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Give two example of intermediate goods?
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- Akua is a School of Agriculture graduate and consumes 2 goods: Yoghurt and Bread. Akua also earns a typical student income from the parents, GHS 400 a month. She can either spend it all on Yoghurts and get 50, or she can spend it all on Bread and get 200 loaves. (a) Assuming that Yoghurt and Bread are compliments for Akua, construct the equation for Akua’s Budget Line for her to consume all her income of GHS 400. (b) What if Yoghurt is so SOUR that Akua needs 2 loaves of bread for every Yoghurt that she consumes?In PPP what do you think will happen if there is a discrepancy in the prices of identical commodities?Define veblen goods and give some example.
- Explain the relation of each and every box with the next box in separate elaborative points.Imagine that a hypothetical economy produces three items food, clothes and Aluminum and a typical consumer buys food and clothing only. The table below shows the hypothetical results.Moving up along an indifferent curve:
- Which consumption theory best explain the consumption behaviour of consumers in our economyKarina is able to select her weekly work hours. When a new busway route opens up and starts to operate immediately, it cuts one hour off Karina’s total daily commute to work. If both leisure and income are normal goods, what is the effect of the shorter commute on Karina’s work time? Hint: Draw the budget constraint before and after new busway route opens up and explain what happen. You may set up Karina’s initial condition hypothetically. Following, describe about substitution and income effect.ЕОC 5.03 Assume that pizza and poutine are substitute goods in consumption. If the costs of producing poutine rise then the price of poutine would and the price of pizza would Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a fall; rise b fall; fall rise; fall rise; rise