Business, 14.02.2020 04:24 jacycooley

Suppose we have a market with 200 individuals with preferences over two goods, x and y.
Consider that all 200 individuals have the utility function U=x2/3y1/3 and that each individual has the same income and is subject to the same prices. Calculate the market demand for x as a function of income and prices.
Find the own price elasticity of demand for good x. Is the elasticity constant or is it changing at different values of Px?
a. Suppose now that we know m=180,Px=4, and Py=2. What is the market demand for x? This should be a number.
b. Consider now that 100 individuals (type A) have the utility function U=x1/3y2/3 and the other 100 (type B)have the utility function U=x2/3y1/3. Each individual still has the same income and is subject to the same prices. Calculate the market demand for x as a function of income and prices.
c. Suppose now that we know m=180,Px=4, and Py=2. What is the market demand for x? This should be a number.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 11:40

During 2016, nike inc., reported net income of $3,760 million. the company declared dividends of $1,022 million. the closing entry for dividends would include which of the following? select one: a. credit cash for $1,022 million b. credit dividends for $1,022 million c. debit net income for $1,022 million d. credit retained earnings for $1,022 million e. debit dividends for $1,022 million

Answers: 1

Answer

Business, 22.06.2019 16:00

In a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so. what is another way to state this fact? (a) market supply is much more elastic in the long run than the short run. (b) in the long run, average total cost is minimized. (c) in the long run, price equals marginal cost. (d) market supply is much less elastic in the long run than the short run.

Answers: 1

Answer

Business, 22.06.2019 21:10

Match the terms with their correct definition. terms: 1. accounts receivable 2. other receivables 3 debtor 4. notes receivable 5. maturity date 6. creditor definitions: a. the party to a credit transaction who takes on an obligation/payable. b. the party who receives a receivable and will collect cash in the future. c. a written promise to pay a specified amount of money at a particular future date. d. the date when the note receivable is due. e. a miscellaneous category that includes any other type of receivable where there is a right to receive cash in the future. f. the right to receive cash in the future from customers for goods sold or for services performed.

Answers: 1

Answer

Business, 22.06.2019 23:50

Melissa buys an iphone for $240 and gets consumer surplus of $160. a. what is her willingness to pay? b. if she had bought the iphone on sale for $180, what would her consumer surplus have been?

Answers: 3

Answer

You know the right answer?

Suppose we have a market with 200 individuals with preferences over two goods, x and y.
Consid...

Questions