Suppose the utility function is U(x,y)=xy. In 2021, Px=5, Py=5. Due to covid, the price of x in 2022 decreases to Px=2. Your income is I=200 unchanged in these two years. 1. What are the (approximate) substitution and income effects of this change in prices? 2. What kind of good is x (giffen good, normal good, inferior good)? explain.

Q: What is MARR and how do you choose it?

A: While making a decision to invest in a new project, the managers of companies do an analysis to…

Q: True or False: When an online job application asks for your Social Security Number, you should only…

A: Your Social Security Number (SSN) is a unique identification number issued to you by the Social…

Q: Bill is a professional photographer. His camera is broken, and he needs a new one within the next…

A: Willingness to pay (WTP) shows the maximum price that the buyer or consumer is ready to pay to get…

Q: there is two answers, what is the other one?

A: Increasing the economy also raises the standard of living. The current standard of living must be…

Q: The South Korean Government in the 1970s decided to follow a strategy of increased investment in…

A: Scarcity refers to the limited availability of resources, that are used to produce goods and…

Q: A friend offers you a chance to play a game in which there are only two outcomes, each with equal…

A: A game is said to be fair when the value of a game is zero, it means there is neither gain of loss…

Q: How do you build housing in wealthy neighborhoods?

A: It's generally not feasible because of the value of the land. In wealthy areas, land is expensive…

Q: Calculate the value of savings if APS is 0.45 and income is $1200

A: In the above question, we are given with the values as:- Average propensity to save = 0.45 Income =…

Q: What is the Decision Rule for simple Investments?

A: In a simple investment, cash flows change sign only one time. For example, negative cash flow in the…

Q: ICD-10 was implemented in October 2015. Summarize how the industry handled it.

A: The first international classification list called as international list of causes of death was…

Q: Your workforce in the sales department consist of 30 workers. 10 are baby boomers born between 1945…

A: The workforce is the work pool in employment. It is frequently used to depict those working for a…

Q: if the child buys either chocolates or hard candies one piece at a time, what will be his first two…

A: In economics, utility refers to the entire pleasure derived from the consumption of an item or…

Q: What are the different ways in which personal property can be obtained?

A: Personal property is a type of property that consists of any property except real estate. It's also…

Q: Government-imposed taxes cause reductions in the activity that is being taxed, which has important…

A: There are many sub-parts of the question. As per honor code, we can only provide solution of first…

Q: What are speed payments? Could they potentially be ethical? Does it matter where speed money…

A: Speed payments, also known as 'facilitation payments' or 'grease payments', are small bribes paid to…

Q: What are standard deductions?

A: There exists a difference between taxable income and the total amount of income earned by the…

Q: Jack and Diane work at a bakery. Jack can make either five batches of cookies or two cakes per hour,…

A: Here we will use the concept of absolute advantage. The worker who have advantage in producing cakes…

Q: Linda has a chronic illness that requires two medications: Xolophyl (X) and Ysplinti (Y). She needs…

A: Given that :Two good : aolophyl (X) and ysplinti (Y)Price of X and Y are Px and Py…