Multiplier principle. Suppose that Congress enacts a one-time-only 10% tax rebate that is expected to infuse $ y billion, 5 ≤ y ≤ 7, into the economy. If every person and every corporation is expected to spend a proportion x, 0.6 ≤ x ≤ 0.8, of each dollar received, then, by the multiplier principle in economics, the total amount of spending S (in billions of dollars) generated by this tax rebate is given by S ( x , y ) = y 1 − x What is the average total amount of spending for the indicated ranges of the values of x and y ? Set up a double integral and evaluate it.
Multiplier principle. Suppose that Congress enacts a one-time-only 10% tax rebate that is expected to infuse $ y billion, 5 ≤ y ≤ 7, into the economy. If every person and every corporation is expected to spend a proportion x, 0.6 ≤ x ≤ 0.8, of each dollar received, then, by the multiplier principle in economics, the total amount of spending S (in billions of dollars) generated by this tax rebate is given by S ( x , y ) = y 1 − x What is the average total amount of spending for the indicated ranges of the values of x and y ? Set up a double integral and evaluate it.
Solution Summary: The author calculates the average total amount of spending for the indicated ranges of the values of x and y.
Multiplier principle. Suppose that Congress enacts a one-time-only 10% tax rebate that is expected to infuse $y billion, 5 ≤ y ≤ 7, into the economy. If every person and every corporation is expected to spend a proportion x, 0.6 ≤ x ≤ 0.8, of each dollar received, then, by the multiplier principle in economics, the total amount of spending S (in billions of dollars) generated by this tax rebate is given by
S
(
x
,
y
)
=
y
1
−
x
What is the average total amount of spending for the indicated ranges of the values of x and y? Set up a double integral and evaluate it.
2. The growth of bacteria in food products makes it necessary to time-date some products (such as milk) so that
they will be sold and consumed before the bacteria count is too high. Suppose for a certain product that the number
of bacteria present is given by
f(t)=5000.1
Under certain storage conditions, where t is time in days after packing of the product and the value of f(t) is in
millions.
The solution to word problems should always be given in a complete sentence, with appropriate units, in the
context of the problem.
(a) If the product cannot be safely eaten after the bacteria count reaches 3000 million, how long will this take?
(b) If t=0 corresponds to January 1, what date should be placed on the product?
2.6 Applications: Growth and Decay; Mathematics of Finances
1. A couple wants to have $50,000 in 5 years for a down payment on a new house.
(a) How much should they deposit today, at 6.2% compounded quarterly, to have the required amount in 5
years?
(b) How much interest will be earned?
(c) If they can deposit only $30,000 now, how much more will they need to complete the $50,000
after 5 years? Note, this is not 50,000-P3.
Please help.
Chapter 7 Solutions
Calculus for Business, Economics, Life Sciences, and Social Sciences (13th Edition)
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