graphically illustrate the impact of these factors on the North-American equilibrium price and quantity of rare-earth elements. You must clearly identify the initial equilibrium‚ the new equilibrium‚ and properly label both axes and all lines in your graph. Question 3 (10 marks) The Vancouver 2010 torchbearer red mittens sold by the Hudson’s Bay Company for $10 per pair are the must-have mementos of this year’s
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LAW OF DIMINISHING MARGINAL UTILITY: The law of diminishing marginal utility describes a familiar and fundamental tendency of humanbehavior. The law of diminishing marginal utility states that: “As a consumer consumes more and more units of a specific commodity‚ the utility from the successiveunits goes on diminishing”. Mr. H. Gossen‚ a German economist‚ was first to explain this law in 1854. Alfred Marshal later onrestated this law in the following words: “The additional benefit which a person
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X rose to $4 and the price of Y rose to $9‚ how much would Murphy’s income have to rise so that he could still afford his original bundle? a. $700 b. $450 c. $350 d. $1‚050 5. Charlie has the utility function U(xA‚ xB) = xAxB. His indifference curve passing through 15 apples and 16 bananas will also pass through the point where he consumes 3 apples and a. 40 bananas. b. 83 bananas. c. 20 bananas. d. 87 bananas. e. 80 bananas. 1 6. Harmon’s utility function is U(x1‚ x2) =
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中级微观经济学 参考书： Hal R. Varian. Intermediate Microeconomics‚ A Modern Approach. W. W. Norton & Company‚ Inc. 1 BUDGET CONSTRAINT Consumer theory ---- how consumers buy their goods? Economists assume: consumers choose the best bundle of goods they can afford. Two aspects: ----Consumers choose the most preferred goods. ----They are limited by economic condition. The Budget Constraint Consumption bundles: （消费束，商品组合）: a list of numbers of
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following examples‚ a consumer purchases just two goods: x and y. Based on the information in each of the following parts‚ sketch a plausible set of indi¤erence curves (that is‚ draw at least two curves on a set of labeled axes‚ and indicate the direction of higher utility). Also‚ write down a utility function u(x; y) consistent with your graph. Note that although all these preferences should be assumed to be complete and transitive (as required for utility representation)‚ not all will be monotone
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viii Hence 1=1; [pic][pic]………………………………….ix [pic]…………………………………….x The ordinal utility theory uses the indifference curves(IC) to analyze the equilibrium condition of the consumer. Y IC X The consumer aims at consuming at the highest indifference curve. The furthest IC from the origin presents the highest satisfaction of two commodities‚ but is constrained by
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TIGER AIRWAYS V/S SINGAPORE AIRLINES Tiger Airways and Singapore airlines are two leading airlines in the Singapore region and I would be analyzing the market strategies applied by these to attract the customers. The two parameter to be compared will be 1) Cost Vs Luxury C IC 1 IC 2 C O O S S T T ’ BB’>AA’ A’ A A BB’<AA’ A’
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Question 1 0 out of 2 points | | | Opportunistic behavior on the part of the employer is possible because:Answer | | | | | Selected Answer: | employees often reduce their effort level if they are important to the company. | Correct Answer: | contracts are often incomplete and leave room for implicit understandings between the two parties. | | | | | Question 2 0 out of 2 points | | | In long-term job attachments‚ a worker’s wage:Answer | | | | | Selected Answer:
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Herriges (ISU) Chapter 10: The Rational Consumer Fall 2010 1 / 28 Outline 1 Utility: Getting Satisfaction 2 Budgets and Optimal Consumption 3 The Optimal Consumption Choice 4 Spending the Marginal Dollar 5 From Utility to the Demand Curve Herriges (ISU) Chapter 10: The Rational Consumer Fall 2010 2 / 28 The Rational Consumer One of the key assumptions underlying economics is the concept of the rational consumer Herriges (ISU) Chapter 10: The Rational Consumer Fall 2010 3 /
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Deriving Demand Functions - Examples1 What follows are some examples of different preference relations and their respective demand functions. In all the following examples‚ assume we have two goods x1 and x2 ‚ with respective prices p1 and p2 ‚ and income m. 1 Perfect Substitutes For perfect substitutes‚ we have to look at respective prices. After all‚ if goods are perfect substitutes‚ then the consumer is indifferent between them‚ and will have no problem adjusting consumption to get
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