I need help with both the questions The models of time-inconsistent preferences can be used to explainthe prevalence of low introductory rates on credit card offersthe prevalence of monthly or annual fees in health clubsthe use of rehabilitation centers in treating addictsall of the above Emma maximizes quasi-hyperbolic discounted utilityU (co, C₁, C₂) = Co + ßdc₁ +38²c₂ for ß = 0.5 and 6 = 0.8. Which of thefollowing consumption streams will she choose?OOOCO = = C1 = C₂Co = 5, C₁1 =CO--9, C₁ =1015, C₂Co = 5, C₁ = 10, C₂ = 15=1010, C₂ = 12

Utility means satisfaction. The Discounted utility is the measure of utility from the consumption…

Emma maximizes quasi-hyperbolic discounted utility U(co, C₁, C₂) = Co + ß8c₁ + ß8² c₂ for ß = 0.5 and 8 = 0.8. Which of the following consumption streams will she choose? O O O Co = C1 = C2 = = 10 Co = 5, C₁ = 15, C₂ Co = 5, C₁ = Co = 9, C₁ = 10, C₂ 10, C₂ = 10 = 15 = 12

Emma maximizes quasi-hyperbolic discounted utility U(co, C₁, C₂) = Co + ß8c₁ + ß8² c₂ for ß = 0.5 and 8 = 0.8. Which of the following consumption streams will she choose? O O O Co = C1 = C2 = = 10 Co = 5, C₁ = 15, C₂ Co = 5, C₁ = Co = 9, C₁ = 10, C₂ 10, C₂ = 10 = 15 = 12

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

I need help with both the questions

The models of time-inconsistent preferences can be used to explain
the prevalence of low introductory rates on credit card offers
the prevalence of monthly or annual fees in health clubs
the use of rehabilitation centers in treating addicts
all of the above

Emma maximizes quasi-hyperbolic discounted utility
U (co, C₁, C₂) = Co + ßdc₁ +38²c₂ for ß = 0.5 and 6 = 0.8. Which of the
following consumption streams will she choose?
O
O
O
CO = = C1 = C₂
Co = 5, C₁1 =
CO
-
-
9, C₁ =
10
15, C₂
Co = 5, C₁ = 10, C₂ = 15
=
10
10, C₂ = 12

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