Microeconomics (Fall 2011) Problem Set 3 Due in class (Monday, October 3) Please submit your answers on a separate sh...

Get help with any kind of assignment - from a high school essay to a PhD dissertation

  1. Order Custom Essay, Course Work, Research and Term Papers

Microeconomics P Set 3 - In light of the Great Recession

April 14, 2018

Microeconomics (Fall 2011)

Problem Set 3

Due in class (Monday, October 3)

Please submit your answers on a separate sheet(s) of paper with your name, the name of your recitation teacher, and the day and time of your recitation.

1. In light of the Great Recession, suppose that President Obama wants to increase the ability of families to pay for college education. Would you a $5000 income tax rebate differ from a $5000 tax credit for tuition reimbursement? Explain.

2. Gary spends all his money on root beer and beef jerky. When the price of beef jerky decreases, he buys more beef jerky.

a. Does the substitution effect cause him to buy more or less beef jerky? Explain. (If the direction of the effect is ambiguous, say so).

b. Does the income effect cause him to buy more or less beef jerky? Explain. (If the direction of the effect is ambiguous, say so).

3. Sylvester spends all his money on baseball and hockey. Baseball is an inferior good for Sylvester. Does he view hockey as an inferior or a normal good? Why? In a diagram, show a possible income-consumption curve for Sylvester?

4. Doris faces prices for peanut butter and jelly of $1 each. Consumption of the two commodities at various weekly income levels are shown below.

a. Draw the Engel curves for peanut butter and jelly.

Income

Peanut Butter

Jelly

$15

7

15

20

13

21

25

20

30

b. What is the income elasticity of peanut butter as for Doris as income increases from $15 to $20?

4. Rohit views the New Yorker and morning coffee as perfect complements. In his first year in NYC, he picks an optimal bundle of the New Yorker and morning coffee, E1. In his second year, inflation occurs, the prices of the New Yorker and morning coffee change by different amounts, and he receives a cost of living adjustment (COLA) from NYU based on the consumer price index (CPI) for these two goods. After the price changes and he receives the COLA, his new optimal bundle is E2. Show the two points, E1 and E2 in a figure. Is he better off, worse off, or equally well off at E2 compared to E1? Explain.

5. Suppose that Juan’s demand for cigarettes is described by the equation Q=10 - 0.2p. If each pack of cigarettes costs $5, how many packs will Juan buy? What is the price elasticity of demand for cigarettes at this point? Is demand elastic or inelastic? Explain your answer.










OUR SERVICE CHARTER






  • Excellent Quality Work

    Grammar is one of the elements that we take seriously in our service delivery. Beside the use of spell checkers, we progressively take our writers through the essentials of a quality paper that features information clarity. Importantly, we encourage our writers to avoid coming up with a paper that deviates from the elements that appear on the client’s instruction brief. It means that the papers that we deliver denote well researched information that is rich in details. Additionally, the papers usually contain exhaustive details on any instruction that a client submitted. It is the tireless application of our writers’ efforts that makes us stand out when it comes to the delivery of excellent quality work. Notably, our writers use quality resources when digging up information that a paper requires. They are usually aware of the sources that contain rich information. Our past clients have proved that we give nothing short of quality work through giving us a positive feedback.

  • Free Revisions

    The papers that we deliver usually reflect a high quality level. However, there is always a room for any additional fine-tuning touch in line with a client’s preference without any additional charges. To begin with, a client has discretion to make a choice on their preferred top writer from our team. Such a writer could have handled past work for the client and received a positive review from the same. It means that the client has confidence of the quality of service that the writer delivers. Secondly, a client has an option of making use of our editing services. Our editors are always on standby to revise the paper and ensure that it matches with the expectations of a client that the instruction brief had detailed. The revision covers content adjustment that removes off-topic details, addition of sources, removal of language style errors, and assessment of the referencing style in order to enhance compliance.

  • 100% Plagiarism-Free Guarantee

    We deliver top-quality essays through employing various measures that seek to improve the content of a given assignment. One of the quality-control systems that we use entails plagiarism checkers. These systems help us to deliver a 100% plagiarism-free papers to our clients. We also value the originality of papers, and we do not resell any submitted paper. It means that every client always gets a unique paper. Additionally, our perfect team of writers is usually keen on the academic writing standards as well as the instructions brief that a client submits. Our team of writers holds matchless competence when it comes to its service delivery. Every member of the team usually has an academic degree, and the team’s diversified skills make it possible for us to have a qualified writer in any client’s area of study. Additionally, our past clients have always given a positive feedback on each of our writers.

  • Professional Academic Writers

    An academic degree is one of the qualifications that our writers hold. This is only a minimum requirement that we ask from our writers, but the team also has writers who possess higher educational credentials. It means that the team comprises of competent writers who have gone through institutions of higher learning and passed their exams. Subsequently, the writers have a good grasp of what our clients require. It is notable that our writers not only want to apply their acquired knowledge, but they are also willing to help our clients to outperform them. This is a clear indication of a team that is willing to walk an extra mile. We uphold professionalism in our operations, and our clients should look forward to receive services from a team of experts. It is the spirit of value addition that makes us to scale any heights in order to deliver and outperform our clients’ expectations.




Related Questions