Business, 13.11.2019 07:31 powerprefection4114

Malachi only consumes 2 goods: dvd rentals and coffee. his utility function is = ..25, where r is the number of rentals and c is cups of coffee. malachi has $16 in his pocket right now, and he plans to spend all of the $16 on dvd rentals and coffee today. a. the price of one rental is $4 and the price of coffee is $2 per cup. solve for malachi’s optimal bundle. b. suppose that malachi signs up for a membership that reduces the price of a rental to $2, while leaving his income unchanged. find the substitution effect, the income effect, and the total effect of the decrease in the price of video rentals on malachi’s consumption of rentals and coffee. c. from your answer to part (b), are dvd rentals and coffee normal or inferior goods for malachi? explain.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 14:50

Pederson company reported the following: manufacturing costs $480,000 units manufactured 8,000 units sold 7,500 units sold for $90 per unit beginning inventory 2,000 units what is the average manufacturing cost per unit? (round the answer to the nearest dollar.)

Answers: 3

Answer

Business, 23.06.2019 07:00

Nthis economy, community members typically use simple tools to plant and harvest crops. food supplies are supplemented by hunting animals and gathering plant materials. members trade with each other to obtain needed goods, as few people hold currency. little economic growth occurs. what type of economy is being described?

Answers: 3

Answer

Business, 23.06.2019 19:30

You are offered a free ticket to see the chicago cubs play the chicago white sox at wrigley field. assume the ticket has no resale value. willie nelson is performing on the same night, and his concert is your next-best alternative activity. tickets to see willie nelson cost $40. on any given day, you would be willing to pay up to $50 to see and hear willie nelson perform. assume there are no other costs of seeing either event. based on this information, at a minimum, how much would you have to value seeing the cubs play the white sox to accept the ticket and go to the game? a. $0b. $40c. $10d. $50

Answers: 1

Answer

Business, 23.06.2019 21:30

The 2007 nbi data were analyzed and the results made available oat the fhwa web site. using the fhwa inspection rations, each of the 599,766 highway bridges in the united states was categorized as structurally deficient, functionally obsolete, or safe. about 12% of the bridges were found to be structurally deficient, while 13.5% were functionally obsolete. a. what is the variable of interest to the researchers? b. is the variable of part a quantitative or qualitative?

Answers: 3

Answer

You know the right answer?

Malachi only consumes 2 goods: dvd rentals and coffee. his utility function is = ..25, where r is...

Questions