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 73 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

billybob123

  • Member
  • Posts: 336
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

The Canadian ballot is considerably simpler than the American ballot. Note there is nothing like a c The Canadian ballot is considerably simpler than the American ballot. Note there is nothing like a c
Russel Wright, American Modern dinnerware. Russel Wright, American Modern dinnerware.
There is no such thing as the African American family, any more than there is the Native American, ... There is no such thing as the African American family, any more than there is the Native American, ...
The typical placement of electrodes around the eye for electrooculography. The two electrooculogram ... The typical placement of electrodes around the eye for electrooculography. The two electrooculogram ...
Typical sequence of tooth eruption for both deciduous and permanent teeth Typical sequence of tooth eruption for both deciduous and permanent teeth
American Government: Roots and Reform, 2009 Edition American Government: Roots and Reform, 2009 Edition
Video: Gastrin (protein digestion)

For a complete list of videos, visit our video library