For number 1 and 2 assume an individuals Utility function is given by: 1/2 U(q1, q2) = q₁ q₂ 1. Suppose Melissa has $14 to spend on bundle of good #1 and good #2. If the price of good #1 is $2 (p1=2). How much of good #1 will be demanded of Melissa? 2. If the price of good #1 (p1) increases by 1% but income (y) stays the same, which statement must be true? A.The individuals total expenditure of good #1 will increase B. The individuals total expenditure of good #1 will decrease C. The individuals total expenditure of good #1 will remain the same D.There is not enough information to say how the individuals expenditure on good #1 will be affected

Q: 3. The terms Federal Reserve Banks and commercial banks can be used interchangeably. A. True B.…

A: In the United States, Federal Reserve refers to the Central Bank or the highest monetary authority…

Q: 2. Comparative and absolute advantage Loc and Ashima are farmers. Each one owns an 18-acre plot of…

A: Production possibilities frontier shows different combinations of two goods that can be produced…

Q: suppose Scotland produces only pressure cookers and air fryers. The that are used in the production…

A: The PPF represents all those possible production bundles of two products an economy can produce when…

Q: MC ATC AVC MR 0. 200 300 360 Nurmber of Baldutn High Schoolyearboolo Figure 10.5 How much will this…

A: A monopoly is a sole producer of a good in the market thus acting as a price maker whereas in a…

Q: In an ongoing price war between Burger Haven (locally owned) and MacArches (a chain), both…

A: Lets construct a payoff matrix : There are two players / restaurant managers; MA and BH R options…

Q: choices for the highlighted question is  4 sandwiches, 11sandwiches ,15 sandwiches ,18 sandwiches…

A: A marginal product is an additional unit of input employed. it can be calculated by a change in…

Q: During World War I and World War II, the U.S. government spent large sums of money on the war…

A: inflation is the rise in general price level of goods and services  over period of time . Inflation…

Q: How to answer questions 2,3 and 4?

A: Desclaimer - As you posted multiple questions, we are supposed to solve first question only unless…

Q: = 0.1), 2. Suppose that the depreciation rate is 10 percent per year (8 = el tsda boinoq Tag O< sti…

A: In economics, a production function is a mathematical relationship that shows the maximum amount of…

Q: Suppose Pizza (P) and Hamburgers (H) are perfect substitutes to Kate. Two slices of Pizza always…

A: Given  Pizza (P) and Hamburgers (H) are perfect substitute  and utility from 2 slices of Pizza =…

Q: Following question 11, what is the Nash equilibrium of this game under a rule of no liability? a) I…

A: Nash equilibrium is a part of game theory, it is a equilibrium at which none of the parties involved…

Q: Question 5 Contra Costa College purchases an old building for admiration work. Included in GDP. Not…

A: GDP refers to the value of goods and services that are produced within the economy in the given year…

Q: Suppose a monopolist has the following cost function C(Q) = 40Q (with marginal cost MC = 40).…

A: Under the monopoly market, the firm maximises its profit when the marginal revenue is equal to the…

Q: 1. Below is a graph of the market for gram of legal recreational cannabis in MA. What is the…

A: Answer to sub parts 4,5 and 6 are as follows: Equilibrium is a point where the market demand curve…

Q: In each of the following markets find the market equilibrium. Calculate consumer surplus, producer…

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question (question 9…

Q: 3-16 We know that a certain piece of equipment will cost $275,000 in 6 years. How much must be…

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…

Q: ion 8 (Utility). Suppose a consumer's utility function is given by U(x₁, x2)=X₁*X2 a) Draw an…

A: Introduction An indifference curve (IC) is a mathematical representation of a collection of products…

Q: The demand equation for the Roland portable hair dryer is given as follows where x (measured in…

A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…

Q: output and multiply by the price of output.) Widgets Gizmos and prices for years 2006 and 2007.…

A: The GDP deflator is a tool to estimate the prices for domestically produced final goods and…

Q: 1. Suppose the GDP deflator in 2000 is 105, and the inflation rate between 1999 and 2000 is 5%. In…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: $4 D3 D D2 Number of pizzas per month Figure A 1. Refer to Figure A. The movement from point A to…

A: Demand curve shows inverse relationship between price and quantity demanded

Q: Complete the following table by using the previous graphs to determine the values of consumer and…

A: Consumer surplus, Producer surplus and deadweight loss is important concept of microeconomics…

