Consider an individual with Cobb-Douglas utility
U(x,y)=x^(1/3) y^(2/3)
Suppose that her income is I=$120, the price of good x is p_x=4 and the price of good y is p_y=10.
2.Find the optimal consumption bundle (x^*,y^*) of goods x, y – call this bundle A.
3.Now, assume that the price of good y is decreased to p_y^'=5. Find the new optimal consumption bundle (x^*, y^**) of goods x, y at the new price level – call this bundle C.
4.Draw the demand curve of good y.
5.Is good y a normal good?

Answers

Answer 1

The individual has Cobb-Douglas utility U(x,y) = x1/3y2/3, income of I = $120, and prices of x and y of px = 4 and py = 10, good y is a normal good.

The optimal consumption bundle (x*,y*) of goods x and y at this price level can be found by solving the consumer's budget constraint equation:

I = pxx + pyy = 4x + 10y = 120

Solving this equation for x and y gives the optimal bundle A as:

x* = 15, y* = 9.

At the new price level of py' = 5, the consumer's budget constraint equation is:

I = pxx + pyy = 4x + 5y = 120

Solving this equation for x and y gives the new optimal bundle C as:

x* = 24, y* = 6.

The demand curve of good y can be drawn by plotting the optimal bundle (x*, y*) for each given price level (py = 10 and py' = 5).

Since the demand for good y increases as the price decreases, good y is a normal good.

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Related Questions

Why did Daniel Webster, an avowed opponent of slavery, agree to support returning free African Americans to their enslavers?

Answers

Daniel Webster, a prominent American politician and lawyer in the 19th century, was an avowed opponent of slavery and had spoken out against it many times throughout his career.

However, he did support a controversial proposal to return free African Americans to their enslavers. This support was rooted in Webster's belief that the US Constitution required the return of escaped slaves to their owners under the Fugitive Slave Act of 1850. While he personally opposed slavery, Webster believed that upholding the Constitution was more important than his personal beliefs. This decision caused significant backlash from abolitionists and free Black communities, who saw it as a betrayal of their cause.

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Question 3 of 10
How is technical writing used?
A. To provide instructions or explain complicated things
B. To inform the reader about a new product or concept
C. To persuade the reader to support a new idea
OD. To establish the credibility and expertise of the author
SUBMIT

Answers

Your answer is A hope this helps

using straight line method. Generate the plots using Microsoft excel.
5. A company has purchased an equipment whose first cost is BD 1,000,000 with an estimated life of eight years. The estimated salvage value of the equipment at the end of its lifetime is BD. 20,000. Determine the depreciation charge at the end of 5th and book value at the end of 7th year using the sinking fund method of depreciation with an interest rate of 12% compounded annually.

Answers

Using the straight line method, you can generate plots using Microsoft Excel to calculate the depreciation charge at the end of the 5th year and the book value at the end of the 7th year for an equipment purchased at a first cost of BD 1,000,000 with an estimated life of 8 years and a salvage value of BD 20,000.


To begin, enter the data into the table. In column A, enter the years (1,2,3,4,5,6,7,8). In column B, enter the first cost (1,000,000). In column C, enter the estimated life of the equipment (8). In column D, enter the salvage value (20,000).


In column E, calculate the depreciation expense per year by subtracting the salvage value from the first cost, and then dividing it by the estimated life of the equipment (1,000,000 - 20,000)/8 = 119,875.


In column F, calculate the cumulative depreciation, which is the sum of the depreciation expenses for each year (119,875 + 119,875 + 119,875 + 119,875 + 119,875 + 119,875 + 119,875 + 119,875 = 959,000).


In column G, calculate the book value of the equipment at the end of each year by subtracting the cumulative depreciation from the first cost (1,000,000 - 959,000 = 41,000).


Using the sinking fund method of depreciation with an interest rate of 12% compounded annually, the depreciation charge at the end of the 5th year is BD 66,638. The book value at the end of the 7th year is BD 4,955.

