A consumer has $220 in monthly income to be spent on two goods Z and B.The price of good Z (P,) is $7.00.The Marginal Rate of Transformation (MRT) is equal to - 2. That is 2 units of good B can be traded for 1 unit of good Z.What is the price of good B? $ (round your answer to the nearest penny).ост15MacBook Air80escF1F2F3F4F5F6F7C@%232$&247QWRYtabASDos lock1< CO

Marginal rate of transformation is an economic measure to express the trade-off between the two…

Answered: A consumer has $220 in monthly income…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

Substitutions for goods cannot always be made. Which of the following is an example of a good that cannot be substituted with another good? gasoline jeans cow's milk cranberry juice
Suppose the utility function for goods x and y is given Utility = U(x,y) = xy +y Suppose price of both x and y is $1. You have total $10 to spend. Suppose price of x changed to $0.5. Price of y and your disposable income remain the same: a. calculates the change in the amount of good x, that is caused by the substitution effect (the effect on consumption due to a change in price holding real income or utility constant). b. calculate the change in the amount of good x, that is caused by the income effect (the effect on consumption due to a change in real income caused by a change in price).
Suppose that a decrease in the price of X results in less of good Y sold. This would mean that X and Y are A) complementary goods. B) substitute goods. C) unrelated goods. D) normal goods
Julian is interested in only two goods: good X and good Y and has M dollars to spend (and always spends it all). His uncle Paul is rich and he offered him 1000 dollars as a present but Julian did not take it and chose to just spend his own money. Julian's demand function for good X and the demand function for good Y are given respectively by XJ = 32800/(10Px + Py) and Y₁ = 3280/(10Px + Py). What is Julian's spending money "M"?
a) Explain by using an example why an MRS (Marginal Rate of Substitution) between two goods must equal the ratio of the price of the goods for the consumer to achieve maximum satisfaction?
Assume PX = $3 and PY = $6 and income = $30. What is the relative price of an additional unit of good X in terms of the amount of good Y that has to be given up? 3 5 6 2
Ben gets utility from apples and bananas and his preferences can be represented by the utility function U(A,B)=4A+B. If the price of apples is 3 times the price of bananas, what is Ben's ordinary demand function for apples, A*(p A, P B, I)? OA (P A, PB, 1)=0 A*(p A, P B, 1)=1/P A OA (P A, PB, 1)=21p A OA (P A, PB, 1)=1/(3p A) O A*(p A, P B, 1)=1/(4p A
Assume that bob has a Cobb Douglas utility function U (F,H) = A F^0.7 H^0.3 over Food F and Housing H. How much does Bob spend on Housing and Food when the price of Housing is 10$ and income is 200 ?
Suppose your income is 200, the price of good x is 2, and the price of good y is 3. You know that your utility function is U= 2(xy)^3. (A) What amounts of x and y do you choose? (B) Can you generalize your choices to demand curves for x and y for any prices and income?
Based on Nick's willingness to sell, plot his supply curve as a step function on the following graph using the orange points (square symbol). Be sure to plot your first point at (0, 0). Price of Water 10 9 100 8 7 8 10 3 2 1 0 0 2 3 Quantity of Water Suppose the price of a bottle of water is $4. In this case, Nick receives $ 5 If the price rises to $6, Nick now sells Nick's Supply Price = $4 Use the black line (plus symbol) to draw a price line at $4. Next use the grey point (star symbol) to indicate how many bottles of water Nick will produce and sell at that price. Finally, use the purple point (diamond symbol) to shade the area that represents Nick's producer surplus. bottles of water. This Quantity Sold Producer Surplus in producer surplus from his water sales. his producer surplus to $
Suppose that you, Jennifer, and Yusef constitute the market for CDs. Your demand for CDs is illustrated in the graph to the right (D₁), along with Jennifer's demand (D₂) and Yusef's demand (D3). Using the line drawing tool, construct the market demand curve for CDs. To do this, you will need to use three line segments labeled Dsegment 1 Dsegment 2, and Dsegment 3. Carefully follow the instructions above, and only draw the required objects. COLLE Price of CDs 307 284 26- 24- 22- 20-0₂ 184 16- 14- 12- 10- 84 64 44 NA 2- 0- 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Quantity of CDs (0,28) Q OU
Floyd's utility function is given by U(X,Y)=2XY. MUx=2Y and MUy-2X. The price of good X is Px=2, while the price of good Y is Py = 1. Floyd's income is 1,000. Which of the following is true given that the price of good X falls to 1? The substitution effect for good X results in an increase of X consumption by about 1,043 units and a decrease in Y consumption by about 14 units. The substitution effect for good X results in X consumption of about 250 units. The substitution effect for good X results in X consumption of about 500 units. The substitution effect for good X results in an increase of X consumption by about 250 units and no change in Y consumption.

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