(a) (b) What is the slope of Douglas' indifference curve at the point (x₁, x2)? If Douglas' budget line is tangent to his indifference curve at (x₁, x2) what is the ratio equal to? (c) P2x2 When he is consuming the best bundle he can afford, what fraction of his income does Douglas spend on ₁? 3x1 P2 Solution: a) His MRS is – 32. b) At the optimal bundle we have, -MRS = P1. Therefore, we have 11 = 2/3. c) Solving for Douglas' demand for each good 3m 1. Therefore, P2I2 2m 1 and ₂: = = 2+3 pi 2+3 p2 in terms of income and prices, we have t he spends 2/5th's of his income on good 1 and 3/5th's on good 2.

Q: c. How much total consumer surplus will each of them receive at a price of $32?

A: Last parts C and d are answered below:

Q: Laws and rules governing searches and seizures by the police or other government agents stem from…

A: Hi! thank you for the question, Since you have asked to respond to A, B, and C. But only B question…

Q: Can you explain donut economics

A: Economics: It describes the interaction of people with value.

Q: A Fun-Size bag of M&M's contains 4 green, 3 red, 2 yellow, 3 orange, 4 blue, and 2 brown candies.…

A: Introduction: Probability is the state of being able to do something. It's a field of mathematics…

Q: Explain the market system and the command system with a chart?

A:

Q: Why are big baks dangerous?

A: I think Baks should be Banks*.   The reality there are ordinarily undeniably more expenses related…

Q: Why might customer satisfaction be a more appropriate objective than profitability?

A: Customer satisfaction can be considered a more appropriate goal than profitability in certain…

Q: What are the answers to parts d-f of this problem?

A:

Q: What does Adam Smith use “pins” to illustrate? Why is this important?

A: Classical school of thought believed in the automatic correction of the market, any disequilibrium…

Q: Is the sentence above is it true or false?

A: Utility refers to the total amount of satisfaction derived from the consumption of a good or…

Q: terms of economics, what is the significance of the following quote? “On the next exam, I made the…

A: This is the quote which is taken from the book "Misbehaving" by Richard Thaler. The idea of the…

Q: how do i put this question in exel?

A: Market equilibrium: At the market equilibrium demand equals supply. Or at market equilibrium point…

Q: What are concerns that some people have with the use of consumer decision nudges by governments?

A: The study of consumer behavior explains how individuals choose what products and services to buy,…

Q: What is underemployment

A: Underemployment is the measurement of the economy's jobs and labor efficiency. It explores how…

Q: hy cannabis prices in Colorado declined sharply within four years, with reference to diagram

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: What is the profit potential?

A: Profit potential is the difference between the expected revenue and the overall cost of the product.…

Q: So, in both cases, the chef would be doing the baking and cooking?

A: The theory of comparative advantage is based on opportunity cost.