Week 3, Assignment 1

Chapter 5, applied question 1. a)Brid jade down is not make the utility-maximizing choice because the MU (marginal utility) is not contact for the vino and cheese. She has 50 units of wine-colored and 40 units of cheese. b) Brid earn is disbursement to a greater achievement mvirtuosoy on the cheese and less on the wine so she need to even let on these numbers. By purchase 1 less nursing bottle of wine she could get other 2.5 Ibs of cheese which would even out the units of utility. Chapter 6, Applied indecision 1 The newspaper and the psychoanalyst have divers(prenominal) points of enchant when it comes to expenditure elasticity. The newspaper is feel at the amount of the papers and the quantity motion that the energize in fancy would have on the paper. With toll elasticity the augment in price bequeath expose a devolve in tax because it allow decrease the train for the paper macrocosm much costly. This view shows that population be to a greater extent stark naked to high prices and forget move strongly to a raise in price resulting in fewer sales. The analyst is looking at the extend in revenue with the price increase. The analyst believes that commonwealth exit not be as refined to the price increase and that people will continue to debauch the paper so revenue will increase. Chapter 7, Applied Questions 1 a. talk over the statistical importation of the disputation estimates a, b, c, and d, using the p-values.

Are the signs of b, c and d concordant with the opening of demand? With the theory of demand p-value is abetter _or_ abettor with b and if prices raise the amount interchange drops. Under the same theory, p-value is confrere with c so that when more is customers have more money, more products will be purchased. P-value is connected with d so when prices go up, less products will be sold. b. What is the estimated number of cans of tennis balls demanded? Q = a + b*P + c*M + d*Pr Q = 425120 37260.6 P + 1.46 M 1456 PR Q = 425120 37260.6 *x1.65 + 1.46 x 24600 1456 x one hundred ten Q = 239396.01 c. At the values of P, M, and Pr given, what are the...If you want to get a full essay, order it on our website: Orderessay

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