tổ compute the substitution effect of a change in the price of some good on the demand for this good, we need to adjust the consumer's budget. Out of the 2 methods-Slutsky's and Hicks's-to find the substitution effect, in which one is the adjusted income smaller? O a. Slutsky's O b. Hicks's O c. Not enough information to answer question.

If during the following year it is predicted that each comedy skit will generate 30 thousand and each musical number 20 thousand, find the maximum income for the year. A television program director must schedule comedy skits and musical numbers for prime-time variety shows. Each comedy skit requires 2 hours of rehearsal time, costs 3000, and brings in 20,000 from the shows sponsors. Each musical number requires 1 hour of rehearsal time, costs 6000, and generates 12,000. If 250 hours are available for rehearsal and 600,000 is budgeted for comedy and music, how many segments of each type should be produced to maximize income? Find the maximum income.

Redo Exercise 5, assuming that the house blend contains 300 grams of Colombian beans, 50 grams of Kenyan beans, and 150 grams of French roast beans and the gourmet blend contains 100 grams of Colombian beans, 350 grams of Kenyan beans, and 50 grams of French roast beans. This time the merchant has on hand 30 kilograms of Colombian beans, 15 kilograms of Kenyan beans, and 15 kilograms of French roast beans. Suppose one bag of the house blend produces a profit of $0.50, one bag of the special blend produces a profit of $1.50, and one bag of the gourmet blend produces a profit of $2.00. How many bags of each type should the merchant prepare if he wants to use up all of the beans and maximize his profit? What is the maximum profit?

2. Pretend it's 2005 and people still use iPods. All iPod owners consider only two options for downloading music to their MP3 players: purchase songs from iTunes, or copy songs from friends' CDs (it's 2005, so people still own CDs, too). With these two options, suppose the weekly inverse market demand for the song “All These Things That I've Done" by The Killers (remember, it's 2005) is p= 1.98 – 0.00198Q Suppose the marginal cost to Apple of you downloading a song is zero. (a) What is Apple's optimal price of "All These Things That I've Done"? (b) How many downloads of “All These Things That I've Done" do they sell? (c) Now suppose Apple sells a version of the iPod equipped with software in which songs played on the iPod must be downloaded from iTunes. For this iPod, the inverse market demand for "All These Things That I've Done" is p downloads for this player? How many downloads do they sell each week? 2.75 – 0.003Q. What is Apple's optimal price of