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FILL IN THE BLANK. Public relations is most effective when it is a ______________ function, meaning it is part of an organization's overall leadership and decision-making process, helping to guide how the organization operates in its environment, rather than merely following the instruction of others.

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Public relations is most effective when it is a strategic function, meaning it is part of an organization's overall leadership and decision-making process, helping to guide how the organization operates in its environment, rather than merely following the instruction of others.

By being strategic, public relations can help an organization proactively address potential issues and effectively communicate with its stakeholders. This can help build trust and credibility, which are crucial for an organization's success.

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What does the quote mean it is a truth universally acknowledged that a single man in possession of a good fortune must be in want of a wife?

Answers

The quote "It is a truth universally acknowledged that a single man in possession of a good fortune must be in want of a wife" means that wealthy, single men are likely to be interested in getting married.

The quote is the opening line of Jane Austen's novel Pride and Prejudice, and it is often cited as an example of the novel's satirical tone.The quote highlights the idea that marriage was seen as a way for women to improve their social and economic status in society during the late 18th and early 19th centuries. This idea was especially relevant to women from lower-income families who were seeking financial stability.

In the novel, the quote is used to introduce the theme of marriage and to set the stage for the romantic drama that follows. The story revolves around the lives of several eligible young women who are in search of wealthy man as husband. The quote, therefore, is a commentary on the social and economic pressures that women faced in that time period, and it highlights the fact that marriage was often seen as a transaction rather than a romantic partnership.

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Suppose you win the next $501 Million Powerball
You have two options:
1) Take the $$501 Million in 29 equal annual payments (an annuity) starting 'today' or
2) Take a 'lump-sum' today, A single payment right now.
If you have a 5% Discount Rate (Opportunity Cost, K), how much money would you get right now as a lump-sum?
Answer in millions....Example, if your answer is 125,550,000 Simply enter 125.55

Answers

The money you would get right now as a lump-sum is $272.95 Million.

It is given that lottery winning is $501 Million with two options. Option 1 is 29 equal annual payments (an annuity) and option 2 is lump-sum today. The discount rate is 5%. To calculate the lump-sum today we will use the present value formula.

Present Value = Future Value / (1 + Discount Rate)^n

Where n is the number of years involved.

Lump-sum = Present Value of Annuity

$501 million can be received as 29 equal annual payments, hence Future Value (FV) = $501 Million, Number of Years (n) = 29, Payment per year (PMT) = $501 / 29 = $17.3 Million (approx.), and Discount Rate (K) = 5%

Present value of annuity:

PV = PMT * [(1 - (1 + K)^-n) / K]

PV = $17.3 Million * [(1 - (1 + 5%)^-29) / 5%]

PV = $272.95

Therefore, the Lump-sum amount as of today is $272.95 Million (approx.). Hence, you will receive is $272.95 Million.

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i. New information comes out showing that bonds for Anne’s Cupcake Shop have a very high rating (AAA), showing that Anne is very credit worthy. This credit rating means that Anne’s Cupcake Shop is ___likely or unlikely___
ii. Conduct a graph that shows what will happen to the demand for Anne’s bonds based on your assessment of this change in her default risk above.

Answers

This credit rating means that Anne’s Cupcake Shop is very likely to make good on any debt obligations. The graph would show the demand curve shifting to the right as the perceived risk of default is reduced.

A credit rating is a measure of an individual's or an entity's creditworthiness, which is the likelihood that they will be able to repay their debts on time. Credit ratings are typically assigned by credit rating agencies, such as Standard & Poor's, Moody's, or Fitch Ratings, which use various factors to determine a credit rating, including an individual's or entity's payment history, outstanding debts, and financial stability.

Credit ratings are expressed using a letter grade system, with AAA being the highest rating, indicating the lowest risk of default, and D being the lowest rating, indicating the highest risk of default. Credit ratings are used by lenders, investors, and other financial institutions to assess the creditworthiness of a borrower or investment and to determine the interest rate or return on investment that should be charged.

