance on slices of pizza
and gas for his pickup truck. He spends eighty percent of this on
pizza and the rest on gas. Because of a shortage of gas, the price
of gas increases by 40%. This makes his consumption of gas
(measured in gallons) fall by 20%. If he keeps spending all his
money on pizza and gas, what is the percentage change in his
consumption of pizza (measured in slices)?
QSO 320 Problem Set (Problem Set 4-20) Complete problem 4-20 at the end of Chapter 4...
QSO 320 Problem Set (Problem Set 4-20)
Complete problem 4-20 at the end of Chapter 4 in your textbook.
You will demonstrate your work using Excel templates provided. You
do not need to include a graphical procedure.
Problem 4-20
X
Y
Profit
$4
$5
=SUMPRODUCT(B5:C5,$B$4:$C$4)
Constraints
Labor
1
2
=SUMPRODUCT(B7:C7,$B$4:$C$4)
<=
10
Material
6
6
=SUMPRODUCT(B8:C8,$B$4:$C$4)
<=
36
Storage
8
4
=SUMPRODUCT(B9:C9,$B$4:$C$4)
<=
40
LHS
Sign
RHS
Hi All,
The homework problem does not seem straight forward, so I put...
A consumer spends all of his income only on two goods, X and Y. His utility...
A consumer spends all of his income only on two goods, X and Y.
His utility function is given by U=XY. The price of good X is $P
and the price of good Y is $2. His income is $400.
(4) Derive the PCC (price consumption curve) of this consumer as
the price of good X changes .
(3) Derive this consumer’s demand function for good X.
(3) As the price of good X falls, this consumer’s demand becomes
less...
A consumer spends all of his income only on two goods, X and Y. His utility...
A consumer spends all of his income only on two goods,
X and Y. His utility function is given by
U=XY. The price of good X is $P and the
price of good Y is $2. His income is $400.
Derive the PCC (price consumption curve) of this
consumer as the price of good X changes .
Derive this consumer’s demand function for good
X.
As the price of good X falls, this consumer’s demand becomes
less elastic. True or...
Problem 7 (14 pts.) Tompkins Company bought some property this year and signed a $350,000, 4%,...
Problem 7 (14 pts.)
Tompkins Company bought some property this year and signed a
$350,000, 4%, 5-year note payable to obtain it.
Tompkins’ monthly payment is $5,500. Complete the table below
for the first three payments.
Interest Expense
Reduction of principal
Remaining principal
Month 1
Month 2
Month 3
Problem 8 (16 pts.)
Use the following table to assist you in calculating your
answers. Show your work.
2%
4%
8%
16%
PV of $1
10...
John Q. Public spends all of his income on CDs and hamburgers. Draw his budget constraint...
John Q. Public spends all of his income on CDs and hamburgers.
Draw his budget constraint for these products when the following
are true: 1) Graph A: his income is $80, the cost of a CD is $2 and
a cost of a burger is $2. 2) Graph B: his income is $120, the cost
of a CD is $2 and the cost of a burger is $2. 3) Graph C: his
income is $80, the cost of a CD...
(a) Haris spends all of his income on apples and oranges. He thinks that apples and...
(a) Haris spends all of his income on apples and oranges. He
thinks that apples and oranges are perfect substitutes; one apple
is just as good as one orange. Apples cost $4 a unit and oranges
cost $5 a unit. His income is given by $120 per month. If the price
of apples increases to $6 a unit, calculate the (i) Slutsky
substitution (ii) Income and (iii) the total effect of a price
decrease on the consumption of apples. (b)...
1-Consider the below data for ALL PARTS of this question: 4 2 5 7 8 14...
1-Consider the below data for ALL PARTS of this question:
4 2 5 7 8 14 1 5 23 17
What is the sample MEAN?
------------------------------------
Note: Enter X.X AT LEAST ONE DIGIT BEFORE THE DECIMAL, ONE AFTER
and round up AFTER all calculations. Thus, 7 is
entered as 7.0; 3.562 is entered as 3.6; 0.3750 is entered as 0.4;
17.351 is entered as 17.4
2-Consider the below data for ALL PARTS of this question:
4 2 5 7 8...
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