Q: (d) What is the maximum the agent will pay for insurance? Show your work. Note that insurance here…

A: Part D)   The maximum the agent will pay for insurance is equal to the expected loss, because this…

Q: 3. Opportunity Cost Becky and Eileen are roommates. They spend most of their time studying (of…

A: Absolute advantage refers to the ability of the country to produce good with less labor hours than…

Q: 2. A farmer's fields are right next to the train tracks, where sparks from the trains set the field…

A: In part2, only information is given about the profit of railways from running 1, 2, 3 trains and…

Q: An externality arises when a firm or person engages in an activity that affects the well-being of a…

A: In a market, two types of externalities are positive and negative that depends upon the effect of an…

Q: 4. Producer surplus PS is a. $128 b. $129 c. $130 d. $131 5. Total surplus TS is a. $221 b. $222 c.…

A: “Since you have posted a question with multiple sub-parts, we will solve the at most three sub-parts…

Q: A small economy increased its capital per hour worked (K/L) from $40,000 to $50,000. As a result…

A: Real GDP is  a economics live of the worth of economic output that has been adjusted for value…

Q: According to the AD-AS model, which of the following would happen as a result of a negative supply…

A: Supply shock is situation where there is sudden increase or decrease in availability of goods more…

Q: The creators of cryptocurrencies have often positioned themselves as the advocates of individuals…

A: Cryptocurrencies: These are the digital assets that are being used as a medium of exchange of change…

Q: Which of the following is a correct description of the crowding-out effect of deficit spending? The…

A: When government raises its expenditure by 100 in order to increase output, it leads to a rise in the…

Q: 3. Use the elasticity formnula as you solve the following issue related to a prot OM-IP just over a…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The following table contains data for a hypothetical closed economy that uses the dollar as its…

A: Gross domestic product (GDP) is a monetary proportion of the market worth of the relative multitude…

Q: 24 MC ATC MR 20222426 Units of output Figure 10.3 In looking at this diagram, the profit maximizing…

A: A monopoly is a sole producer of a good in the market thus acting as a price maker whereas in a…

Q: 1. Which of the following is not a component of the neoclassical economic model? a) Profit…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Consider a town in which only two residents, Nick and Rosa, own wells that produce water safe for…

A: The monopolist operates in the monopoly market where a single seller of the goods sells the goods in…

Q: In October 2018 Canada agree to open the dairy market to US producers as part of the new NAFTA…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: The diagram to the right shows a market in which a price floor has been imposed. Identify the…

A: Price floor is the minimum price below which a price can not fall. It is mandated by the government.…

Q: 1. For each of the following three utility functions below, find the demand function by explicitly…

A: A monotonic transformation is a method of converting one set of numbers into another set of numbers…

Q: All 100 consumers are alike and each has a demand curve for a monopolist's product of q= 5-0.5p. The…

A: A monopolist charging a two part tariff for its goods or services provided charges a price per unit…

Q: Answer incorrect on August 1, 2012, the price of Walmart stock was $70.88; on March 1, 2013, it was…

A: Given that, Price in August 1, 2012 = $70.88 And Price in March 1, 2013 = $73.93

Q: 1. Saving and investment in the national income accounts The following table contains data for a…

A: There is no graph needed. No graph is given in the question. --------- At equilibrium, Y = C + I + G…

Q: The blue curve on the following graph represents the demand curve facing a firm that can set its own…

A: Total revenue in economics means the total amount of money earned by a firm from the sale of its…

Q: 11. Theory and Evidence: "Prices gouging" is the practice of raising the price of essential goods…

A: A fundamental model in economics is the supply and demand framework, which explains how prices are…

Q: Plot the following points from a demand and supply schedule on a demand and supply graph. Label each…

A: Demand represents the volume of goods and services that the consumers are willing to buy at…

Q: chat gpt answer not req

A: In the case of positive externality, the external benefits can be calculated by subtracting private…

Q: Price Level PL3 PL2 Expected inflation rate PL₁ Actual inflation rate Unemployment rate Natural Rate…

A: The Phillips curve is a concept in macroeconomics that shows the relationship between inflation and…

Q: "A Ford car contains about five thousand parts-that is counting screws, nuts, and al. Some of the…

A: Supply for a good refers to the number of units of the good that a producer is willing and able to…

Q: 5. The slope and position of the long-run aggregate supply curve Suppose the Fed doubles the growth…

A: Changes in the money supply have only nominal effects in the long run. Only price and inflation are…