Suppose Jenna and Karen both regard peanut butter and jelly as perfect complements at a 1:1 ratio. Show, using an Edgeworth box diagram, that if Jenna receives 10 peanut butter and no jelly and Karen receives 10 jelly and no peanut butter, after trading, they will each end up with 5 units of each. Note:-
Q: A local restaurant is committed to providing its patrons with the best dining experience possible.…
A: Frequency is the number of times an observation occurs in the data set.Relative frequency is the…
Q: Suppose the own price elasticity of demand for good X is -4, its income elasticity is -2, its…
A: Price elasticity of demand measures the responsiveness of a commodity to a change in its price.…
Q: Yes, I do believe people who disagree in regard to normative ethical theory can still reach an…
A: Diversity and common goals are quite conflicting with each other
Q: A firm has revenue given by R(q) = 160q - 3q2 and its cost function is C(q)…
A: Profit maximization refers to the process of producing the level of output at which the firm will…
Q: Guns (thousands of units) 0 Figure 2-2 A PPF 3 PPF 2 C G Butter (thousands of units) PPF 1 H Refer…
A: The Production Possibilities Frontier (PPF) presents every potential output combination of two items…
Q: In a market the demand curve is given by P = 78 – 3q and supply by P = 3q. What is PS in the market…
A: Find the equilibrium price (PS) in a market with given demand and supply curves.Demand curve: P = 78…
Q: ou choose Italy as a country ,gather information and accumulate Data of its GDP for the past 10…
A: GDP refers to the total monetary value of all final goods and services that an economy produce…
Q: Which of the following statements is consistent with how changes in opportunity cost are expected to…
A: Opportunity cost refers to the loss which is incurred by giving up the next best alternative while…
Q: Yes, I do believe people who disagree in regard to normative ethical theory can still reach an…
A: I agree with you that people who disagree in regard to normative ethical theory can still reach an…
Q: We will focus on the US and Australia. Refer to the attached Excel file which has key macroeconomic…
A: Relative Purchasing Power Parity (Relative PPP) is an economic theory and exchange rate…
Q: In 2017, Nepal’s production of rice and machinery was published by the Nepal Bureau of Statistics…
A: BundleRice ('000)MachineryP090Q1089R2685S3780T4575U5070V5565W5960X6650Y7730Z800PPF shows the varios…
Q: Using 2018 as the base year, what is the fixed-weight real GDP in 2018? A $25,600.00 B $15,600.00 C…
A: A summation of a country's final goods and services is known as Gross domestic product.. It measures…
Q: What provision of federal law makes employer-based health insurance even more attractive to most…
A: Tax Exclusion for Employer-Sponsored Health Insurance:The tax exclusion for employer-sponsered…
Q: analyse the meaning of political development and the influence of political modernisation theories…
A: Political development refers to the process through which societies and nations evolve and progress…
Q: 1a Russia's BOP in year 2006 was (in millions) $ 1b The net capital flow in year 2006 was (in…
A: The balance of payment(BOP) refers to the annual statement of an economy which reflects the…
Q: Let Utility be given by U(x, y) = x2y2 With a budget contraint pxx + pyy = y Let px = 10 Let py =…
A: We can do this by setting her marginal utility of each good equal to the price of that good.The…
Q: Suppose that Musashi and Rina are the only consumers of ice cream cones in a particular market. The…
A: A product's demand curve illustrates the contrary relationship between the price and the quantity…
Q: Suppose that the economy is currently operating at full employment as depicted in the graph to the…
A: The inflationary gap happens when the current output is greater than the full employment level of…
Q: 11. If the economy goes from 1 computer to 2 computers, what is the opportunity cost of the…
A: Opportunity cost is the sacrifice of a second good to release enough resources to produce one…
Q: If the marginal revenue function for a manufactures product is MR = R' (Q) = 5 + 10 (1 + Q)−³ ; find…
A: Two fundamental concepts in economics are the marginal revenue function and the demand function. The…
Q: If an economy has current account and budget deficits, the government should tighten fiscal policy.…
A: A government budget is a financial arrangement that frames the government's revenue and expenditure…
Q: 5. In the B-M approach, explain the effects of the following and show them diagrammatically: a) an…
A: In the B-M approach, a mandatory reserve ratio is the amount of reserves that banks are required to…
Q: On January 1, 2012, Albert invested $10,000 at 6 percent interest per year for three years. The CPI…
A: A consumer price index measures the basket of goods purchased by households. It is used to calculate…
Q: Is nominal GDP larger or smaller than real GDP in Panel A data? Explain why specifically. (Note…
A: GDP is the gross domestic product. GDP is the market value of all the goods and services produced in…
Q: The paper also proposes that.... “with increased unemployment benefits some workers may experience…
A: Since it is mentioned to answer only the subparts D and E, only those subparts are answered.The…
Q: Why does this PPF have a bowed-out shape? How can the economy increase its production of both tea…
A: We need to draw the PPF curve using the above combinations and tell us about its shape.