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Above is a graphical representation of the metabolic rates of ten baby alligators after being briefly being placed in tanks at five different temperatures. Given the information you have, which of the following statements is most likely true regarding this alligator species.a) These alligators are not behavioral thermoregulatorsb) The metabolic rate of a warmer acclimated alligator would level off at a lower temperature than these alligators.c) The oxygen demand of these alligators is higher at 25 °C than at 15 °C.d) Their upper thermal limit is 20°Ce) These alligators are endotherms

Answers

The correct answer is c) The oxygen demand of these alligators is higher at 25 °C than at 15 °C. From the graphical representation, we can see that the metabolic rate of the alligators increases as the temperature increases from 15 °C  to 25 °C. This indicates that the alligators have a higher oxygen demand at higher temperatures, as oxygen is necessary for metabolic processes.

The other options are incorrect because:
a) The graph does not provide information about the alligators' thermoregulation behavior.
b) The graph does not show the metabolic rate of a warmer acclimated alligator.
d) The graph does not indicate an upper thermal limit for the alligators.
e) The graph does not provide information about whether the alligators are endotherms or ectotherms.

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Circle Countries that came under the rule of a fascist government and dictator before WWII began

Great Britain,France,Germany,Russia,Italy,Japan

Answers

Answer:

Italy and Japan.

Explanation:

Answer:

Italy,Germany,Japan

Explanation:

Italy was under a rule of a fascist government and Benito Mussolini since 1922.

Germany was under a rule of a fascist government and Adolf Hitler since 1933 .

Japan was under a rule of a fascist government and a dictator since 1930.

WW2 began on September 1, 1939.

The ""other"" is a group status of privilege that individuals and groups in power place upon a different group and its members who pose a threat to the minority group or for those who fit into society. True or False

Answers

It is completely inappropriate to mention that ''Other'' is a group status of privilege enjoyed by the individuals and groups in powerplace upon different groups, thereby posing a threat to minority group, or those who fit into the society. Thus, the said statement holds false.

The groups may be ideally taken into interpretation as the amalgamation of individuals, who enjoy certain status through their existence in the society. However, this status is generally lower or weaker when the groups are defined as ''others''. Hence, the ''other'' groups also tend to representation of being minorities as well.

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What considerations would you make before purchasing a $2 lottery ticket with odds of winning of 1:50,000,000? Think about the trade-offs you would make as well as the chances of winning. Explain your answer

Answers

The considerations would you make before purchasing a $2 lottery ticket with odds of winning of 1:50,000,000 are trade-offs, chances of winning and price.

How to consider before purchasing

Before purchasing a $2 lottery ticket with odds of winning of 1:50,000,000, there are some considerations you should make:

Trade-offs:

You must weigh the opportunity cost of the money you are spending on the lottery ticket versus other ways you could spend that money. You may also wish to consider what you stand to gain if you win against the cost of losing.

Chances of winning:

Since your chances of winning the lottery are so tiny, you should think about the degree to which you may be counting on winning if you decide to purchase a ticket. If you're only buying one ticket, the likelihood of winning is very low, which may alter your attitude about the purchase.

Price: Consider the price of the ticket.

A $2 ticket may appear to be reasonable, but when compared to your available funds or other possibilities for that money, you may want to reconsider.The trade-offs and odds of winning should be taken into account before purchasing a $2 lottery ticket with odds of winning of 1:50,000,000.

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Can someone answer this question
What milestone was achieved during the Choson dynasty?

A) Korean scholars developed their own phonetic alphabet after centuries of using Chinese characters.

B) The Choson dynasty expanded its territory to include parts of China, as far inland as Manchuria.

C) The dynasty established extensive trading networks with the Tang dynasty of China as well as with Japan.

D) The dynasty’s founders set up the first national academy on the Korean Peninsula.

Answers

Answer:

A

Explanation:

Scholarship flourished under the Chosŏn dynasty, and in 1443, during the reign of King Sejong, the Korean phonetic alphabet, Hangul (han'gŭl), was invented. By the time of the Chosŏn ruler King Sŏngjong (1470–94), a bureaucratic system for government administration was established.

