Assume the following behavioral equations for a macroeconomy: C = 100 + .9Yd ,I = 50, T= $100 and G = $40 from the above behavioral equation the disposable income is Select one: O a. $900 O b. 0 O c. $1000 O d. None of the option
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Assume the following behavioral equations for a macroeconomy: C = 100 + .9Yd ,I = 50, T= $100 and G = $40 from the above behavioral equation the disposable income is Select one:
O a. $900
O b. 0
O c. $1000
O d. None of the options
Answer to the question is as follows :
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- Assume the following behavioral equations for a macroeconomy: C = 100 + .9Yd ,I = 50, T= $100 and G = $40 from the above behavioral equation the Equilibrium level of output is Select one: O a. $1000 O b. $1100 O c. None of the options O d. $900QUESTION 6 Which of the following was insight regarding optimal pricing that we gleaned from behavioral economics? O Make costs lump sum (integrate the costs into one cost) and separate allof the benefits of a purchase (separate the gains from an exchange). O Consumers always act rationally in their consumption decisions. O Expectations about products' prices don't matter for consumer behavior - all that matter's is the price they actually face, O Default choices for consumers don't matter for their behavior. QUESTION 7 Which of the following are the conditions for a firm to be able to profitably engage in bundlhpg?. O There is variation in consumers' willingness and abilities to pay for the goods, and consumers' valuations of the goods are positively correlated. O Consumers must like the bundled goods relatively equally. Consumers' preferences across the goods are relatively consistent with each other. O There is variation in consumers' willingness and abilities to pay for the goods,…ayesha derives utility from travelling and outdoor dinning o weekends as given utility function U(t,d)=TD.the price of a day spent travelling is $160{Pt=160} and price of dining outdoor $200{Pd=200}.ayesha annual budget for this is $8000. find ayesha's utility maximizing choice of days travelling and dining outside. and alsoo find uutility level from consuming that bundles .show findings graphically
- Refer to the information provided in Figure below to answer the question that follow. O O O Total utility 28 25 15 0 1 2 3 4 Number of movies rented per month Refer to Figure The total utility of the three movies is utility of the third movie is Select one: a. 0; 0 b. 25; 10 c. 28; 3 d. 15; 0 and the marginalstion 20 "When you refuse to drink one more cup of coffee, you are making the statement that the marginal utility of this additional cup is:" O Positive but increasing O Positive but decreasing O Negative O ZeroA consumer has a utility function U(X,Y ) = X1/2 Y1/2 . Prices of the goods are pX = £10 and pY = £5, respectively, and the consumer has income M = £200 to spend on X and Y. Currently, she buys 2 units of good X and spends the rest of her income on good Y.a) Determine this consumer’s current utility level. b) Computetheconsumer’smarginalutilitiesofgoodsXandY. c) Explain why the consumer’s current consumption of goods X and Y is not optimal. Should she substitute X for Y or vice versa? The consumer’s marginal rate of substitution is MRS = Y/X.d) Determine this consumer’s optimal consumption of both goods. e) By how much does the consumer’s utility increase when she consumes the optimal bundle?
- Consider the following chart. What is the marginal utility per the price for the fourth unit of Chicken Fajitas? The price of a Chicken Fajita is $10. Quantity of Chicken Fajitas (1) 0 2 3₂ 4 5 6 7 O a.) +14 utils per dollar O b.) 1.9 utils per dollar Oc.) +1.0 utils per dollar d.) +16 utils per dollar Total Utility (2) 0 25 48 67 81 89 90 83 Marginal Utility (3) 25 23 19 8 1 -717) A ssume a consumer has $40 to spend and for both products the marginal utilities are shown in the following table: Quantity MU MU 1 35 80 2 20 40 3 12 18 Assume that each product sells for $10 per unit. a) How many units of each product will the consumer purchase? b) Assume the price of product B rises to $20 per unit. How will this consumer allocate her budget now? c) If the prices of both products rise to $20 per unit, what will be the budget allocation?1. A standard model of choice under risk is Expected Utility Theory (EUT) in which preferences over lotteries that pay monetary prizes (x₁, x2, ..., xs) with probabilities (P1, P2, ..., Ps) with Eps = 1 are represented by the function L S (a) What does it mean to say that a function represents the consumer's prefer- ences? Σpsu(xs) Choice 1 8=1 (b) State and briefly comment on the axioms required for the EUT representation. (c) Consider the following experiment of decision making under risk in which sub- jects are asked which lottery they prefer in each of the following two choices: Lottery B 0 with prob. 0.01 10 with prob. 0.89 50 with prob. 0.10 Lottery D Choice 2 Lottery A 0 with prob. 0 10 with prob. 1 50 with prob. 0 Lottery C 0 with prob. 0.90 10 with prob. 0 50 with prob. 0.10 Suppose that the modal responses are Lottery A in Choice 1 and Lottery D in Choice 2. Assume that utility of zero is equal to zero and illustrate why it is not possible to reconcile these experimental…
- Please no written by hand and no emage Consider a consumer that consumes 2 teaspoons of sugar with each cup of coffee. For each cup of coffee with sugar the consumer gains 10 utils.a) Write down the utility function that gives the total utility if the consumer consumes S teaspoons of sugar and C cups of coffee. The consumer has assigned £7 per week to be spent on drinking coffee with sugar. The current price of coffee is £0.50 per cup and each spoon of sugar costs £0.10. b) Calculate the optimal weekly consumption bundle for this consumer.c) Does the consumer view C and S as complements or substitutes?Suppose the consumer's utility function is given by U(x,y) = X3/5y2/5, and the exogenous variables are given by M = 500, Px = 5, and Py = 4. Price of y changes to Py = 2. What is the income effect ony?O A.-14.53O B. +14.53O C. +24.21O D. +25.79O E. None of the aboveSuppose the consumer's utility function is given by U(x,y) = X3/5y2/5, and the exogenous variables are given by M = 500, Px = 5, and Py = 4. Price of y changes to Py = 2. What is the income effect ony?O A.-14.53O B. +14.53O C. +24.21O D. +25.79O E. None of the above Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.