Q: From the book Poverty by America, Discuss the dissonance between our rising incomes and the…
A: In many developed countries, including the United States, there has been a growing dissonance…
Q: When production of a good can be expanded without significantly increasing the overall demand for…
A: The production of a good implies the process of creating or manufacturing a tangible product that…
Q: Suppose that customers are uniformly distributed along a street which is represented by the unit…
A: A new market potentially enters the scene, when it can recover the cost of entering the market…
Q: Imagine a market with demand p(q) = 100 − q. There are two firms, 1 and 2, and each firm i has to…
A: Imagine a market with demand . There are two firms, 1 and 2, and each firm i has to simultaneously…
Q: Finance With the economy in equilibrium, how are 1. firms’ total output (RGDP), 2. expenditures (C +…
A: The expenditure-income framework, additionally referred to as the circular flow of income and…
Q: Which situation would most likely cause a nation's possiblitiy curve to shift inward? A. Investing…
A: The production possibility curve shows the maximum output combinations of two goods that can be…
Q: Here is the demand for coconuts: P 3 4 5 6…
A: The term equilibrium price and quantity refers to the condition in which a market's supply and…
Q: Which of the following will be counted as part of the U.S.'s GDP for a given year? Select one: O a.…
A: GDP is the sum total of market value of final goods and services produced in the economy in a period…
Q: Keep in mind that you don’t have to die to have to pay inheritance and gift taxes under the current…
A: The answer to the given question is done from the perspective of economics, taking into account…
Q: QUESTION 9 John lives in the small island nation of Vanuatu, and is a producer in the perfectly…
A: Perfect competition: A firm in the competitive market is a price taker because it has large number…
Q: A and B live on adjacent plots of land. Each has two potential uses for her land, the present values…
A: In this scenario, A and B have adjacent plots of land with different potential uses, and the values…
Q: ce P₁. producer surplus is represented by areas:
A: Producer surplus refers to the surplus of the producer. Sometimes by selling the products above the…
Q: The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is…
A: Arithmetic gradient cash flow refers to a series of cash flows where there is a constant increase or…
Q: Consider a 100-person economy, where half of the population receives 20% of the total income and the…
A: We are given the following information about the economy:The Lorenz-curve approximation gives us the…
Q: when prices change so slowly that they don't affect how people spend, save or invest. the bank of…
A: Central bank is an institution that regulates money supply and supervises the banking system in the…
Q: Let market demand be given by Q(P) = 100-P. Firm 1's cost function is given by C(q)-10q₁. Firm 2's…
A: Nash equilibrium refers to a situation in which each player in a game makes the best decision…
Q: 8. Chapter ma2pe09r, Section .02, Problem 011 (ID: 011.02.MANK09) In the circular-flow diagram,…
A: The circular flow diagrams describe the movement of money in a society. All combinations of circular…
Q: Cash held by public Transactions deposits Required reserves Excess reserves U.S. bonds held by…
A: Macroeconomic monitoring will remain crucial since it affects the economy's final expansion route as…
Q: Suppose there are two firms in an economy, and that the production set of firm 2 is a subset of the…
A: Profit maximization is a key concept in economics and the main goal of organizations. It includes…
Q: 5) The demand for ground chuck (hamburger) in a certain region of the United States is given by…
A: Elasticity describes the responsiveness of a good or service's quantity demanded or supplied to…
Q: Suppose there are 2 countries, A and B, which only differ in their capital depreciation rates A OB.…
A: There are two countries A and B.Their depreciation rates are given asThe production functions for…
Q: The slope of the blue curve measures the plane's At point A, the slope of the curve is Calculating…
A: It can be defined as a mathematical tool that is used in different types of research to determine…
Q: We have two players A and B, where A can go L or R, and B can go T, B or R. The payoffs are decided…
A: Game theory is a tool that helps to find solutions to problems where many parties are involved in…
Q: сот рис JUND OFF YOUR ANSWER TO THE NEAREST HUNDREDTH iredit suel t. It l bic tolatr
A: Total fixed cost (TFC) : TFC refers to the total amount of money that a company spends on its fixed…
-
Suppose Jenna and Karen both regard peanut butter and jelly as perfect complements at a 1:1 ratio. Show, using an Edgeworth box diagram, that if Jenna receives 10 peanut butter and no jelly and Karen receives 10 jelly and no peanut butter, after trading, they will each end up with 5 units of each.