Consider 3 goods: Lucky Charms breakfast cereal, breakfast food, and breakfast cereal. Which of these goods has the most elastic demand and which of the goods has the most inelastic demand. Provide a complete explanation.

Answers

When it comes to the given goods, Lucky Charms breakfast cereal has the most elastic demand while breakfast food has the most inelastic demand.

What is elasticity of demand?

Elasticity of demand refers to how sensitive the quantity demanded of a commodity is to a shift in its price or income. If a small change in price or income leads to a large change in the amount demanded, demand is referred to as elastic. On the other hand, when the quantity demanded is largely unaffected by a change in price or income, the demand is inelastic.

Now let us understand why the demand for Lucky Charms breakfast cereal has the most elastic demand and breakfast food has the most inelastic demand:

Demand for Lucky Charms breakfast cereal is elastic because there are several substitutes for it, such as other breakfast cereals.

If the price of Lucky Charms increases, people may switch to a similar breakfast cereal, decreasing the quantity of Lucky Charms demanded.

The price increase, on the other hand, may have little impact on the quantity demanded of inelastic breakfast foods because they lack substitutes, and people must eat.

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which theorists believe that conversion and somatic symptom disorders are caused by unconscious conflicts carried forth from childhood, which arouse anxiety that the individual converts into more tolerable physical symptoms?

Answers

Option D is correct.

Freud, Janet, and Breuer are among the theorists who believe that conversion and somatic symptom disorders are caused by unconscious conflicts carried forth from childhood, which arouse anxiety that the individual converts into more tolerable physical symptoms.

What is a somatic symptom?

A somatic symptom refers to physical symptoms that are difficult to diagnose or describe. Somatoform disorders are those in which an individual has physical symptoms, but a medical examination does not uncover any physical problem with the patient.

In such cases, the psychological aspect of the problem is usually highlighted.

Individuals with somatic symptom disorders are most likely to develop these physical symptoms due to anxiety or depression. They may have little or no awareness of the underlying psychological conflict.

As a result, somatic symptoms may be their only method of dealing with inner turmoil. According to Freud, the roots of somatic symptom disorders lie in the child's past. These conflicts are then converted into physical symptoms to avoid the anxiety caused by the conflict.

Why is the correct answer correct?

According to the information provided in the question, it is quite clear that Freud, Janet, and Breuer are among the theorists who believe that conversion and somatic symptom disorders are caused by unconscious conflicts carried forth from childhood, which arouse anxiety that the individual converts into more tolerable physical symptoms.

Thus, option D is correct.

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patients with bilateral amygdala damage generally do not exhibit signs of fear to normally fear provoking stimuli. however, it has been demonstrated that there are other fear circuits because these individuals show fear when?

Answers

It has been observed that patients with bilateral amygdala damage generally do not exhibit signs of fear to normally fear-provoking stimuli. However, it has been demonstrated that there are other fear circuits because these individuals show fear when confronted with life-threatening stimuli.

What is the amygdala?

The amygdala is a portion of the brain's limbic system that plays a key role in processing emotions such as fear, anger, and pleasure, as well as controlling survival instincts such as the fight or flight response.

The amygdala is responsible for detecting and responding to stimuli that are critical for survival.

What is the function of the amygdala?

The amygdala's primary role is to process memory, decision-making, and emotional responses, particularly fear. It plays a key role in fear-related responses, including fear conditioning, fear memory consolidation, and fear-related behavior modification.

What happens when both amygdalae are damaged?

Bilateral damage to the amygdalae causes a variety of deficits in social, psychological, and physiological functioning.

However, patients with bilateral amygdala damage often show no fear to normally fear-provoking stimuli. They are also unable to detect fear in the faces of others and have a more general impairment in recognizing the emotional state of others.

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Bob produces flowers. The average variable cost reaches its minimum at a quantity A. the same as the quantity at which the average fixed cost is at a maximum. B. the same as the quantity at which the average total cost reaches its minimum. C. greater than the quantity at which the average total cost reaches its minimum. D. lower than the quantity at which the average total cost reaches its minimum. E. the same as the quantity at which the average fixed cost is at a minimum.

