(Solved):According to situational influences on consumer behavior, which of the following tops the list of ways consumers use their mobile phones in stores? a. price checks and comparisons b. scan a QR code… View Answer

According to situational influences on consumer behavior, which of the following tops the list of ways consumers use their mobile phones in stores?

a. price checks and comparisons

b. scan a QR code

c. research products or product information

d. access specific retailer app e. access or download digital coupons

(Solved):Suppose there is a shift in the representative consumer’s preference, namely, the consumer prefers, given the market real interest rate, to consume less current Leisure and more current consumption… View Answer

Suppose there is a shift in the representative consumer’s preference, namely, the consumer prefers, given the market real interest rate, to consume less current Leisure and more current consumption goods.

Determine the effect of this on current aggregate output, current employment, the current real wage, current consumption, and current investment. Explain your results by referring to possible shifts in the curves describing the labour market equilibrium and the goods market equilibrium

(Solved):Assume that Carson has two choices to satisfy the increased demand for its products. It could increase production by 10 percent with its existing facilities by obtaining short-term financing to cov… View Answer

Assume that Carson has two choices to satisfy the increased demand for its products. It could increase production by 10 percent with its existing facilities by obtaining short-term financing to cover the extra production expense and then using a portion of the revenue received to finance this level of production in the future. Alternatively, it could issue bonds and use the proceeds to buy a larger facility that would allow for 50 percent more capacity. Which alternative should Carson select?

(Solved):Armando’s preferences over goods can be represented by the following utility function: Armando faces prices and has income a. Find Armados’s Marshallian demand functions, View Answer

Armando’s preferences over goods x=(x1,x2)x=(x1,x2) can be represented by the following utility function:

u(x)=ln(x1−b)+ln(x2)u(x)=ln(x1−b)+ln(x2)

Armando faces prices p=(p1,p2)>>0p=(p1,p2)>>0 and has income m>p1b>0m>p1b>0.

a. Find Armados’s Marshallian demand functions, x1(p,m)x1(p,m) and x2(p,m)x2(p,m). Why is it important that m>p1bm>p1b? What is the interpretations of the coefficient b? Do the demand functions satisfy the relevant homogeneity conditions? Derive the indirect utility function v(p,w)v(p,w).

b. Using your results from part (a), show that the expenditure function is

e(p,u)=2eu/2p1/21p1/22+bp1e(p,u)=2eu/2p11/2p21/2+bp1

From the expenditure function, derive the Hicksian demand functions h1(p,u)h1(p,u) and h2(p,u)h2(p,u). Do the Hicksian demand functions satisfy their relevant homogeneity conditions??

(Solved):A large number of economic and psychological studies demonstrate, that people who are impatient in one area of their life, tend to be impatient in other areas, as well. This isn’t true in every sin… View Answer

A large number of economic and psychological studies demonstrate, that people who are impatient in one area of their life, tend to be impatient in other areas, as well. This isn’t true in every single case, but of course, that doesn’t matter if we’re trying to understand the typical person. Based on your general knowledge and educated guessing:

a. Who is more likely to smoke: a criminal or a law-abiding citizen?

b. Who is more likely to shoot heroin: a person who saves 20% of their income, or a person who can’t ever find a way to save?

c. Who is more likely to have a lot of credit card debt: a smoker or a nonsmoker?

(Solved):Suppose that a glass of acai berry juice at Ana’s gym cafeteria costs as much as a can of soda. Ana knows that while acai berry juice improves health by providing important vitamins, soda drinks co… View Answer

Suppose that a glass of acai berry juice at Ana’s gym cafeteria costs as much as a can of soda. Ana knows that while acai berry juice improves health by providing important vitamins, soda drinks contain artificial ingredients and too much sugar, which causes diabetes. Ana is thirsty and buys herself a glass of juice. How might economic theory explain Ana’s choice?

a. Ana bought juice because her friend was having it.

b. Ana probably has been drinking too much soda lately and would like to have a different drink this time around.

c. Because Ana has a limited income, she buys more juice and less soda.

d. As juice and soda cost the same, Ana buys the drink that she expects will yield her the greatest benefit.

Suppose now that Ana is indifferent between juice and soda. She is thirsty and soda is more expensive than juice. Economic theory predicts that Ana will buy _.