Which is more preferred between a cash gift and an in-kind gift? a Both are equa
ID: 1225206 • Letter: W
Question
Which is more preferred between a cash gift and an in-kind gift? a Both are equally preferred, b. An in-kind gift, c. A cash gift, d None of the statements is correct. What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and P_x = $10. P_y = $20, X = 0. and M = 400? a.20 b.10 c.5 d.0 Along the same indifference curve. MRS is as more of one good is obtained. a increasing b. decreasing c varying irregularly d. constant The consumer s optimal consumption of X and Y is characterized by: a. (MU_x)(MU_Y) = pXpY b. MU_x IMUy = Px/Py c MUxIMUy = Py/Px d. MU_X = P_X e. MU_X IP_Y = MU_X IP_X If the price of good X increases, what will happen to the budget line? a. it will shift outward. b. It will become flatter, c. It will become steeper, d. it will shift inward. Given that income is $300. the price of good Y is $15. and the price of good X is $20. what is the vertical intercept of the budget line? a. 20 b. 15 c. 300 d. 4, 500 Suppose that three consumers are in the market for good X. Consumer 1's (inverse) demand is P_x = 20 - Q_X: Consumer 2's (inverse) demand is P_X = 20 - 2Q_X: and Consumer 3's (inverse) demand is P_x = 20 - 4Q_x. When P_x = $10. the market will demand: a. 17.5 units and the inverse market demand curve is P_X = 60 - 7Qx-o b. -30 units and the inverse market demand curve is Px = 60 - 7Qx-o c. 17.5 units and the inverse market demand curve is Px = 20 - 0.5714Qx. d None of the statements is correct.Explanation / Answer
4. c) a cash gift because it is used in any way and person is not restricted to spend it anyway. Gift in kind restrict the person for the use of given resource only
5. Budget line: Px. X + Py. Y = M
10 (0) + 20 Y = 400
20Y = 400
Y = 20
Answer is a) 20
6. b) decreasing
7. b) MUX/MUY = PX/PY
8. c) It will become steeper because consumption of good X decreases.
9. Vertical intercept = M/PY = 300/15 = 20
Answer is a) 20
10. a) 17.5 units and the inverse market demand function is Px = 60 - 7Qx
Inverse market demand function: Px = (20 - Qx) + (20 - 2Qx) + (20 - 4Qx) = 60 - 7Qx
When Px = 10 it implies: 10 = 20 - Qx implies Qx = 10 units
10 = 20 - 2Qx implies Qx = 5 units
10 = 20 - 4Qx implies Qx = 2.5 units
So, Qx = 10 + 5 + 2.5 = 17.5 units
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.