Suppose you have $1000 to spend on shirts and sweaters. the price of a shirt is $35 and the price of the sweater is $5 a) The opportunity cost of buying one shirt is ......... sweaters b) The opprotunity cost of buing one sweater is......shirts
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A: Total Willingness to Pay (Dollars):Movies WatchedRaphaelAlexClancyHubert218201416Consumer Surplus…
Suppose you have $1000 to spend on shirts and sweaters. the
a) The
b) The opprotunity cost of buing one sweater is......shirts
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- Mitchell and Scott can produce either apples or oranges. The table lists the maximum number of each that they can produce per day. Apples Oranges Mitchell 6 30 Scott 12 24 Which of the following combinations of goods is it possible for Mitchell and Scott to consume if they can trade apples and oranges on the world market at a price of $6/kg for apples and $1/kg for oranges? 15kg of apples and 18kg of oranges 15kg of apples and 20kg of oranges 10kg of apples and 50kg of oranges Okg of apples and 108kg of orangesSuppose two bars, “the Last Jar” and “Prince Alfred”, can choose to sell a pint of beer for either $10 or $12. For simplicity, assume that: these are the only two possible prices; there are no costs (e.g., there is no cost for obtaining and serving the beer), and each customer drinks exactly one pint of beer. There are two types of customers: professors and students. Professors are not price-sensitive and go to the bar closest to their department’s building. Thus, 50 professors from the Melbourne School of Engineering go to Prince Alfred, while 50 professors from the Melbourne Graduate School of Education go to the Last Jar. Meanwhile, the students, who are 200 in total, are price sensitive. They go to the bar with the lowest price –or, if both bars charge the same price, then they split evenly. Sequential game: a) Suppose the Last Jar chooses what price to set first. Then, after observing the price set by the Last Jar, Price Alfred chooses what price to set. Draw the extensive form…Today, an estimated 2 million people drive for Uber, often evenings and weekends after they’re finished the day at a full-time job. Explain how the growth of Uber reflects the way in which ridesharing has altered the opportunity cost of leisure.
- udy Tools Tips ss Tips Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Alex, green (triangle symbols) for Becky, purple (diamond symbols) for Clancy, tan (dash symbols) for Elleen, and blue (circle symbols) for Hubert. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a motor scooter at a market price of $135. (Note: If a person will not purchase a motor scooter at the market price, indicate this by leaving his or her rectangle in its original position on the palette) 22# # 3 = = PRICE (Dulars per 100 H Nex Becky Clancy Elen Market Price Huber QUANTITY Motor scooters) Based on the information on the previous graph, you can tell that consumer surplus in this market will be Alex Becky Clancy Elen Hubert will buy motor scooters at the given market price, and totalFor each of the following questions identify which of the two types of consumer would likely be charged more for the good in question. Explain your perspective. 1. You may notice that there are no prices posted on the side of ice cream trucks. Who is likely to be charged more for ice cream: Children or Parents? Why? Parents are likely to be charged more for ice cream. 2. If you are flying on an airplane, you very likely paid a different price than most of the other people on your flight. Who is likely to be charged more for a ticket on an airplane: Businessmen or Vacationers? Why? Businessmen are likely to be charged more for a ticket on an airplane. 3. It costs the same to produce each unit of Microsoft Office that is sold, but students and business executives pay different prices. Who is likely to be charged more for Microsoft Office: Students or Business Executives? Why? Business Executives are likely to be charged more for Microsoft Office 4. Who is likely to be charged more for a…How does the sorting of consumers in the primary market, based on their willingness to pay for tickets, affect the allocation of resources and the efficiency of the market?
- 1. a) Consider an economy with 3 agents, Mohammed (M), David (D) and Susan (S). There are two goods available, good x, and good y. The marginal rates of substitution (where good x is on the horizontal axis and good y is on the vertical axis) are given by for Mohammed, for David and for Mohammed and David are both consuming twice as much of the good x than good y, while Susan is consuming equal amounts of x and y. What are the conditions for Pareto efficiency in an exchange economy? Are these consumption levels economically efficient? Can these consumption allocations be observed in a perfectly competitive equilibrium in an exchange economy without production? Explain. b. There are two firms in the economy. Each firm employs positive amounts of capital and labour. The technology satisfies diminishing marginal rate of technical substitution of labour for capital. Currently, A’s marginal rate of technical substitution of labour for capital is 4 while B’s marginal rate of technical…In a town of two people, Ben and Tem (bear with me on this, okay) the city is trying to decide how many acres to devote to the public park. Ben's demand function is QA = 20 - p and Tem demand TD = 20 function is QD = 26 – 20p, where Q is measured in acres and p is measured in dollars. Acres are supplied according to the function p = 10 + 60Q. a. Calculate the Pareto efficient size of the park in acres. b. Assuming that both Ben and Tem are truthful, how much would each pay for the efficient size of the park? What would be the total amount paid by the group? c. Sketch a diagram that shows each person's demand for acres and the Pareto efficient outcome. d. Explain how the size of the park might be different if the size of the park were determined by voluntary contributionsConsider the market for electric vehicles. The market price of each electric vehicle is $200,000, and each consumer demands no more than one electric vehicle. Suppose that Jake is the only consumer in the electric vehicle market. Their willingness to pay for an electric vehicle is $350,000. Based on Jake's willingness to pay, the following graph shows his demand curve for electric vehicles. Shade the area representing Jake's consumer surplus using the green rectangle (triangle symbols). PRICE (Thousands of dollars) 400 Jake's Demand 350 300 250 200 150 100 50 Market Price 0 0 3 4 5 QUANTITY (Electric vehicles) Jake's Consumer Surplus Now, suppose another buyer, Latasha, enters the market for electric vehicles, and her willingness to pay is $250,000. Based on Latasha's and Jake's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Jake's consumer surplus using the green rectangle (triangle symbols), and…
- Small engines are the main components of office and house appliances like printers, hand dryers, microwave ovens, food processors, etc. The graph depicts the market for small engines in the United States. Suppose that the government imposes a $15 tariff on each imported engine in an effort to bring manufacturing jobs back to the United States. Place the Waste shape to describe the waste of resources that would result from the trade restriction. Price (3) Incorrect 50 45 40 35 30 25 20 15 10 5 0 0 total cost: What is the total cost of the tariff? 337.5 Domestic supply Domestic demand 15 30 45 60 75 90 105 120 135 150 Quantity (millions of engines) Incorrect World supply Waste millions of dollarsJose sells his economics textbook from last semester, which he could sell back to the bookstore for $40, to Adolfo for $150. Adolfo had planned to pay $240 for the textbook at the bookstore. Which of the following statements is TRUE? A This trade did not create value because Adolfo is buying the textbook for more than Jose could get from the bookstore. B Both Jose and Adolfo are made better off by the trade. C Adolfo is made better off by the trade, but Jose is made worse off by the trade. D Jose and Adolfo must have the same preferences for the textbook. 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.There are only two people in the market - Amber and Zoe. Amber’s Marginal Willingness to Pay (MWTP) for the Qth bit of the good is given by MWTP=383-2*Q. Zoe’s Marginal Willingness to Pay (MWTP) for the Qth bit of the good is given by MWTP=51-3*Q. Based on this information, what is the market MWTP for the 32th bit of the good? Enter a number only.