9. There are two types of residents in a city: 70% low-income residents and 30% high- income residents. The government is considering two projects with same costs. If project A is taken, each low-income resident can save his transportation cost by $1,000 and each high-income resident can save his transportation cost by $750. If project B is taken, each low-income resident can save his transportation cost by $800 and each high-income resident can save his transportation cost by $1,350. If money is more important to low-income people than to high-income people, which project is better? Let the weights assigned to benefits and costs of low-income and high-income residents be w and 1, respectively. What values of w make project A better?

9. There are two types of residents in a city: 70% low-income residents and 30% high- income residents. The government is considering two projects with same costs. If project A is taken, each low-income resident can save his transportation cost by $1,000 and each high-income resident can save his transportation cost by $750. If project B is taken, each low-income resident can save his transportation cost by $800 and each high-income resident can save his transportation cost by $1,350. If money is more important to low-income people than to high-income people, which project is better? Let the weights assigned to benefits and costs of low-income and high-income residents be w and 1, respectively. What values of w make project A better?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Answer the question based on this table showing the marginal benefit that a particular public…

A: The extra advantage or satisfaction a consumer gets from purchasing one more unit of an item or…

Q: To produce one more yard of X , you need 1/MPLCx hours of labor. true or false

A: The marginal product of labor refers to the additional amount of output produced with the employment…

Q: According to the Centers for Disease Control and Prevention, a 40-year-old woman has a 15 in 10,000…

A: Insurance is an agreement in which an insurer repays one more against misfortunes from explicit…

Q: Give an example of a good that is nonrival in consumption and nonexcludable. What do economists call…

A: Non-rival refers to those goods which the consumers do not have to compete for. The use of these…

Q: Why do booms and recessions tend to be transmitted across national borders? Please frame your…

Q: Municipal Energy, each produce suppose two utilities, Peoples Electric pollution per year. The…

A: In economics, utility can be defined as satisfaction. Anything that gives a consumer a sense of…

Q: Sadaam Hussein is deciding where to hide his weapons of mass destruction (WMD), while the United…

A: The Nash Equilibrium in the mixed strategy situation refers to the responses of each player are…

Q: It is estimated that the national cost of teen childbearing to taxpayers is in excess of $9 billion.…

A: A taxpayer refers to a person or an organisation which is subjected to a tax, it refers to the one…

Q: From a resource-based view, what valuable and unique resources and capabilities does Microsoft have…

A: The resource-based view is a model that emphasises the importance of resources in achieving…

Q: The abbreviations W and NW represent War and No War, respectively. Iraq NO WMD WMD UN Do not Do not…

A: A pure strategy refers to strategies in game theory. Each and every player is given a set of…

Q: value of the land. The more planes that fly, the lower is the amount of profits that the developer…

A: Airports total profit = 48X - X2 Developers total profit = 60Y - Y2 - XY

Q: In the attached graphic, the slope of the PPF between J-20 and J=30 is Graphic for Q4 to Q6 10 O-2…

A: Coordinates:J = 20, y-axis value = 34J = 30, y-axis value = 32 Changes:ΔX (change in J) = 30 - 20 =…

Q: Increases in carbon dioxide in the Earth's atmosphere have been cited as a probable cause of global…

A: The steady-state refers to a situation where the stock of carbon dioxide (y) in the Earth's…

Q: N=2 video broadcasting websites, You and Twi, must decide the number of minutes of ads to be…

A: Given demand function Q(ty)=10-2tY+tTQ(tt)=10-2tT+tStreaming one vidieo cost of…

Q: Explain how COVID-19 pandemic has impacted each of the 5Es of macroeconomics in all countries of the…

A: The 5 E’s of economics that is highly affected due to the covid-19 situation in the world are the…

Q: The graph on the next page shows the Edgeworth box, and indifference curves, for two people, Matthew…

A: The diagram given in the question is as follows,

Q: Exercise 1.12. Consider the following game. There is a club with three members: Ann, Bob and Carla.…

A: Game theory is a mathematical discipline commonly applied to the analysis of interactive strategic…

Q: A local school administrator observes an increase in the number of flu cases in the public schools…

A: Externality refers to the external cost and benefits that are imposed on third parties without their…

Q: The unemployment rate in the U.S during during the Covid-19 pandemic is estimated to have reached…

A: The pandemic situation forces many governments to execute lockdown for several months. Since many…

Q: Your own a chocolate producing company which can advertise on both television (T) and internet(I).…

A: The optimum choice of any consumer is based on the utility preferences and the budget constraint of…

Q: P* Pw Pdump P S In the graph above, Pw=29, Pdump=17, Q1=6, Q2=9, Q3=13, Q4=20, Q5=22. Germans are…

A: Pw = 29,PDump = 17Q1 = 6Q2 = 9Q3 = 13Q4 = 20Q5 = 22

Q: 3. The lockdown policy Since Dec. 23th, Xi'an has implemented a strict lockdown policy to combat a…

A: As we know the corona cases was increasing and many countries are imposing strict lockdown in their…

