Draw your indifference curves between nickels and dimes, assuming that you are always willing to trade 2 nickels for 1 dime, or vice versa. What is the marginal value of nickels in terms of dimes?
Answer to relevant QuestionsSuppose that an excise tax of 20¢ apiece and a sales tax of 30¢ apiece are imposed simultaneously. Answer again all of the questions in Exercise.Suppose the demand curve for oranges is given by the equationQ = −200 • P ...Huey consumes only two goods, X and Y. His indifference curves have the usual shape. He prefers basket (1, 3) to basket (2, 2).a. Is it possible to tell whether Huey prefers (1, 3) to (3, 1)?b. Is it possible to tell whether ...Suppose the only good you ever consume is Nestle's Crunch bars. What is your income elasticity of demand for Nestle's Crunch bars? What is your price elasticity of demand for Nestle's Crunch bars?True or False: When price equals marginal cost, profit equals zero.True or False: When all firms in an industry charge the same price, this is evidence of collusion.
Post your question