Q: Maurice has the following utility function: U(X,
Maurice has the following utility function: U(X,Y)=20X +80Y − X2 −2Y2,where X is his consumption of CDs, with a price of $1, and Y is his consumption of movie videos, with a rental price of $2.He plan...
See AnswerQ: What economic forces explain why the real price of eggs has
What economic forces explain why the real price of eggs has fallen while the real price of a college education has increased?How have these changes affected consumer choices?
See AnswerQ: In 1996, Congress raised the minimum wage from $4
In 1996, Congress raised the minimum wage from $4.25 per hour to $5.15 per hour, and then raised it again in 2007.Some people suggested that a government subsidy could help employers finance the highe...
See AnswerQ: The rent control agency of New York City has found that
The rent control agency of New York City has found that aggregate demand is QD = 160 – 8P.Quantity is measured in tens of thousands of apartments.Price, the average monthly rental rate, is measured in...
See AnswerQ: Please explain whether the following statements are true or false.
Please explain whether the following statements are true or false. a.If the owner of a business pays himself no salary, then the accounting cost is zero, but the economic cost is positive. b. A firm...
See AnswerQ: Which of the following utility functions are consistent with convex indifference
Which of the following utility functions are consistent with convex indifference curves and which are not? a. U(X, Y) = 2X + 5Y b.U(X, Y) = (XY)0.5 c.U(X, Y) = Min(X, Y), where Min is the minimum of...
See AnswerQ: What is the difference between ordinal utility and cardinal utility?
What is the difference between ordinal utility and cardinal utility?Explain why the assumption of cardinal utility is not needed in order to rank consumer choices.
See AnswerQ: Anne has a job that requires her to travel three out
Anne has a job that requires her to travel three out of every four weeks.She has an annual travel budget and can travel either by train or by plane.The airline on which she typically flies has a frequ...
See AnswerQ: Which of the following two statements involves positive economic analysis and
Which of the following two statements involves positive economic analysis and which normative?How do the two kinds of analysis differ? a. Gasoline rationing (allocating to each individual a maximum a...
See AnswerQ: You run a small business and would like to predict what
You run a small business and would like to predict what will happen to the quantity demanded for your product if you raise your price.While you do not know the exact demand curve for your product, you...
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