How will your answers to Problem 2 differ if 5 units of Ernie’s clothing endowment are given to Bert?
Answer to relevant QuestionsThe meal plan at University A lets students eat as much as they like for a fixed fee of $500 per semester. The average student there eats 250 lb of food per semester. University B charges students $500 for a book of meal ...Suppose Sarah has an endowment of 2 units of X and 4 units of Y and has in-difference curves that satisfy our four basic assumptions (see Chapter 3). Sup-pose Brian has an endowment of 4 units of X and 2 units of Y, and has ...Now suppose a trading ship visits the island each day and offers to buy or sell food and clothing at the prices PF = 4, PC = 1. How, if at all, will the presence of this ship alter the production and consumption decisions of ...Why are the individual willingness-to-pay curves added vertically, not horizontally, to get the aggregate willingness- to- pay curve for a public good?A. Smith, who is currently unemployed, is a participant in four welfare pro-grams that offer daily benefits of $10 each to people with no earned income. Each program then curtails its benefits by 50 cents for every dollar of ...
Post your question