5. Suppose the wage is 80 per hour and that the consumer has 100 hoursH to work with. Suppose that the MRS is given by o: What will the consumer's choices of c and l be. Repeat with an upper boundof 10 hours. Repeat both parts with a 10% tax rate for all incomelevels. Suppose that the tax rate has two brackets so that income fromhours above H is taxed at 20 percent. How does the solution change?Suppose that consumers must instead pay a lump sum tax that raisesthe same tax revenues as the one listed above. How will outcomeschange?

The budget constraint of the individual can be written as follows:

Answered: 5. Suppose the wage is 80 per hour and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider a welfare program (such as housing) with an eligibility standard that requires that an individual's income be below some threshold level. Draw the individuals budget constraint with and without the subsidy (put labor on the x-axis and consumption on the y- axis.)
Solve all this question......you will not solve all questions then I will give you down?? upvote.... Need some help, will leave like. Thank you!
brownie has $100 that he can spend on milk and gas. A gallon of milk costs $5.However, government gives its citizens a coupon that entitles people to 20%discount on their first 10 gallon milk purchases. Gas costs $4 per gallon andgovernment charges $1 for each gallon of purchased gas. John’s utility functionis U (x, y) = 9x+10y, where x and y represent gallons of milk and gas consumed,respectively. What is John’s optimal consumption of milk and gas?Question 3 Part bIf government removes the quantity restriction to which the coupon applies (i.e.20% discount is applied to any quantity of milk purchased), what will be John’soptimal consumption?
The graph below shows the budget constraint between income and leisure for an individual. For every hour spent in leisure, one less hour is spent working and vice versa. Suppose that the individual starts making more than the guaranteed annual government support level when he/she works more than 2000 hours in a given year (and, in essence, spends 500 hours or less in leisure activities). Move the Government Support line to represent the level of government support for which the above is true. Provide your answer below: 30000 25000 (0, 25000) 20000- 15000- 10000- 5000- Government SUpport ($3000) (2500, 0) 2000 Leisure (Hours) 1000 3000 Income ($)
Please select correct group
Hugo likes computers (C) and video games (G) and has the following utility: U (C,G) = ln C + G(a) Suppose the price of each computer is pC = 1, the price of each game is pG = 1, and Hugo has income I = 20. Find the Marshallian demand for C and G.(b) Find Hugo’s indirect utility at the above price and income.(c) Suppose the government imposes a tax of 1 dollar on video games. What happens to Hugo’s consump- tion of each good and his indirect utility? How much money does the government raise?(d) Suppose the government instead imposes a lump sum tax that is equal to the amount of revenue from thepreviousproblem. SonowyouhavepC =1,pG =1,I=20−τ,whereτ istheamountofrevenue from part c). What happens to Hugo’s optimal consumption and his indirect utility? How does his indirect utility compare to the previous case of a tax on video games?
Assume two normal and ordinary goods A and B. If the good A is taxed and its compensated demand is constructed around the customer after tax utility level, would the excess burden due to tax on A from the customer's compensated demand be greater or less than her deadweight loss from her ordinary (uncompensated) demand? Use the effects to explain.
4. A consumer has preferences such that their Hicksian demands for r and y are given by r = 4 and y =. Initially, the price of r and y are both equal to 6 and at these prices the consumer achieves a maximum utility of 10. If the price of r doubles to 12, how much would the government have to pay this consumer in order for them to be able to achieve the same utility as before the price change? Justify your answer. %3D
Given f(x,y) = 2x2 - 6xy + 9y2, and Px= 7, Py= 5 and income, I = 175. Construct the budget contraint and Lagrange function and solve for the equilibrium values of x and y. (a) What is the equilibrium value of x? (Give your answer to two decimal places, if required) (b) What is the equilibrium value of y? (Give your answer to two decimal places, if required) (c) What is the value of the determinant of the bordered Hessian matrix? (Give your answer to two decimal places, if required) unanswered d. Based on the value of the Bordered Hessian, comment whether the objective function is maximized or minimized. Answer in one word.
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