Assume that the price of smartphones increased from $600 to $666 per unit. The manufacturer decides to supply 14,000 units instead of 10,000. Calculate the price elasticity of supply. Is supply elastic or inelastic?To answer this question we need to use the midpoint formula. Assume we have the two ordered pairs (Q1,P1) and (Q2,P2).
Do you consider your local fire department a private good or a public good? What is the difference between a public good and a private good? What are the principal characteristics of each? Why is there a free rider problem when it comes to public goods? Please explain your answer.
Use the following to answer the questions below:
- z is the marginal utility per dollar measured in utile, x is the amount spent on product A, and y is the amount spent on product B.
- Assume MUA = z = 40 - x and MUB = z = 84 - 4y.
- Assume that the consumer has $40 to spend on A and B; that is, x + y = 40.
What is the marginal utility per dollar? What is best way to allocate the expenditure of the $40?