The cross-price elasticity values for three sets of products are listed in the table below. What can you conclude about the relationships between each of these sets of products?

Income elasticity of demand measures the responsive-ness of demand to changes in income. Explain what is happening to demand and what kind of good is being represented in the following situations. a. Income is rising, and income elasticity of demand is positive.b. Income is rising, and income elasticity of demand is negative.c. Income is falling,

Sketch the following budget constraints:

Kristine is a fan of both romantic movies and classical concerts. This month she has $480 to spend on the two activities. The original budget constraint is shown in the graph below. Let X represent romantic movies and Y rep-resent classical concerts. a. What is the equation of the original budget constraint? b. What is

The following table gives a hypothetical total utility schedule for the Cookie Monster (CM): Calculate the CM’s marginal utility schedule. Draw a graph of total and marginal utility. If cookies cost the CM 5 cents each and CM had a good income, what is the maximum number of cookies he would most likely eat in

Duty charges and VAT on alcohol vary across different parts of Europe. For example, a bottle of wine bought in Britain incurs a £1.90 duty charge and 20 percent in VAT. A bottle of wine in Italy incurs no duty charge, but slightly higher VAT at 22 percent. (See http://i.telegraph.co.uk/multimedia/archive/03306/taxes_3306215b.jpg for rates across Europe). Assume

For this problem, assume that Kendrick has $144 to spend on cigars and brandy each month and that both goods must be purchased whole (no fractional units). Cigars cost $6 each, and brandy costs $30 per bottle. Kendrick’s preferences for cigars and brandy are summarized by the following information: a. Fill in the figures for

The table shows Darlene’s marginal utility numbers for ice cream sundaes and milkshakes. Darlene is trying to decide which item to purchase first, a sundae or a milk-shake, knowing that she wants to receive the most utility for each dollar she spends. Assuming she has enough money in her budget to purchase either item, which

Jonas is a German native who has lived for the past 4 years in the UK pursuing his undergraduate study in Economics. For each of the last 4 years, he has made trips back to Germany for Christmas, Easter and the summer. During 2015, the price of a round-trip train ticket from London to Frankfurt

The following table gives total output or total product as a function of labor units used. a. Define diminishing returns.b. Does the table indicate a situation of diminishing returns? Explain your answer.