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
Step by step
Solved in 3 steps with 2 images
- Neha and Lorenzo need to decide which one of them will take time off from work to complete the rather urgent task of digging postholes for their new fence. Neha is pretty good with a post auger; she can dig the holes in 30 minutes. Lorenzo is somewhat slow; it takes him 5 hours to dig the holes. Neha earns $110 per hour as a personal trainer, while Lorenzo earns $25 per hour as a clerk. Keeping in mind that either Neha or Lorenzo must take time off from work to dig the holes, who has the lower opportunity cost of completing the task? a) Neha and Lorenzo face identical opportunity costs b)Neha C)LorenzoIn a sideshow game. A player gets 3 balls to place into a Clown's mouth. Each ball is swallowed by the Clown and is then deposited into slots that can hold only 1 ball. Slots are numbered 1 to 9 and prizes are allocated to a player depending on the slot value of the three balls. If for example the first ball landed in slot 8, the second in slot 2 and the third in slot 1, the resulting prize number would be 821 as shown in Figure 3. 3rd 2nd 1st dol 1 2 3 4 5 6 7 8 9 Figure 3: A prize number of 821 is shown for a side show game. a) How many resulting prize numbers are possible in this game? b) How many resulting prize numbers are possible that end with the number 1?QUESTION 8 S1, S2, S3 and S4 are UIUC students who just graduated. They each have a poster of Dolly Parton that they are willing to sell. B1, 82, B3 and B4 are new students at UIUC and want to buy Dolly Parton postern for their rooms. The tables below give the minimum selling prices and maximum buying prices for each student. Minimum Selling Prices Maximum Buying Pricen X+$9 S1 $10 B1 S2 $11 B2 X+$14 S3 $20 B3 X+$16 S4 $25 B4 X+$26 If X is negative $5 (.e., Xu-$5), what is the market-clearing price? Note: Do not include the dollar sign,
- 6) You have been assigned to create a new TV game show, and you have an interesting idea that you call, “I WANT TO BE A MILLIONAIRE.” The basics are: 1) two contestants; 2) the show begins with each contestant being given $1 million (!), and then 3) they begin playing a game that can increase or decrease that $1 million. You worry that the initial outlay of $2 million will stun your producers, so you decide to prepare them with a simpler version of your game that you call: “I WANT $3.” There are four steps in this simpler game: I. There are two contestants/opponents (who do not know each other and cannot communicate with each other during the game). II. Each player is given $3 at the start of the game. III. Independently and simultaneously, each player must choose whether they want to add $0, $1, $2 or $3 to their initial stake of $3. Doing so reduces their opponent’s award by $0, $2, $4, or $6, respectively. IV. Each player knows that their payoff at the end of the game is based on…6) You have been assigned to create a new TV game show, and you have an interesting idea that you call, “I WANT TO BE A MILLIONAIRE.” The basics are: 1) two contestants; 2) the show begins with each contestant being given $1 million (!), and then 3) they begin playing a game that can increase or decrease that $1 million. You worry that the initial outlay of $2 million will stun your producers, so you decide to prepare them with a simpler version of your game that you call: “I WANT $3.” There are four steps in this simpler game: I. There are two contestants/opponents (who do not know each other and cannot communicate with each other during the game). II. Each player is given $3 at the start of the game. III. Independently and simultaneously, each player must choose whether they want to add $0, $1, $2 or $3 to their initial stake of $3. Doing so reduces their opponent’s award by $0, $2, $4, or $6, respectively. IV. Each player knows that their payoff at the end of the game is based on…6) You have been assigned to create a new TV game show, and you have an interesting idea that you call, “I WANT TO BE A MILLIONAIRE.” The basics are: 1) two contestants; 2) the show begins with each contestant being given $1 million (!); and then 3) they begin playing a game that can increase or decrease that $1 million. You worry that the initial outlay of $2 million will stun your producers, so you decide to prepare them with a simpler version of your game that you call: “I WANT $3.” There are four steps in this simpler game: There are two contestants/opponents (who do not know each other and cannot communicate with each other during the game). Each player is given $3 at the start of the game. Independently and simultaneously, each player must choose whether they want to add $0, $1, $2 or $3 to their initial stake of $3. Doing so reduces their opponent’s award by $0, $2, $4, or $6, respectively. Each player knows that their payoff at the end of the game is based on their initial…
