3 years ago

If the marginal propensity to consume is 0.8, (a) what is the value of the multiplier?

1 answer:

7 0

Given the marginal propensity to consume (MPC), the miltiplier is given by

Multiplier = 1 / (1 - MPC)

Given that the marginal propensity to consume is 0.8, the multiplier is given by

Multiplier = 1 / (1 - 0.8) = 1 / 0.2 = 5

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Ben and jerry’s sells 2 times more ice cream cones ($2) than shakes ($9). If last month’s sales totaled $3,900, how many of each

lyudmila [28]

Lets say Ben and Jerry sold 'x' number of shakes.

If they have sold 'x' number of shakes then they must have sold $2\times x=2x$ number of cones.

Now, each ice cream cone costs $2.00 and each shake costs $9.00.

Last month the total sale totaled $3,900.00

Now,

The equation to represent the relation between the total sales and number of ice cream cons, number of shakes sold is given by:

$2\times x(2x)+9\times (x)=3900$

$4x+9x=3900$

$13x=3900$

Solving for 'x' we get:

$x=\frac{3900}{13} =300$

We had assumed that 'x' number of shakes were sold, therefore we know that 300 shakes were sold and $2\times x$ numbers of cones were sold which means $2 \times 300=600$ ice cream cones were sold.