Presented below in the table are the average household weekly expenditure ($) on the selected major commodity groups and the total household expenditure on all goods and services by the age of head of households' in Australia in 2015-16. Using the information provided, choose any two commodity groups to analyze the patterns of consumption of these commodity groups by households at different stages of the life cycle. You are expected to apply appropriate concepts and calculate appropriate indicators of consumer preferences in your analysis. Your response should be no more than 200 words, excluding calculations. Current housing costs Alcoholic beverages Average household weekly expenditure (S) by age of household heads 15-24 25-34 35-44 45-54 55-64 303 379 31 22 399 21 307 11 65+ 225 132 29 20 All Households 279 23

Presented below in the table are the average household weekly expenditure ($) on the selected major commodity groups and the total household expenditure on all goods and services by the age of head of households' in Australia in 2015-16. Using the information provided, choose any two commodity groups to analyze the patterns of consumption of these commodity groups by households at different stages of the life cycle. You are expected to apply appropriate concepts and calculate appropriate indicators of consumer preferences in your analysis. Your response should be no more than 200 words, excluding calculations. Current housing costs Alcoholic beverages Average household weekly expenditure (S) by age of household heads 15-24 25-34 35-44 45-54 55-64 303 379 31 22 399 21 307 11 65+ 225 132 29 20 All Households 279 23

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Juanita lives in New York City and enjoys drinking lattes and eating scones. The price of a latte is held constant at $4 throughout this problem. On the following diagram, the purple curves (I₁ and I2) represent two of Juanita's indifference curves. The lines BL₁ and BL2 show two budget lines. Points X and Y show Juanita's consumer equilibriums subject to these budget lines. QUANTITY OF LATTES 20 18 16 14 6 4 2 0 0 2 4 6 8 10 12 14 QUANTITY OF SCONES BL₁ 16 18 20 Given the previous graph and knowing the price of a latte is $4, Juanita's budget is $ ?
Assume: 1) Two goods only: Good X and Good Y 2) Two (groups of) individuals: Individual A and Individual B 3) Utility function of Individual A: UA(Xa, Ya) = 300X4 –÷X + YA 4) Utility function of Individual B: Ug (Xg, Yg) = 100XB –÷Xỉ + Yg en = (ež, e%) = (150,20000) eg = (ež,e%) = (400,0) 5) Endowment for individual A: 6) Endowment for individual B: Write down and explain market clearing conditions, budget constraints and optimization conditions for the two individuals.
Consider the household model that you have seen in class but now assume that the goal of the household is to consume twice as much in period 2 as in period 1. She earns $100 in the first period and $150 in the second period. The interest rate is 5%. What is her optimal saving in the first period? Note: Type in your answer approximated to two decimal points, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were entered incorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard will automatically delete it and you should not do anything about it.
Q2: Let a consumer’s daily hours of work is denoted by H, and hours of leisure by L. Consumer has no other source of income except wages for hours worked. She consumes what she earns each day. Her utility function is U(C, N) = ln(C) + 3 ln(N) Where C stands for the dollar amount of her consumption. Now answer following questions (a) Suppose the wage rate is 50Rs. per hour. Write down the consumer’s utility function and budget constraint with C and H as the choice variables. (b) How many hours will she choose to work, and what will be the resulting utility?
Please refer to the following information to answer the question (in bold) below: • You have $400 allocated for your monthly food budget. • You can either purchase meals at a restaurant (R) or buy groceries (G) to prepare food at home. • The price of restaurant meals is $8/meal (PR= $8). • The price of groceries is $2/pound of food (PG= $2). Suppose that the price of restaurant meals rises to $10/meal (PR = $10). Choose the answer below that best characterizes the accuracy or inaccuracy of the following statements: A. If we assume that restaurant meals are the vertical axis good, the increase in PR flattens the slope of the budget constraint. B. Compared to when PR $8, the y-intercept of the new budget constraint is larger in value. C. Relative to when PR = $8, the consumer can now buy more groceries for each restaurant meals she or he forgoes purchasing. D. The affordable set when PR = $10 includes more bundles than when PR = $8. Statements A and B are True, C and D are False…
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Q3. Consider a utility function with one consumption good q1 and one type of leisure q2 c) Show mathematically and diagrammatically the decomposition of totaleffect.
what is the budget line for consumption and leisure if a person faces a constant wage of $5 per hour , there are 168 hours in the week to work,and she received non-labor income of 200 per week
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