Something smells peculiar... Oh it IS cheese

Diogo has a utility function,U(q1, q2) = q1 0.8 q2 0.2,where q1 is chocolate candy and q2 is slices of pie. If the price of slic

guapka [62]

Answer:

$(0.5 \times 8q_2)+q_2=100\\\\5q_2=100\\\\q_2=20$

since $q_2 = 20$

$q_1 = 8*20\\\\q_1=160$

Explanation:

U(q₁ q₂)

$q_1^{0.8}q_2^{0.2}\\\\P_1= \$0.5 \ P_2=\$1 \ Y=100$

Budget law can be given by

$P_1q_1+P_2q_2=Y\\\\0.5q_1+q_2=100$

Lagrangian function can be given by

$L=q_1^{0.8}q_2^{0.2}+ \lambda (100-0.5q_1-q_2)$

First order condition csn be given by

$\frac{dL}{dq} =0.8q_1^{-0.2}q_2^{0.2}-0.5 \lambda=0\\\\0.5 \lambda=0.8q_1^{-0.2}q_2^{0.2}---(i)$

$\frac{dL}{dq} =0.2q_1^{0.8}q_2^{-0.8}- \lambda=0\\\\ \lambda=0.2q_1^{0.8}q_2^{-0.8}---(ii)$

$\frac{dL}{d \lambda} =100-0.5q_1-q_2=0\\\\0.5q_1+q_2=100---(iii)$

From eqn (i) and eqn (ii) we have

$\frac{0.5 \lambda}{\lambda} =\frac{0.8q_1^{-0.2}q_2^{0.2}}{0.2q_1^{0.8}q_2^{-0.8}} \\\\0.5=\frac{4q_2}{q_1}\\\\q_1=8q_2}$

Putting $q_1=8q_2$ in euqtion (iii) we have

$(0.5 \times 8q_2)+q_2=100\\\\5q_2=100\\\\q_2=20$

since $q_2 = 20$

$q_1 = 8*20\\\\q_1=160$

3 0

3 years ago

Regarding the present value of an annuity, the present value of an annuity due will always be worth less compared to the present

KATRIN_1 [288]

Answer: false

Explanation:

Annuity due is an annuity whereby the payment is normally due at the beginning of every period which can be annually, semi annually, monthly, or quarterly. Examples of payments with annuity due include rents and, leases.

In ordinary annuity, the main difference is that the payments have to be made at the end of every period.

It should be noted that the present value of an annuity due is typically worth more when it is compared to the present value of ordinary annuity.

5 0

3 years ago

Suzanne, a single taxpayer, operates a printing business as a sole proprietor. The business has two employees who are paid a tot

Akimi4 [234]

Answer:

ANSWER = LOWER OF ABOVE ( i.e. POINT 1 AND 4) = $30,000

Explanation:

1) WE ASSUME THAT SUZANNE'S BUSINESS INCOME IS SAME AS QUALIFIED BUSINESS INCOME (QBI) i.e.$150,000.

CALCULATION OF QBI DEDUCTION:-

1) 20% OF QBI (OR TAXABLE INCOME IF LOWER) = $30,000

{$150000*20% = $30,000)

2)50% OF WAGES ($90,000 * 50%) = $45,000

3) 25% OF WAGES + 2.5% OF ASSETS = $22,500

4) GREATER OF POINT 2 AND 3 = $45,000

ANSWER = LOWER OF ABOVE ( i.e. POINT 1 AND 4) = $30,000

6 0

3 years ago

Automatic stabilizers refer to:

Aliun [14]

Answer:

B) government spending and taxes that automatically increase or decrease along with the business cycle.

Explanation:

The two most common automatic stabilizers are: income taxes and unemployment benefits.

When the economy is strong, people make more money, and income tax revenue automatically increases.

On the contrary, when the economy is weak, or in recession, people earn less, and more of them are unemployed. Unemployment benefits therefore increase accordingly.

4 0

3 years ago

Whats the difference between the salary and hourly calculator? pleaseeee helpp

Bingel [31]

The main difference between the salary and hourly calculator is that the salary calculator is paid to an employee on the basis of an annual amount that is known as salary and hourly calculator is based on the hourly payment. This is the basic difference between the salary and hourly calculator. For a salaried employee, the number of hours worked in a month can vary without affecting the total salary fixed. In case of hourly calculated payment, the number of hours worked has a direct impact on the payment received. If the number of hours worked is less then the hourly calculated payment will also be less.

5 0

3 years ago