Suppose you live in a two-goods, static economy. During the transient existence of the economy, you...

 

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Suppose you live in a two-goods, static economy. During the transient existence of the economy, you will earn a total income of $10,000 (let us ignore tax for now). You also own 10% of a firm, whose profit will be $15,000. Recall that a firm will distribute all its profit among its shareholders in a static economy, as reinvestment would be unmeaningful. (1 point for each part of this problem) (a) What would be your budget (w)? (b) Suppose "fountain drink" is our Good #1, whereas "ground beef" is our Good #2. Let the price of Good #1 be $2.30 per liquid ounce, and the price of Good #2 be $5.00 per pound. Please write down your budget constraint below. Note: Please do not represent prices and budget with symbols, as you have their values. (c) Please draw a 2-dimensional diagram in x₁, x2-space, plot the boundaries of your budget set, and shade the budget set below. Problem 3. Compare the following pairs of vectors. Your answers can be one or more of the following: "<<", "None of the above" Please provide all of the true answer(s) to each question. For example, if “<<” is true, then and "<" must also be true. (1 point for each part of this problem) 66799 9 9 (a) [1.5, 3.5, 6] and [2, 3.5, 9]T (b) [1, 3, 5, 7, 9]¹ and [0, 2, 4, 6, 8.9]T (c) [2, 6, 3, 4]¹ and [1.6, 5.7, 3.1, 4]™ Problem 5. Please check whether the following relations are: reflective, complete, transitive, or anti-symmetric. (4 points for each part of this problem) (a) Consider "smaller than", namely "<". Is it: Reflective? [Yes / No] Complete? [Yes / No] Transitive? [Yes/No] Anti-symmetric? [Yes/No] (b) Consider "strictly greater than", namely ">". Is it: Reflective? [Yes/No] [Yes/No] [Yes/No] Anti-symmetric? [Yes/No] Complete? Transitive? Suppose you live in a two-goods, static economy. During the transient existence of the economy, you will earn a total income of $10,000 (let us ignore tax for now). You also own 10% of a firm, whose profit will be $15,000. Recall that a firm will distribute all its profit among its shareholders in a static economy, as reinvestment would be unmeaningful. (1 point for each part of this problem) (a) What would be your budget (w)? (b) Suppose "fountain drink" is our Good #1, whereas "ground beef" is our Good #2. Let the price of Good #1 be $2.30 per liquid ounce, and the price of Good #2 be $5.00 per pound. Please write down your budget constraint below. Note: Please do not represent prices and budget with symbols, as you have their values. (c) Please draw a 2-dimensional diagram in x₁, x2-space, plot the boundaries of your budget set, and shade the budget set below. Problem 3. Compare the following pairs of vectors. Your answers can be one or more of the following: "<<", "None of the above" Please provide all of the true answer(s) to each question. For example, if “<<” is true, then and "<" must also be true. (1 point for each part of this problem) 66799 9 9 (a) [1.5, 3.5, 6] and [2, 3.5, 9]T (b) [1, 3, 5, 7, 9]¹ and [0, 2, 4, 6, 8.9]T (c) [2, 6, 3, 4]¹ and [1.6, 5.7, 3.1, 4]™ Problem 5. Please check whether the following relations are: reflective, complete, transitive, or anti-symmetric. (4 points for each part of this problem) (a) Consider "smaller than", namely "<". Is it: Reflective? [Yes / No] Complete? [Yes / No] Transitive? [Yes/No] Anti-symmetric? [Yes/No] (b) Consider "strictly greater than", namely ">". Is it: Reflective? [Yes/No] [Yes/No] [Yes/No] Anti-symmetric? [Yes/No] Complete? Transitive?

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Based on the images youve provided it seems you have a multipart economics and mathematics problem to solve Lets go through each part step by step Par... View the full answer