The demand they face for their product is q = 1000 - 5p. Their cost function is C(q) = 1000 (Each copy of the program has zero marginal cost). How many copies do they sell? O a. 100 O b. 250 O c. 400 O d. 500 An individual has the following utility, U = In X+ 2 In Y. What do we know about the Marshallian and Hicksian demand elasticities of good x with respect to the price of x? O a. Marshallian elasticity e.p, will be more negative than Hicksian elasticity ef.p. O b. Marshallian elasticity ex.p, will be less negative than Hicksian elasticity efp, O c. Marshallian elasticity ex.p, will be the same as Hicksian elasticity efp, O d. Marshallian elasticity and Hicksian elasticity will have opposite signs. An individual has utility function U(X, Y) = x3y23, Which of the following is true? a. Demand for X and Y have constant expenditure shares s, and sy. O b. The own-price substitution effect of x (dh,ldp,) is 0. O c. X and Y are net complements. Od. The income effect for both goods is 0.

The demand they face for their product is q = 1000 - 5p. Their cost function is C(q) = 1000 (Each copy of the program has zero marginal cost). How many copies do they sell? O a. 100 O b. 250 O c. 400 O d. 500 An individual has the following utility, U = In X+ 2 In Y. What do we know about the Marshallian and Hicksian demand elasticities of good x with respect to the price of x? O a. Marshallian elasticity e.p, will be more negative than Hicksian elasticity ef.p. O b. Marshallian elasticity ex.p, will be less negative than Hicksian elasticity efp, O c. Marshallian elasticity ex.p, will be the same as Hicksian elasticity efp, O d. Marshallian elasticity and Hicksian elasticity will have opposite signs. An individual has utility function U(X, Y) = x3y23, Which of the following is true? a. Demand for X and Y have constant expenditure shares s, and sy. O b. The own-price substitution effect of x (dh,ldp,) is 0. O c. X and Y are net complements. Od. The income effect for both goods is 0.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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