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Author Question: An individual derives utility from consuming all other goods, g, and clean air (measured by the ... (Read 92 times)

segrsyd

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on: Jul 1, 2018
An individual derives utility from consuming all other goods, g, and clean air (measured by the reduction in particulate matter per m3), a, as measured by the utility function U(g,a) = g0.6a0.4. The price of consumer goods equals 20 and the price of clean air (abatement) equals 10. What is the slope of the Engel curve when income increases from 100 to 200?
 
  A) The slope is 25.
  B) The slope is -25.
  C) The slope is zero.
  D) The slope is infinite.

Question 2

If consumer income and prices increase by the same percentage,
 
  A) the consumer will buy more of both goods.
  B) the consumer will buy more of both goods if they are both normal goods.
  C) the consumer will buy less of both goods if they are both inferior goods.
  D) the consumer's utility maximizing bundle stays the same.
Microeconomics ¦ Perloff ¦ 8th Edition
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mjbamaung

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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.
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segrsyd

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Reply 2 on: Jul 1, 2018
Excellent

tuate

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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