saigeg3784 saigeg3784

05-10-2022
Business

Answered

when the price of bananas is $1 per pound while the price of apples is $2 per pound, angela consumes 6 bananas and 4 apples. a new pesticide causes the supply of apples to significantly increase, which sharply decreases their price to $1 per pound. angela’s new optimal consumption bundle after the price change consists of 4 bananas and 10 apples. we also know that the bundle of goods that would have been chosen at the new prices while maintaining angela’s utility experienced before the price change is 5 bananas and 6 apples. what is the income effect of the chnge in the price of apples on angela’s consumption of apples?

Answer :

Other Questions

on monday morning, an investor takes a long position in a pound futures contract that matures on wednesday afternoon. the agreed-upon price is $1.78 for £62,500

in the long run, when factors are mobile, an increase in the relative price of a good will increase the real earnings of the factor used intensively in the prod

a customer writes an xyz june 60 straddle for a 5-point premium. at expiration, the market price of xyz is 50 and the put side is exercised. the customer then s

a rich relative has bequeathed you a growing perpetuity. the first payment will occur in a year and will be . each year after that, you will receive a payment

pellagia is a nationwide retail chain specializing in women’s apparel. the company has 135 million shares outstanding, 30 percent of which are publicly traded w

the purpose of this homework is to develop your own spreadsheet on constant payment mortgage (the most popular type of fixed rate mortgage) that can calculate i

during the current year, merchandise is sold for $237,500 cash and $625,000 on account. the cost of the goods sold is $422,300. what is the amount of the gross

calculate the price of a zero-coupon bond that matures in 16 years if the market interest rate is 5.4 percent. assume semiannual compounding. note: do not round

the calculation of income omits certain gains and losses that are instead included in the broader perspective of other income. (enter one word per blank.)

tony’s favorite memories of his childhood were the times he spent with his dad at camp. tony was daydreaming of those days a bit as he and suzie jogged along a