Business, 06.10.2019 10:00 tgentryb60

Malachi only consumes 2 goods: dvd rentals and coffee. his utility function is = ..25, where r is the number of rentals and c is cups of coffee. malachi has $16 in his pocket right now, and he plans to spend all of the $16 on dvd rentals and coffee today. a. the price of one rental is $4 and the price of coffee is $2 per cup. solve for malachi’s optimal bundle. b. suppose that malachi signs up for a membership that reduces the price of a rental to $2, while leaving his income unchanged. find the substitution effect, the income effect, and the total effect of the decrease in the price of video rentals on malachi’s consumption of rentals and coffee. c. from your answer to part (b), are dvd rentals and coffee normal or inferior goods for malachi? explain.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 19:50

Which of the following best explains why treasury bonds have an effect on the size of the money supply? a. the amount of treasury bonds in circulation affects both unemployment and inflation. b. the government can spend more money and charge lower taxes by using treasury bonds. c. the federal reserve bank can buy and sell these bonds to raise or lower bank deposits. d. the interest paid on treasury bonds influences the interest rates charged by private banks. 2b2t

Answers: 1

Answer

Business, 22.06.2019 13:20

Last year, johnson mills had annual revenue of $37,800, cost of goods sold of $23,200, and administrative expenses of $6,300. the firm paid $700 in dividends and had a tax rate of 35 percent. the firm added $2,810 to retained earnings. the firm had no long-term debt. what was the depreciation expense?

Answers: 2

Answer

Business, 22.06.2019 18:10

Why would an investor invest in your stocks

Answers: 1

Answer

Business, 22.06.2019 19:00

Andy purchases only two goods, apples (a) and kumquats (k). he has an income of $125 and can buy apples at $5 per pound and kumquats at $5 per pound. his utility function is u(a, k) = 6a + 2k. what is his marginal utility for apples and his marginal utility for kumquats? andy's marginal utility for apples (mu subscript a) is mu subscript aequals 6 and his marginal utility for kumquats (mu subscript k) is

Answers: 2

Answer

You know the right answer?

Malachi only consumes 2 goods: dvd rentals and coffee. his utility function is = ..25, where r is...

Questions