Q: Two countries the US (U) and Fiji (F). Each country i E {U, F} can decide whether to impose a…

A: In the given model, each country cares about three things: (1) how much net profits their…

Q: USA/Fiji No-Tax Tax No-Tax (10000,-99989) (10100,-89990) Tax (9900,-9989) (10000,10) a. Only the US…

A: Introduction A pure Nash Equilibrium is a situation in a game where no player can improve their…

Question

kai.3

9. There are two types of residents in a city: 70% low-income residents and 30% high-
income residents. The government is considering two projects with same costs. If project
A is taken, each low-income resident can save his transportation cost by $1,000 and each
high-income resident can save his transportation cost by $750. If project B is taken, each
low-income resident can save his transportation cost by $800 and each high-income
resident can save his transportation cost by $1,350.
If money is more important to low-income people than to high-income people, which
project is better?
Let the weights assigned to benefits and costs of low-income and high-income residents be w and 1,
respectively. What values of w make project A better?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: State the given information

VIEW

Step 2: Evaluate which project is better if money is more important for low income people

VIEW

Step 3: Calculate the Net Benefit from each project

VIEW

Step 4: Compute which values of w make project A better

VIEW

Solution

VIEW

Step by step

Solved in 5 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

I'm waiting for the answer desperately It's in environmental economic textbook, kolstad.
Exercise 1.12. Consider the following game. There is a club with three members: Ann, Bob and Carla. They have to choose which of the three is going to be president next year. Currently Ann is the president. Each member is both a candidate and a voter. Voting is as follows: each member votes for one candidate (voting for oneself is allowed); if two or more people vote for the same candidate then that person is chosen as the next president; if there is complete disagreement, in the sense that there is exactly one vote for each candidate, then the person from whom Ann voted is selected as the next president. (a) Represent this voting procedure as a game frame, indicating inside each cell of each table which candidate is elected. (b) Assume that the players' preferences are as follows: AnnAm Carla Ann Bob, Carla Bob Ann, Bob Carla Ann Caria Carla. Using utility values 0, 1 and 2, convert the game frame into a game. (c) Apply the IDWDS to the game of part (b). Is there a weak iterated…
1. Consider the following conversation.CHAD: “None of the COVID-19 vaccines in Canada has full Health Canadaapproval, and if you get injured from the vaccines, then the pharmaceutical companiesare not liable. Furthermore, the vaccines do not prevent against the spread ofcoronavirus, though they may reduce symptoms. However, their efficacy wanes aftera few months.”VIRGO: “Vaccines have helped humanity to conquer diseases like tetanus andsmallpox. Why are you saying that vaccines don’t help at all?”Which logical fallacy does Virgo commit?(A) Argument from authority.(B) Ad Hominem.(C) Post Hoc Ergo Procter Hoc.(D) Straw Man.
Y/L₁ A B с APF₁ APF₁ .HK/L Using the above diagram, fill in the space below with the correct movement described in the scenario below: **If it is A to C put AC, if it is C to A put CA, if it is A to B put AB, if it is B to A put AB** Scenario: In Budapest, it was decided that they would spend more government money on building more schools and providing adequate primary education. The best way to show this specific change is
What might happen to alligators in the south if the U.S. Fish and Wildlife Service were to reduce or eliminate the tags required to hunt alligators?
A populous country's total greenhouse gas emissions may be relatively large even if its per capita emissions are relatively small. (China is the example the book uses to illustrate this phenomenon) True/False
The blue curve on the following graph shows the tradeoff between security and tourism; that is, combinations of security and tourism above the blue curve are not possible, and those on or below the curve are possible. The vertical axis measures security, defined as the probability that a terrorist is intercepted before entering the country. The horizontal axis measures the number of yearly visitors to the United States, in millions. Suppose that before 9/11, there were 55 million visitors per year, and the probability of intercepting any particular terrorist at customs and immigration was 10%, as indicated by the purple point (diamond symbol). After the 9/11 attacks, a debate is held in Congress. Members of both parties agree that security measures need to be improved. However, there is some disagreement as to how much additional security is needed. Suppose the first bill that is introduced mandates that security be improved so that the probability of catching a terrorist at the border…
3
(1) Pass me the water! An African family that consumes W gallons of water every year, more or less the same amount every day. The price of water is Pw dollars per gallon. The water is in a store located far away, so they go to the store and purchase large amounts of gallons which they store in their house. Every time they drive their truck to the store to purchase water they use up gallons of gas. The price of gas is P Let m be the average amount of water gallons they have in the house (m stands for mean) and M be the VALUE in dollars of those gallons. 1. Imagine that the family decides to go to the store to buy water once a year. How many gallons will they purchase? What is the average amount of gallons they will have stored in the house? How many dollars will those gallons be worth? 2. What if the family decides to go to the store twice a year? What is m in this case? What is M if the family decides to go to the store N times? The family has access to a bond market. All the dollars…
One of the principles of economics is that people respond to incentives. Using this principle, discuss how a tax imposed on people who refuse to get vaccinated against COVID-19 virus affects the national level of vaccination coverage.