This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose that the preferences a typical American has for quantities of electricity (E) and gasoline ... (Read 16 times)

HudsonKB16

  • Hero Member
  • *****
  • Posts: 535
on: Jul 1, 2018
Suppose that the preferences a typical American has for quantities of electricity (E) and gasoline (G) is given by U(E,G) = a ln(E) + (1 - a) ln(G) where 0 < a < 1.
 
  Suppose the prices of gasoline and electricity in the units provided are both 1/unit and the consumer has an income of 100. Suppose in addition, the government has chosen to ration electricity by allowing a maximum consumption of 50 units of electricity (E  50). a. If a = .25, find the optimal consumption bundle of gasoline and electricity. Does the electricity rationing constraint have an influence on consumer's choice? b. If a = .75, find the optimal consumption bundle of gasoline and electricity. Does the electricity rationing constraint of the government have an influence on the consumer?

Question 2

The above figure depicts the Edgeworth box for two individuals, Al and Bruce. If the endowment is at point a, and Bruce has no ability to bargain, the final allocation will be at point
 
  A) a.
  B) b.
  C) c.
  D) d.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

brittrenee

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jul 1, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 50% of students answer this correctly


HudsonKB16

  • Member
  • Posts: 535
Reply 2 on: Jul 1, 2018
Excellent

steff9894

  • Member
  • Posts: 337
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

The FDA recognizes 118 routes of administration.

The breeding and wintering grounds of the American redstart, Setophaga ruticilla. The breeding and wintering grounds of the American redstart, Setophaga ruticilla.
American red squirrel American red squirrel
A flex-fuel vehicle often has a yellow gas cap, which is labeled “E85/gasoline”. A flex-fuel vehicle often has a yellow gas cap, which is labeled “E85/gasoline”.
A typical battery load tester hookup. A typical battery load tester hookup.
A typical J2534 universal reprogrammer that uses the J2534 standards. A typical J2534 universal reprogrammer that uses the J2534 standards.
Typical Night’s Sleep for a Young Adult Typical Night’s Sleep for a Young Adult
Video: Stimulus (introduction)

For a complete list of videos, visit our video library