Question

a)Explain what determines the optimum level of consumption for an individual consumer (b)'The consumer is king'...

a)Explain what determines the optimum level of consumption for an individual consumer

(b)'The consumer is king' (P.Samuelson). To what extent is this a fair description of the consumer's power in the market place?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Each individual consumer takes the prices as given and chooses her consumption bundle,(x1,x2)ER^2, by maximizing the...
Each individual consumer takes the prices as given and chooses her consumption bundle,(x1,x2)ER^2, by maximizing the utility function: U(x1,x2) = ln(x1^3,x2^3), subject to the budget constraint p1*x1+p2*x2 = 1000 a) write out the Lagrangian function for the consumer's problem b) write out the system of first-order conditions for the consumer's problem c) solve the system of first-order conditions to find the optimal values of x1, x2. your answer might depend on p1 and p2. d) check if the critical point...
The point on an indifference curve represent consumption bundles among which the consumer is ________ or...
The point on an indifference curve represent consumption bundles among which the consumer is ________ or all consumption bundles are _________. Recall the law of demand. How can this be shown using indifference curves? (Hint: what conditions do we need to hold constant? What changes?) With commodity X on the horizontal axis and commodity Y on the vertical axis, a change in the slope of the budget line from -7/2 to -3/2, according to indifference curve analysis, will cause the...
Consumer surplus for one individual is equal to what? The difference between the selling price and...
Consumer surplus for one individual is equal to what? The difference between the selling price and market price, multiplied by the number of goods purchased. The total number of goods purchased by that individual multiplied by the difference between the market price and the production cost. The area between the demand curve and the supply curve, for that individual. The total area between the demand curve and the market price. The difference between the price that individual is willing to...
In the labor-leisure model, the representative consumer receives satisfaction from consumption of goods (C) and from...
In the labor-leisure model, the representative consumer receives satisfaction from consumption of goods (C) and from the consumption of Leisure (L). Let C be the composite good with price $1 and L determines the number of hours of leisure this person consumes. Therefore U = f(C,L) for this consumer. This consumer’s consumption is constrained by time and income. Let her non-labor income, V, be $1200 per week, let the hourly wage rate be $8 and h be the number of...
11 explain the determinants of planned consumption what will cause a shift in the consumption function...
11 explain the determinants of planned consumption what will cause a shift in the consumption function 12 how is the equilibrium national income {output} determined? explain using the Keynesian cross 13 derve the aggregate demand from the equilibrium level of income or output 22 briefly discuss the domestic agricultural policies which provide food security and stabilize the agricultural market
Q.16. The limit on the consumption bundles that a consumer can afford is known as o...
Q.16. The limit on the consumption bundles that a consumer can afford is known as o A. An indifference curve o B. The marginal rate of substitution o C. The budget constraint o D. The consumption limit Q.17. Suppose a consumer must choose between the consumption of sandwiches and pizza. If we measure the quantity of pizza on the horizontal axis and the quantity of sandwiches on the vertical axis, and if the price of pizza is $10 and the...
Suppose that King Julien of Lemurland asks you to construct a consumer price index. Based on...
Suppose that King Julien of Lemurland asks you to construct a consumer price index. Based on your research you choose a market basket that contains 3,000 yams and 2000 coconuts. Suppose further that the prices of each good from 2014 – 2016 are as follows: Base year is 2014. Year Price of Yams Price of Coconuts 2014 1.50 2.00 2015 1.75 2.20 2016 1.84 2.25 A. What is the CPI for each year? B. Based on the data, what is...
(a) Explain the differences and similarities among the concepts of intensity, sound level, and power. (b)...
(a) Explain the differences and similarities among the concepts of intensity, sound level, and power. (b) What happens to intensity as the source of sound moves closer to the observer? (c) What happens to sound level? And (d) what happens to power?
state and explain the four principles of consumption function by keynes b) given the following information...
state and explain the four principles of consumption function by keynes b) given the following information on a small closed economy C=1000-0.75Yd,Yd= disposable income I =100 G=200 Y=160 i) solve the goods market equilibrium (y,c and Yd); ii) what is the value of marginal propensity to consume iii) find the multiplier at the level of autonomous spending iv) what will be the increase in national income if investment increases by 50
Regarding cooperation and altruism... Part A: Why is cooperative behavior easier to explain purely with individual-level...
Regarding cooperation and altruism... Part A: Why is cooperative behavior easier to explain purely with individual-level fitness than altruistic behavior is? Part B: What circumstances DO favor the evolution of altruistic behavior?