FREE Trial

Consider Noah's preferences for leisure (L) and other goods (Y), U(L, Y) = L + Y. The associated marginal utilities

Question:

Consider Noah's preferences for leisure (L) and other goods (Y), U(L, Y) = √L + √Y. The associated marginal utilities are MUL = 1/(2√L) and MUY = 1/(2√Y). Suppose that PY = $1. Is Noah's supply of labor backward bending?

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 100% (9 reviews)

If Noahs wage rate is w then the income he earns from work…View the full answer


answer-question
Answered By
tutor-profile-image
Gaurav Soni
Teaching was always an area where I can pursue my passion. I used to teach my friends and junior during my school and college life. After completing my professional qualification (chartered accountancy) and before joining my job, I also joined an organization for teaching and guidance to my juniors. I had also written some articles during my internship which later got published. apart from that, I have also given some presentations on certain amendments/complex issues in various forms. Linkedin profile link: https://www.linkedin.com/in/gaurav-soni-38067110a
5.00+ 7+ Reviews 13+ Question Solved
Related Book For  answer-question
Microeconomics

Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: March 17, 2016 04:51:33
See More Questions

Students also viewed these Economics questions

Q:
Terry's utility function over leisure (L) and other goods (Y) is U(L, Y ) = Y + LY. The associated marginal utilities are MUY = 1 + L and MUL = Y. He purchases other goods at a price of $1, out of...
A:
If Terrys wage rate is w then the income he earns from working is 24 L w Since P......
Q:
Raymond consumes leisure (L hours per day) and other goods (Y units per day), with preferences described by U(L, Y) = L + 2Y The associated marginal utilities are MUY = 1 and MUL = 1/L. The price of...
A:
a For this utility function it turns out that the amount of leisure can be determined......
Q:
1. Dirk spends $20 each week on muffins (price = $2) and bagels (price = $1). This week he bought four muffins and ______bagels. The marginal utility of muffins is 30 utils and the marginal utility...
A:
1 12 more fewer 2 Table Entries 4 5 a beverage B b......
Q:
A stiff, straight, horizontal wire of length 25 cm and mass 20 g is supported by electrical contacts at its ends, but is otherwise free to move vertically upward. The wire is in a uniform, horizontal...
A:
p F t BI t BQ mv 0......
Q:
Suppose that you have been given the table structure and data shown in Table 6.9, which was imported from an Excel spreadsheet. The data reflect that a professor can have multiple advisees, can serve...
A:
a The dependency diagram is shown in Figure P6 9a Figure P6 9a The Dependency Diagram for Problem 9a Note that Figure P6 9a reflects several ambiguities For example although each PROF OFFICE value sho......
Q:
An old adage of the law states, As society becomes less secure, criminal punishments become more severe. Write a paragraph relating this to the United States experience with the death penalty and...
A:
The death sentence also known as the capital sentence is permitted in twenty seven states by the Ame......
Q:
Consider an American installment option in which the buyer pays a smaller upfront premium, while a constant stream of installments at a certain rate per unit time are paid subsequently throughout the...
A:
Click to View...
Q:
Derby, Inc. manufactures golf clubs in three models. For the year, the Eagle line has a net loss of $20,000 from sales $200,000, variable expenses $180,000, and fixed expenses $40,000. If the Eagle...
A:
Continue Eliminate Net Income Increase Decrease Sales Variable expenses Contrib......
Q:
Explain how the Fed could increase the level of bank reserves in the economy while leaving the money supply unchanged.
A:
The Federal Reserve can increase the level of bank reserves in the economy while keeping the money s......
Q:
The capital allocation process involves the transfer of capital among different entities that include individuals, small businesses, banks, financial intermediaries, companies, mutual funds, and...
A:
Answer Explanation Part 1 In the capital allocation process when the allocation is done through so......
Q:
Show that the following statements are true: a) An inferior good has a negative income elasticity of demand. b) A good whose income elasticity of demand is negative will be an inferior good.
A:
a and must be greater than zero In addition assume inc......
Q:
Julie buys food and other goods. She has an income of 400 per month. The price of food is initially $1.00 per unit. It then rises to $1.20 per unit. The prices of other goods do not change. To help...
A:
The option is d Lets call Julies initial basket A this is t......
Q:
1. Was there respondeat superior liability in this case? 2. Should National have reasonably known about Livignis violent-related problems? If so, did it act negligently in retaining him as an...
A:
1 Yes Livignis actions as store manager were prompted in part by the motivation of protecting the employers property and the employers interests His b......
Q:
Miles Corp, has the following normal account balances at its 12/31/23 year-end, prior to adjusting entries being made Description Inventory balance at 1/1/23 Purchases discounts Purchase returns and...
A:
Given Beginning inventory 70 000 Purchases 2 000 000 P......
Q:
A 16-year-old adolescent male resident at the local police department's boot camp was in his normal state of health until this morning, when he developed a headache and fever of 105.8F. Over the next...
A:
The most likely diagnosis Also Patho of it The most probable analysis in light of the side effects depicted is bacterial meningitis Bacterial meningitis is an aggravation of the defensive layers cover......
Q:
Suppose you are a customer in the FX market and observe the following quotes for FX spot trades of EUR vs. the CHF, CHF vs. the HUF and CHF vs. the HUF with three dealers A, B and C: Dealer A B C...
A:
To determine if there is a triangular arbitrage opportunity we need to check if the cross exchange......
Q:
In statistical measurement of the impact of microfinance, an enterprise may be used as a unit of assessment. (i) Illustrate and explain a conceptual framework that is suitable for such an analysis....
A:
1 We can explain the measurement of the impact of microfinance on the institution based on several factors Income and productivity of the institution......
Q:
Create a works cited page for a hypothetical essay that cites the following sources. Creating a Works Cited page in MLA format for the sources Jeremiah Chamberlin lives in Ann Arbor, where he...
A:
Works Cited Chamberlin Jeremiah Workshop Is Not for You Fiction Writers Review www fictionwritersrev......
Q:
What is deposit money and how it is backed?
A:
Credit money is money backed by t......
Q:
If a test has high reliability. O the test measures what the authors of the test claim it measures O people who take the same test twice get approximately the same scores both times O scores on the...
A:
A measure is said to have a high reliability if it produces similar r......
Q:
What is a dominant- strategy equilibrium? What is a Nash equilibrium? Is it possible for a Nash equilibrium to exist where neither player has a dominant strategy?
A:
A dominant strategy exists when the firm s best choice is the same......
Q:
Tables 14.1 and 14.4 both involve two firms each choosing between low and high outputs, but only one of the tables illustrates the prisoners dilemma. Explain why the nature of the market in which...
A:
Table 14 1 does not illustrate a prisoner s dilemma bec......
Q:
Is a repeated-or single-period game more appropriate for the study of oligopolies? In which setting is collusion more likely to be a stable outcome? Explain your answer.
A:
A repeated game setting is more appropriate in most oligopolistic markets because firms do......
Dreams Of The Island - ISBN: 1800191103 - Free Book