Explain the First Theorem of Welfare Economic and theSecond Theorem of Welfare Economic.Please relatethese two theorems.

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Q: Suppose that Elif spends her income on shoes and outfits. The price of a shoe is 100/unit and the…

A: Utility is maximized when (MUs/Ps) = (MUo/Po) where S: Shoes and O: Outfit, and MU = Change in TU /…

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A: Utility is the wants satisfying power of a good or service. Total utility is the total amount of…

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Q: our marginal benefit from eating candy bars is shown in the table below: Marginal Benefit Candy (MB)…

A: The change in total utility or benefit when one additional unit is consumed is known as the marginal…

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A: In utility theory, the Lagrange function plays a vital role in solving optimization problems under…

Q: In Zambia which type of utility theory do we mostly apply. Use practical examples

A: Zambia is a landlocked country in southern Africa- a developing country.

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A: Production Possibility Frontier is the locus of points of production combination which an economy…

Q: Consider an exchange economy with two consumers, Jack and Blue, who trade only two goods: Cookies…

A: Pareto optimality is a concept in economics that refers to a state where it is not possible to…

Q: Explain the cardinal and ordinal utility approach ?

A: Utility: Utility is the wants satisfying power of goods or services; in other words, utility is the…

Q: 1. Graph and Explain the meaning of Edgeworth box.

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Q: Jacob receives an allowance of $8 per week. He spends all his allowance on ice cream cones, $0.50…

A: A budget line depicts the combination of two goods that a consumer can afford, given the prices of…

Q: Explain substitution and income effect by citing an example

A: Substitution and income effect are the two components of price change in the market.

Q: a. State and explain the First Theorem of Welfare Economics and discuss its economic implications…

A: Production possibility shows how much economy can produce if it operates at full capacity.

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A: Comparative advantage depends on the lower opportunity cost of production of a good. The opportunity…

Q: Let's suppose that an individual prefers bundle of goods A over another bundle of goods B. Let's…

A: Individual prefers:Bundle of goods A over bundle og goods BBundleof goods A>Bundle of goods…

Q: 1. In your own idea, differentiate substitution effect from income effect. Give atleast 2 examples…

A: Basis for comparison Income effect Substitution effect Meaning It means change in the demand for…

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A: 21) Given the marginal utilities and prices, the maximum utility would be attained when  MUf/Pf=…

Q: Mitch raises chickens and sells eggs at the local farmer's market on Saturday mornings. A change in…

A: Here, it is given that Mitch raises chicken and sells its eggs at the local farmer's market.

Q: 6. Who proposed Revealed prefere A. Wilfred Pareto B. J. Hicks C. Paul A. Samuelson D. All of the…

A: The rationality of customers is the underlying presumption of revealed preference theory. In other…

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Q: Please read the article: Utility of Marriage 1. What is the law of diminishing marginal utility? 2.…

A: Please read the article: Utility of Marriage 1. What is the law of diminishing marginal utility? 2.…

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A: The amount that is given up in exchange for something else is known as the opportunity cost, or…

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A: The diagram shows several curves, with the horizontal axis measuring the quantity of a good and the…

Q: b. State and explain the Second Theorem of Welfare Economics and discuss its economic implications…

A: A subfield of economics called welfare economics uses microeconomic methods to assess overall…

Q: Consider a simple economy with two individuals (A and B) and two goods (x and y).  Can you please…

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Q: Second Fundamental Theorem of Welfare Economics a. Describe the theorem, making sure that you define…

A: Welfare economics is the study of finding optimal allocations of various resources that maximize the…

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A: Edgeworth boxes refer to the boxes that are a useful tool when considering the trade of 2 finite…

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A: Note: Since you want us to solve only subpart (e), we will solve the subpart (e) for you. To get the…

Q: Below is a table that represents Dominic's marginal utility gained from eating Reece's peanut butter…

A: Marginal benefit refers to the extra benefit a consumer gets from the consumption of one more unit…

Q: what is the reason for decomposing total effect into substitution and income effect?

A: Total effect refers to the total price effect. Price effect means when there is a change in price,…

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A: Consumer preference are the choice for commodities or consumption which consumers make. The choices…

Q: et say we have 2 good ) then for that situation if we buy good A

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A: Indifference Curve is defined as a curve which shows a combination of two goods which gives a…

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A: A budget constraint depicts the combination of two goods that can be afforded by a consumer given…

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A: Consumer preference Theory The underlying foundation of demand, therefore, consumer preference…

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A: In economics, utility is the satisfaction or benefit derived by consuming a product; thus the…

Q: Moe divides his time between studying Physics and studying Economics. His production possiblemes…

A: (PPC) is a chart that shows every one of the various blends of result that can be delivered given…

Q: Elaborate and explain  income effect in case of inferior goods.

A: In a market, inferior goods are differ from normal good due to differences in the price effect on…