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Author Question: Suppose that the preferences a typical American has for quantities of electricity (E) and gasoline ... (Read 54 times)

HudsonKB16

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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
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brittrenee

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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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HudsonKB16

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Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review

debra928

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Reply 3 on: Yesterday
:D TYSM

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