... Barb Sam Barb Price of G Price of L L(hours) L(hours) G($) G($) 1 8 16 14 64 80 1 9 15 14 81 90 1 10 14 15 100 90 1 11 14 16 110 88 Formatted: Space Before: 1.2 line,After: 1.2 line, Line ... below. Chapter 4: Individual and Market Demand 49 changes and utility is kept at the same level, Jane will choose the same point (12, 24) . The income effect causes her to buy 4 more units of ... Q=1200 elasticity=PQΔQΔP= 40 (45 )1200=−1.5. P=30 and Q=1800 elasticity==PQΔQΔP= 40 (30)1800=−0.67. P=37.5 and Q=1500 elasticity==PQΔQΔP= 40 (37.5)1500=−1. Given...
... 1985 = CPI1990CPI1985*3.35=130.7107.6*3.35= $4. 07. The percentage change in the real minimum wage is therefore 4. 13 − 4. 07 4. 07= 0.0 147 , or about 1.5%. 6 Chapter 1: Preliminaries ... answer in (b). What do you notice? Explain. Percentage change in real price from 1980 to 2001 = −2 .43 2.98=− =−0.18 18%2.98. This answer is almost identical (except for rounding error) to the ... X*nominal price in year X. 1980 1985 1990 1995 2000 2001 $1.88 $1.62 $1.25 $0.87 $1.21 $1. 54 Since 1980 the real price of butter has decreased. b. What is the percentage change in the...
... F' = [( / ) , )]3 2 360 000 = 7 34. 8. From this, we obtain C': C' = (2/3)F' = (2/3)7 34. 8 = 48 9.9. In 1995, the bundle of 7 34. 8 food and 48 9.9 clothing would cost $2939.60 ... −PDPF=−1 4 . The slope of the indifference curve is MRS =−MUDMUF=−10F10D=−FD. Setting the two equal we get: FD=1 4 4F = D. We now have two equations and two unknowns: 4F ... he bought 5 books at a cost of $80 each for a total of $40 0. The new price of books is $88 and the cost of 5 new books is now $44 0. The $40 extra income will cover the price increase. Antonio...
... on this investment is EV = (0 .4) (100) + (0.3)(30) + (0.3)(-30) = $40 . The variance is σ2 = (0 .4) (100 - 40 )2 + (0.3)(30 - 40 )2 + (0.3)(-30 - 40 )2 = $2, 940 . 5. You are an insurance agent ... level of income that would guarantee him a utility of 21.18, which is $44 8.59. This means he would pay $1000- $44 8.59=$551 .41 to insure his gamble. d. In the long run, given the price of the lottery ... an income of $40 ,000 (I = 40 ) and can earn that income next year with certainty. She is offered a chance to take a new job that offers a .6 probability of earning $44 ,000, and a .4 probability...
... marginal product. For example, if L =4 and K =4 then q =4. If L=5 and K =4 then q =4. 24. If L=6 and K =4 then q= 4. 47. Marginal product of labor falls from 0. 24 to 0.23. c. q = 3LK2 This function ... K, and find q. Let L =4 for example. If K is 4 then q is 4, if K is 5 then q is 4. 47, and if K is 6 then q is 4. 89. The marginal product of the 5th unit of K is 4. 47 -4= 0 .47 , and the marginal ... MPL Firm 2 0 0.0 ___ 0.00 ___ 1 30.00 30.00 37.37 37.37 2 42 .43 12 .43 49 .31 11. 94 3 51.96 9.53 58.00 8.69 4 60.00 8. 04 65.07 7.07 For each unit of labor above 1, the marginal productivity...
... 2P = 4 + 4 P, or P = 4. To determine the equilibrium quantity, substitute P = 4 into either the supply equation or the demand equation: QS = 4 + 4( 4) = 20 and QD = 28 - 2 (4) = ... 90-10W** = 10W**, or w** = $4. 5 per hour and L** = 10 (4. 5) = 45 million persons employed. The real cost to the employer is $3.5 per hour. WL = 10ws98 4. 5 4 40 45 8090wage and employmentafter ... equal to area a. Numerically: a = (21.5-19.2)( 14. 6)+(17 .4- 14. 6)(21.5-19.2)(.5)=36.8 b = (17 .4- 14. 6)(21.5-19.2)(.5)=3.22 c = (21.5-19.2)(20 .4- 17 .4) =6.9 d = (21.5-19.2)(21.1-20.5)(.5)=0.69. These...
... profit-maximizing quantity: 120 - 0.04Q = 60, or Q = 1,500. 139 Chapter 10: Market Power: Monopoly and Monopsony Q = 144 P2 ⇒ P2= 144 Q ⇒ P = 144 Q=12QR = P* Q =12Q*Q = 12 QMR ... - 49 Q + 500 = 0. Note: if Q2 + bQ + c = 0, then Qbb aca=−± −2 4 2. Using the quadratic formula: Q =±−()( )( )()( ) 49 49 2 40 1500201.., there are two solutions: 10 .4 ... faces at P =4 or Q == 144 169. Therefore, if the monopolist produces 9 units or less, the price must be $4. Because of the regulation, the demand curve now has two parts: P = $4, if Q≤...
... or: TR = 40 ,000+7,500*3.75-1,000*3.75*3.75 = $ 54, 062.5. Total cost is equal to fixed costs of $10,000. Profit with a two-part tariff is $44 ,062.5 per week, which is greater than the $40 ,000 per ... MRB = 40 0 - 3.34QBBB. To determine the profit-maximizing quantities, set marginal revenue equal to marginal cost in each market: 650 - 5QA = 100, or QA = 110 and 40 0 - 3. 34 QB ... and Q2: P 10− P()1,000()+ 4 P 4 ⎛ ⎝ ⎞ ⎠ 1,000()⎡ ⎣ ⎢ ⎤ ⎦ ⎥ = 14, 000P−1,250P2. Then total revenue from both entry and user fees is equal to TR = 40 ,000+7,500P−1,000P2....