Microeconomics questions and answers in July 2021

A consumer is in equilibrium and is spending income in such a way that the marginal utility of product X is 20 units and that of Y is 35 units. If the unit price of X is $4, then the price of Y must b...
Huxley lost $60 in the stock market. According to behavioral economics research, how much of a gain would he have to experience to offset the feeling of loss and have no net change in utility? Multipl...
How is it possible that a firm in a perfectly competitive market is able to sell all it wants without having to change the price? What does this tell us about the elasticity of demand faced by the fir...
5. Comparative Advantage The following table describes the production possibilities of two cities in the country of Baseballia: Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker p...
Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A proposed public good has a total cost of $1,000. All five citizens will share an equal portion of this cost in taxes...
Answer the question based on the following information for a public good.  P a  and  P b  are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than...
4. Production Possibility Frontier An economy consists of three workers: Kevin, Rajiv, and Yakov. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Kev...
4. Production Possibility Frontier An economy consists of three workers: Bob, Eric, and Kenji. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Bob ca...
5. Comparative Advantage The following table describes the production possibilities of two cities in the country of Baseballia: Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker p...