« previous next »

Author Question: Ten individuals have 100 and identical preferences for picnics, p, and kayak trips, k, where U(p, k) ... (Read 307 times)

pepyto

  • Hero Member
  • *****
  • Posts: 547
on: Jul 1, 2018
Ten individuals have 100 and identical preferences for picnics, p, and kayak trips, k, where U(p, k) = k0.5p0.5. The price of picnics is 5 and the price per kayak trip is  10. What is the shortage/surplus in the market when the supply of picnics totals 120?
 
  A) There is a surplus of 20.
  B) There is a shortage of 20.
  C) The market is in equilibrium. Therefore, there is no surplus/shortage.
  D) There is not enough information to answer this question.

Question 2

Sandy derives utility from consuming all other goods, g, and clean air (measured by particulate matter removed per m3), a, as measured by the utility function U(g,a) = g0.6a0.4. The price of all other goods is 20 and the price of clean air (abatement) equals 10. Brian is the only other consumer in the market for clean air and demands 10 units of clean air. What is the market demand for clean air?
 
  A) Total market demand is 14 units of clean air.
  B) Total market demand is 12 units of clean air.
  C) Total market demand is 10 units of clean air.
  D) Total market demand is 16 units of clean air.


chinwesucks

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

pepyto

  • Hero Member
  • *****
  • Posts: 547
Reply #2 on: Jul 1, 2018
Thank you :)


chinwesucks

  • Sr. Member
  • ****
  • Posts: 341
Reply #3 on: Jul 1, 2018
Happy to help you


« previous next »
 

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

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?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Male individuals of the banded Uromastyx, Uromastyx flavofasciata, are different colours. Most natur Male individuals of the banded Uromastyx, Uromastyx flavofasciata, are different colours. Most natur
Female individuals of the banded Uromastyx, Uromastyx flavofasciata, are different colours. Most nat Female individuals of the banded Uromastyx, Uromastyx flavofasciata, are different colours. Most nat
Proportions of the genetic and physical maps are similar but not identical Proportions of the genetic and physical maps are similar but not identical
Although average brain size increases gradually though time in H. erectus, individuals with small br Although average brain size increases gradually though time in H. erectus, individuals with small br
Individuals Who Should Be Vaccinated Against Hepatitis B Individuals Who Should Be Vaccinated Against Hepatitis B
Pathophysiology of celiac disease. In susceptible individuals, gluten-containing foods are digested, ... Pathophysiology of celiac disease. In susceptible individuals, gluten-containing foods are digested, ...
Video: Exercise and cardiac output

For a complete list of videos, visit our video library