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

Author Question: When your budget line is just tangent to your indifference curve, you are at your best affordable ... (Read 112 times)

Chelseaamend

  • Hero Member
  • *****
  • Posts: 545
on: Jun 29, 2018
When your budget line is just tangent to your indifference curve, you are at your best affordable point.
 
  Indicate whether the statement is true or false

Question 2

Suppose that the price elasticity of demand for snow shovels is 1.2 . What would have to happen to the price of a snow shovel for the quantity demanded to fall from 2,000 to 1,800? Use the midpoint formula in your calculations.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Madisongo23

  • Sr. Member
  • ****
  • Posts: 325
Reply #1 on: Jun 29, 2018
Answer to Question 1

TRUE

Answer to Question 2

percentage change in quantity demanded = 1,800  2,000/1,900 = -200/1,900
= -10.5.
-10.5/percentage change in price = -1.2

Therefore, the price of snow shovels must rise by 8.75 percent.


Chelseaamend

  • Member
  • Posts: 545
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

bigcheese9

  • Member
  • Posts: 333
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

The line that has the yellow tag is a highpressure line and this line must be replaced with a new ... The line that has the yellow tag is a highpressure line and this line must be replaced with a new ...
The slope of the curve y = ax^3 - bx^2 + cx - 3 at x = 2 is 5. If the point of inflection of the cur The slope of the curve y = ax^3 - bx^2 + cx - 3 at x = 2 is 5. If the point of inflection of the cur
Find the equation of the normal line to f(x)=sinx+cosx at x = π. Find the equation of the normal line to f(x)=sinx+cosx at x = π.
The line with the equation y=5x+12 intersects the parabola with equation y=xsqared+7x-3 at the ... The line with the equation y=5x+12 intersects the parabola with equation y=xsqared+7x-3 at the ...
Saturation curve for hemoglobin of humans, llamas, and other mammals. Saturation curve for hemoglobin of humans, llamas, and other mammals.
Offset Method Plot of Land with Length Line Offset Method Plot of Land with Length Line
Video: Natural Selection, Species Isolation and Real World Example

For a complete list of videos, visit our video library