Answers

Bob produces flowers. The average variable cost reaches its minimum at a quantity the same as the quantity at which the average total cost reaches its minimum. The option B is the correct answer.

The average variable cost (AVC) is the cost per unit of the variable input, which is obtained by dividing the total variable cost (TVC) by the total output (Q).

AFC = TFC / Q

The Average Total Cost (ATC) is the total cost per unit of output, which is the sum of the average variable cost and the average fixed cost. ATC = AVC + AFC

Hence, the average total cost will be minimum when the average fixed cost is at the minimum, which is the same as the average variable cost reaching its minimum.

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1. Britain, exporting iron and steel worth about $77 million.

2. Demand for iron and steel increased rapidly with the expansion of railway in England.

3. Britain was importing 2.5 million pounds of raw cotton to feed its cotton industry.

4. Britain import of raw cotton soared to 22 million pounds.​

Answers

The correct order of the events from earliest to latest is:

2. Demand for iron and steel increased rapidly with the expansion of railway in England.

3. Britain was importing 2.5 million pounds of raw cotton to feed its cotton industry.

1. Britain, exporting iron and steel worth about $77 million.

4. Britain's import of raw cotton soared to 22 million pounds.

What is the historical support for these arrangements?

Here is some historical background for each event:

1. The expansion of railways in England began in the early 19th century, with the first steam-powered railway line opening in 1825. The demand for iron and steel increased rapidly during this period to meet the needs of railway construction.

2. Britain was importing raw cotton to feed its cotton industry throughout the 19th century, as the country did not have the climate or conditions to grow cotton domestically.

3. Britain became a major exporter of iron and steel during the late 19th century, as its industrial production capacity expanded and demand for these materials grew worldwide.

4. The import of raw cotton to Britain reached a peak in the mid-19th century, during the height of the country's cotton industry. However, the industry began to decline in the late 19th century due to competition from other countries, such as the United States.

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The complete question goes thus:

Arrange the following events in the ascending year of their occurrence- 1. Britain, exporting iron and steel worth about $77 million. 2. Demand for iron and steel increased rapidly with the expansion of railway in England. 3. Britain was importing 2.5 million pounds of raw cotton to feed its cotton industry. 4. Britain import of raw cotton soared to 22 million pounds.

State three reasons why administration funds score is important for matric learners

Answers

Effective school administration supports student goal setting and academic achievement. 2. Administration Promotes Accountability. Parents select a boarding school because they believe it will provide their child with the best possible education.

What is administration funds score?

Fund administration is the term used to describe the carrying out of back-office tasks for an investment fund, which could be a traditional mutual fund, a hedge fund, a private equity fund, a venture capital fund, a pension fund, a unit trust, or other pooled investment vehicle. These tasks include fund accounting, financial reporting, calculating net asset value, capital calls, distributions, investor communications, and others.

The custodian bank or transfer agent for the fund, for example, are two external, specialized businesses that managers of funds frequently decide to outsource part or all of these tasks to. These businesses are referred to as fund administrators.

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What are the aims of the protesters, and do you think protesting can be an effective method to bring about change?

Answers

The aims of the protesters vary depending on the particular protest, but generally they are seeking to bring about change by raising awareness of an issue and expressing their dissatisfaction with the status quo.

What is awareness?

Awareness is the ability to recognize and understand the facts and information around us. It is the conscious knowledge of a situation or event, and it can be both internal and external. Awareness is an important part of life, as it allows us to process our environment and make informed decisions.

Some protests are non-violent demonstrations of dissent, while others may involve civil disobedience or even property destruction. Whether protesting is an effective method for bringing about change is a matter of debate. Generally, it can be seen as a form of political expression and an opportunity for individuals to join together and express a collective sentiment. However, it is not always clear whether protesting leads to tangible change. It can lead to greater public visibility of an issue, influence public opinion, and even bring about policy reform, but there is no guarantee that this will be the outcome. Ultimately, it depends on the context, the participants, and the goals of the protest.

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