Consider the model of an in- kind transfer in Figure 12.3. Suppose that it is illegal for
Question:
Consider the model of an in- kind transfer in Figure 12.3. Suppose that it is illegal for a recipient of the cheese to sell it. Nevertheless, there is a black market, where cheese can be sold for $ 1 per pound. Show how the existence of the black market affects the individual’s bud-get constraint. Does it make her better off?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 58% (12 reviews)
Initially the price of food was 2 and the price of other goods was 1 The black market for food stamp...View the full answer
Answered By
Susan Juma
I'm available and reachable 24/7. I have high experience in helping students with their assignments, proposals, and dissertations. Most importantly, I'm a professional accountant and I can handle all kinds of accounting and finance problems.
4.40+
15+ Reviews
45+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
Suppose that it is January, and your bank makes a $1 million loan with a one-year maturity and carries 4% fixed interest rate. The bank initially finances the loan by issuing a $1 million 3-month...
-
Consider the model of an undamped nonlinear spring/mass system given by x'' + 8x - 6x 3 + x 5 = 0. Use a numerical solver to discuss the nature of the oscillations of the system corresponding to the...
-
Consider the state transition diagram of Figure. Suppose that it is time for the OS to dispatch a process and that there are processes in both the Ready state and the Ready/Suspend state, and that at...
-
Consider the following red-black tree. We perform the following sequence of insertions on this tree: 26, 37, 41, 23. Draw the tree after each operation of this sequence (Note that the operations are...
-
Hoping to learn how to control crop damage by a certain species of beetle, a researcher plans to test two different pesticides in small plots of corn. A few days after application of the chemicals,...
-
A flue gas contains 60% N2 and is mixed with air to cool it. If the resulting mixture flows at a rate of 250,000 ft3/hr and contains 70%N2, what is the flow rate of the flue gas? state all your...
-
Figure P5.58 shows coal being dropped from a hopper onto a conveyor belt at a constant rate of \(25 \mathrm{ft}^{3} / \mathrm{s}\). The coal has a specific gravity ranging from 1.12 to 1.50. The belt...
-
Stagnant Iron and Steel currently pays a $12.25 annual cash dividend (D0). They plan to maintain the dividend at this level for the foreseeable future as no future growth is anticipated. If the...
-
Assume South Park is initially closed to trade. Domestic supply and demand for winter hats is given by the following equations: D = 60 - 4P, S = 2P - 6. a. Suppose South Park opens up to trade and...
-
? ?? Journalize the closing entries. Include Posting References, using the account numbers in your spreadsheet. Refer to your answers from Chapter 4, Part 1 to complete this part. If an amount box...
-
An economy consists of two individuals, Lynne and Jonathan, whose utility levels are given by U L and U J , respectively. a. Suppose that the social welfare function is W =UL+ UJ True or false:...
-
Sherrys utility is US and her income is YS. Marshas utility is UM and her income is YM. Suppose it is the case that: Define the Pareto efficient redistribution, and explain why the concept is...
-
What is meant by a unique selling proposition (USP)? Find an example of an ad your feel uses a unique selling proposition as its major selling idea. Evaluate this ad against the three characteristics...
-
Royal Hardware sold 8 pounds of bolts yesterday at a price of $3.00 per pound. This point is represented by the black plus symbol on the diagram below, which plots the price of bolts (measured in...
-
Last year, net profits of a company were nine - elevenths of revenue. If the company declared a dividend of $ 1 2 , 0 1 7 and five - nineteenths of the net profit was retained in the company, what...
-
A bank reconciliation from Ware, Inc. is provided here. Cash balance per bank statement Add: Deposits in transit $18,300 2,110 20,410 Less: Outstanding checks 1,095 Adjusted cash balance per bank...
-
A stock has had returns of 27 percent, 14 percent, -14 percent over the last three years, respectively. What is the geometric mean return for this stock? (Enter your answers as a percentage rounded...
-
Prepare budgetary entries, using general ledger control accounts only, for each of the following unrelated situations: (If no entry is required for a transaction/event, select "No Journal Entry...
-
Find the derivative of the vector function. r(t) = t sin t, t 2 , t cos 2t
-
The Dow Jones Industrial Average reached a high of $ 7801.63 on December 29, 1997. Recall from Example 18.4 that it reached a high of $ 1003 on November 14, 1972. The Consumer Price Index for...
-
For what type of project is a line-of-balance schedule particularly suited? Identify specific examples.
-
The U.S. Bureau of the Census reports trends over time in health insurance coverage, by race and sex, at www.census.gov/hhes/www/hlthins/historic/index.html and...
-
Suppose the U.S. government gets rid of the tax exemption for employer-provided health insurance. Instead, the government provides a 20% subsidy on employer provided health insurance, so that the...
-
Suppose the U.S. government gets rid of the tax exemption for employer-provided health insurance. Instead, the government provides a 20% subsidy on employer provided health insurance, so that the...
-
Have a brief introduction, discussion of the topics/points, and a conclusion.what you have learned during the course( Organizational Dynamics and Effectiveness).Their relevance to your career....
-
Using the article provided below, you are required to analyse the company information to define the business goals and evaluate whether the supply chain is a strategic fit with the business and...
-
Create output that shows a scatterplot with a line of best fit for your data. Explain what a line of best fit is? Submit both the output file (SPSS) as well as your Word summary.
Study smarter with the SolutionInn App