- Julia and Ralph need to decide which one of them will take time off from work to complete the rather urgent task of pruning their trees. Julia is pretty good with a pole saw; she can prune the trees in 1 hour. Ralph is somewhat slow; it takes him 6 hours to prune the trees. Julia earns $120 per hour as a business consultant, while Ralph earns $15 per hour as a lifeguard.Keeping in mind that either Julia or Ralph must take time off from work to prune the trees, who has the lowest opportunity cost of completing the task?Question 3 A certain household comprises of a couple, Adam (A) and Betty (B). They have lexicographic preferences over two goods G1 and G2 - A wants to consume as much of G1 as possible, before moving on to G2 whereas, for B, it is the opposite, she wants to consume as much of G2 as possible before moving on to G1.¹ Given their varying preferences, they decide to shop separately, after dividing the household income equally. The household income is $8. One difference to the usual setting - there are government restrictions in place so that no individual is allowed to buy more than two units of either good. Hint: Do not use mathematical brute force (like Calculus) to solve this problem. A simple diagram with appropriate budget lines, etc. should suffice. 1) Suppose prices are p= (P₁, P2) = (1,2). Denote the optimal choice of A and B as a= b= (b₁,b₂) respectively. Solve for a and b. (a1, a2) andQuestion 3 A certain household comprises of a couple, Adam (A) and Betty (B). They have lexicographic preferences over two goods G1 and G2 - A wants to consume as much of G1 as possible, before moving on to G2 whereas, for B, it is the opposite, she wants to consume as much of G2 as possible before moving on to G1.¹ Given their varying preferences, they decide to shop separately, after dividing the household income equally. The household income is $8. One difference to the usual setting - there are government restrictions in place so that no individual is allowed to buy more than two units of either good. Hint: Do not use mathematical brute force (like Calculus) to solve this problem. A simple diagram with appropriate budget lines, etc. should suffice.
- You must allocate the 70,000 seats in Reliant Stadium (in Houston) among Texan (Houston) and Cowboy (Dallas) fans for an upcoming game between the two footfall teams. You can set different prices for seats in the Dallas and Houston sections of the stadium. Suppose you can obtain $40/ticket from Houston fans irrespective of the number of seats you allocate to Houston fans. You must drop price in order to sell more tickets to Dallas fans, however. Let Q be the number of tickets you allocate to Dallas fans. Assume that the maximum price you can charge for these tickets is given by the following inverse demand function P= 80 500 (a) Express the total revenue (on all 70,000 seats) from ticket sales as a function of Q; (b) Derive the first-order condition of the revenue-maximizing problem (it's a function about Q); (c) What is the optimal number of seats allocated to Dallas fans?In this week’s discussion we focus on consumer decision-making based on utility theory, opportunity costs, and economic profits. (a) Two economists are attending a conference in an unfamiliar city. At the end of the day, Economist A states she is “in the mood for a high-quality dinner” and after narrowing her search to two fine-dining establishments located on the same block, she ultimately selects the restaurant with the higher prices (assuming cost is not an issue for either economist). Economist B chooses to go to a one-price all-you-can-eat buffet. Using economic theory how would you explain the difference in way Economist A goes about maximizing her utility to Economist B? Next year when they both return to the economics conference in the same city, which of the two restaurants do you think has a higher chance of not being there anymore and why? (one paragraph) (b) Your mother owns and runs an arts and craft store, and the business is doing well. She would have otherwise been…Suppose that Ciana is deciding whether or not to buy a pair of sandals that she has been researching online, and also the best place to make her purchase. Three different stores in the area sell the sandals she likes, but some stores are more convenient for Ciana to reach than others. One option is her local shoe store located only 15 minutes away from where she works, where they charge a marked-up price of $112 for the sandals: Store Local Shoe Store Different Neighborhood in Town Rural Outlet Travel Time Each Way (Minutes) 15 30 60 Store Local Shoe Store Different Neighborhood in Town Marked-up price Rural Outlet Juanita's office Price of a Sandals (Dollars per sandals) 112 98 86 Discounted price Ciana earns an hourly wage of $42 at her job. In order to purchase her sandals she will have to take time off work, so each hour away from her job costs her $42 in lost income. Assume that Ciana's travel time is the same each way (to and from the store) and that it will take her 30 minutes…