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Explain what is a general equilibrium considering Brouwer’s fixed point theorem
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- Define Consumption Behavior as a microeconomic componentYou own a fast food restaurant and must decide on a pricing strategy for burgers and fries. The market you serve contains equal numbers of 3 types of consumers called "Average", "Burger Buffs", and "Fries Fiends". Each consumer will purchase at most 1 of each food type. Their valuations of the two goods are listed in the following table. Assume for this problem that the costs of production are zero. Consumer Valuations Consumer Types Average Burger Buffs Fries Fiends Burgers $5.33 $12 $3 Fries $8 $3 $11 a. What are the optimal (separate) prices for burgers and fries? b. What is the optimal (pure) bundle price for a meal? Did bundling increase your profits? Explain.M10
- Malaria Eradication Back on the Table In response to the Gates Malaria Forum in October 2007, countries are debating the pros and cons of eradication. Dr. Arata Kochi of the World Health Organization believes that with enough money malaria cases could be cut by 90 percent, but it would be very expensive to eliminate the remaining 10 percent of cases, so countries should not strive to eradicate malaria. Make a graph with the percentage of malaria cases eliminated on the x -axis and the marginal cost and marginal benefit of driving down malaria cases on the y -axis. On your graph: (i) Draw a marginal cost curve and marginal benefit curve that are consistent with Dr. Kochi’s opinion. (ii) Identify the quantity of malaria eradicated that achieves allocative efficiency.Student question Time Left : 00:09:39 5) Quasimodo consumes earplugs and other things. His utility function for earplugs x and money to spend on other goods y is given by ux,y=100x-x22+y What kind of utility function does Quasimodo have? What is his inverse demand curve for earplugs? (Implicitly, the price of money left over for other goods is 1) If the price of earplugs is $50, how many earplugs will he consume? If the price of earplugs is $80, how many earplugs will he consume? Suppose that Quasimodo has $4,000 in total to spend a month. What is his total utility for earplugs and money to spend on other things if the price of earplugs is $50? What is his total utility for earplugs and other things if the price of earplugs is $80? How much does the utility decrease when the price changes from $50 to $80?this question is for homework.
- 2- Answer the following questions: a) Show that Young's Theorem holds for the following function: f(x, y) = 9ye²xy. | b) Let z(x, y, w) = x² + wy +w², where w (r, s) = r² + s²₂ x (r,s) = r² — s² and y (r, s) = r. s. Find the partial derivative 6 =? 6s c) The foreign demand for our exports X depends on the foreign income X and our price level P: 1 X = Y + P-². Find the partial elasticity of foreign demand for our exports with respect to que price level. d) If production function is Q₁ = A(t) K³L, where A(t) is an increasing function of t, and K₁= Ko + at, and L. Lo + bt. Find the rate of change of output with respect to time? = www wwwww.w intim um momwConsider a society consisting of just a farmer and a tailor. The farmer has 30 units of food but no clothing. The tailor has 60 units of clothing but no food. Suppose each has the utility function U=Fc, If the price of clothing is always $1, and the food price is currently $1, then we can conclude O the market is at a competitive equilibrium. the price of food will drop towards a contitive equilibrium. the price of food will increase towards a competitive equilibrium. O None of the above..Jane has 11 liters of soft drinks and 10 sandwiches. Bob, on the other hand, has 9 liters of soft drinks and 10 sandwiches. With these endowments, Jane's marginal rate of substitution (MRS) of soft drinks for sandwiches is 5 and Bob's MRS is equal to 7. Draw an Edgeworth box diagram to show whether this allocation of resources is efficient. If it is explain why. If it is not, what changes will make both parties better off? 1.) Using the three-point curved line drawing tool, draw an indifference curve for Jane when consuming 11 liters of soft drinks and 10 sandwiches. Label this curve Uj. 2.) Using the three-point curved line drawing tool, draw an indifference curve for Bob when consuming 9 liters of soft drinks and 10 sandwiches. Label this curve Uğ. Carefully follow the instructions above, and only draw the required objects. Sandwiches 0₁ Jane 11 Soft drinks Bob OB 10 Q
- Toys Insane Inc. produces two goods: Glibber Gems (G) and Blubber Bricks (B). In order to produce Glibber Gems and Blubber Bricks, three input factors are necessary: Slime (S), Tran (T), and Gorilla Mucus (M). The following table summarizes how many input factors are necessary to produce one unit of each good and how many input factors are available in total: Glibber Gems Blubber Bricks Total Units Available Slime Units 1 2 14 Tran Units 3 4 36 Gorilla Mucus Units 9 6 90 Below graph shows four lines: One for each constraint and an isoprofit line. 1: The slime constraint has which color? a Red b Blue c Green d Black 2: The tran constraint has which color? a Red b Blue c Green d Black 3: The gorilla mucus constraint has which color? a Blue b Red c Black d Green 4: The isoprofit line has which color? a Red b Blue c Green d Black 5: The slime constraint is…The utility possibility frontier is defined as the set of maximum utility levels for all consumers that is feasible in the economy, given resource constraints and preferences. For a two-consumer economy, it is defined formally as the solution to: u (ūB) = max u A (xA) subject to ug(xB) > ūg and (xA, XB)feasible. For each of the economies above, find an equation for the utility possibilities frontier, and graph it.Suppose you are writing an argumentative essay about curfews and want to include the following ideas:Two years ago, the Hayville City council implemented a 10:00 p.m. curfew for residents under sixteen.The Hayville City police department saw no significant decrease in the rate of juvenile-related crime after the curfew was implemented.Which transition should you add between these sentences in order to communicate the relationship between the ideas effectively? Two years ago, the Hayville City council implemented a 10:00 p.m. curfew for residents under sixteen; as a matter of fact, the Hayville City police department saw no significant decrease in the rate of juvenile-related crime after the curfew was implemented. Two years ago, the Hayville City council implemented a 10:00 p.m. curfew for residents under sixteen; however, the Hayville City police department saw no significant decrease in the rate of juvenile-related crime after the…