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 17 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
Thanks for the timely response, appreciate it

dreamfighter72

  • Member
  • Posts: 355
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Juvenile American alligator swimming, showing the distinctive yellow striping found on juveniles Juvenile American alligator swimming, showing the distinctive yellow striping found on juveniles
Typical hand deformities associated with rheumatoid arthritis. Typical hand deformities associated with rheumatoid arthritis.
E10 is 10% ethanol and 90% gasoline. E10 is 10% ethanol and 90% gasoline.
A typical open-end wrench. Note the size difference on each end and that the head is angled 15 ... A typical open-end wrench. Note the size difference on each end and that the head is angled 15 ...
Structures of a few typical eukaryotic promoters Structures of a few typical eukaryotic promoters
A typical intertidal zone A typical intertidal zone
Video: Effect of the environment on coat color in the Himalayan rabbit Animation

For a complete list of videos, visit our video library