Blog

Laura Mussel is a very important client of your consulting company. Her preferences between golf and tennis are represented by U(g, t) = g1/2 + t, where g is the number of rounds of golf and t is the number of tennis matches she plays per week.  The price of g is $1 each and the price of t is $2 each. Laura is planning to spend $11 in total. The optimal amount of tennis matches she should play is:

Diminishing marginal utility occurs when

Assume that food is measured on the horizontal axis and clothing on the vertical axis. If the price of food falls relative to that of clothing, the budget line will: 

  Judith Grimes wants to switch her cellphone carrier to mobile virtual network operator (MVNO). FreedomMobile offers a plan with no monthly service fee and a price of $3 per GB data usage. Judith has a monthly income of $900, and her utility function is U=x1/2g1/2, where x is money spent on other goods and g is the amount of GB data usage. Judith’s budget constraint is x + 3g = 900 The MRS =MUx/MUg of Judith’s utility function is g/x. If Judith chooses FreedomMobile’s plan, at her optimal consumption bundle, she should use [response2] GB data. (please round to integer) Another company, MintMobile offers a plan with a monthly service fee $100 and a price of $1 per GB data usage. If Judith chooses MintMobile’s plan, at her optimal consumption bundle, she should use [response3] GB data. (please round to integer) (The MRS will be the same)      

If indifference curves are concave to the origin, which assumption on preferences is violated?

Along any downward sloping straight-line demand curve:

Charlie’s brother, Alexander, also consumes apples (A) and bananas (B). Alexander’s utility function happens to be U(A, B) = 2A + 2B. (a) Alexander has 40 apples and 5 bananas. The indifference curve through (40, 5) also includes bundle ([response1], 2). Please keep one decimal place.  (b) Alexander has 40 apples and 5 bananas. With this bundle, Alexander would like to give up [response2] apple(s) for a banana. Please keep one decimal place. 

  The demand for a bushel of wheat in 1981 was given by the equation QD = 2700 – 200P.  The supply function is: QS= 1200 + 300P. a. The equilibrium quantity is: [res0] (please round to integer) b.At the equilibrium price, the absolute value of price elasticity of supply is [response1] (please enter the absolute value, please keep two decimal places) (Hint: price elasticity of supply= (dQ/dp)*(p/Q)) c. Now the government provides $1 to the sellers for every bushel sold on the market. What will be the new equilibrium price? $ [r2](please only enter the value, please keep two decimal places)    

True or False: 1) Because of the deltoid site small capacity, IM injections into this site are limited to 1 mL of solution.  2) You are administering medications vaginally. It is important to instruct patient to empty the bladder just before inserting the medication and the patient needs to remain recumbent for at least 10 to 30 minutes after receiving the medications.  4) You are administering eyes drops. You must wait at least 5 minutes before instilling a different type of medication into the eye.

If prices and income in a two-good society all increase by 100%, what will happen to the budget line?