4. A school chooses whether to penalize parents who pick up their children late with a lump sum fee of $25 or a per-minute fee of $2. (a) One parent has a total daily income of $100. Sketch his PPC with dollars of remaining income on the y-axis and minutes of childcare on the x-axis if the school chooses the per-minute fee. (b) What does this PPC look like if the school chooses the lump-sum fee?

Alda is willing to pay $2,000 to visit her favoritecousin over spring break. A month ago, she bookeda trip costing $1,200. Spring break has arrived, butAlda needs one day to finish an important paperbefore she goes. Alda could cancel her trip and geta refund of $800. Or, she could pay an additional$1,000 (on top of the $1,200 she already paid) torebook the trip for two days later. Explain whatAlda should do.

Q3. The table below depicts the maximum buying prices and minimum selling prices that potential buyers and sellers have for a horse. Assume that a horse is considered to be a good of the first order. Potential Buyer $300 $280 $260 $240 $220 $210 $200 $180 $170 $150 Al A2 A3 A4 AS A6 A7 A8 A9 A10 Potential Seller $100 $110 $150 $170 $200 $215 $250 $260 Bl B2 B3 B4 B5 B6 B7 B8 (a). Based on the original valuations of potential buyers and sellers in the table above, identify the market clearing price that will bring this market to a state of rest. Provide a description of the important properties of this price. (b). Distinguish between the original valuations with which the market participants enter the market and the momentary valuations that prevail when they engage in exchange. Focusing on the potential sellers, explain why each of them would try to align their momentary valuations with the market clearing price? (c). Assume now that trade takes place at a price that is not the market…

fonsumer's demand xy for two different and the consumer's in come is $72. different Consumer's demand xy for chosen to maximize two the శ్రిందికి goods are x² lefility function The per respectively unit of , and the Consumer's in come is $7 x and y are $3and $4. 22,2 © telrite out the fagrangean for the Constrained maximization problem © Find the utility maximizing demands for both goods and he Larange multiplier, 2 o What is the change in consumer's ufility if income Changes from $72 to $75

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The figure below show the initial optimal point of a family who has to decide how much kids (K) to have in 5 years and at the same time how much of all other goods to consumer (measured as composite good in dollars). Now assuming that kids are inferior goods/services, show the new optimal point as e2 if the income of the family increases. IC₁ to K

The following graph shows the budget constraint for a household who has to choose between consumption goods and health care services. Please explain tho difference between the two lines. Budget constraint Corsumer goods X Y(H) = pX + qM Y(H) = pX + qM Haalth care services M Y-Incone H=health ppeice of consunmer goods 9*peice of healh care services

The data beloN shows how the marginal benefit of attending Durham Bulls baseball games varies for Joan with the number of games attended this season. Number of Games Attended This Season Marginal Benefit (5) 1 25 20 15 10 5. 5. The price of a ticket is $18 and is equal to the marginal cost of attending each game. Assuming that Joan behaves rationally, she will attend OA. 2 games this season, OB. 3 games this season. OC.5 games this season, O0.1 garme this season OE. 4 games this season.

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