A client with anemia has a hemoglobin of 6.2 g/dL, hematocri…

Questions

Infоrmаtiоn fоr questions 6-11 There аre only two goods, good X, аnd good Y, whose quantities are represented on the figure below as the x-axis and y-axis, respectively. Grid spacing: both the horizontal grid spacing and the vertical grid spacing are 50 units, of good X and good Y, respectively. The figure shows some of Charles’s indifference curves in those two goods. Also shown are several straight lines that you can use as budget constraints, as needed. It’s for you to decide which line or lines to use as budget constraints, given the information in this question group, and the need of each question. Except where noted, only the exact answers are accepted, so make sure to double- and triple-check your reasoning and calculations. To get exact answers, assume: (1) The tangency points between indifference curves and the straight lines (the black dots) lie exactly at grid intersections. For example, the lowest tangency point shown lies exactly at Qx=400, Qy=50. (2) If a line seems to cross a grid point, assume that it does so exactly. For example, the highest indifference curve shown crosses the consumption point Qx=450, Qy=700, exactly. Enter 0, if the answer cannot be obtained with the information given. As in the previous question, suppose that Charles’s income is I=2000, and that the price of good X is fixed at Px=2.  The price of good Y goes down to a half, from Py=4, to Py=2. When the price of good Y goes down from $4 to $2, how much of the change in Charles’s consumption of good Y can be attributed to the income effect? If the part of the change attributable to the income effect is an increase of his consumption of good Y, enter it as a positive number, and if it is a decrease enter it as a negative number.

Infоrmаtiоn fоr questions 38-40 In the online mаrket for vintаge vinyl records, some records are mint and some have scratches. Consumers value mint records at $40, and records with scratches at $10, but they cannot tell which type they are buying before buying it, receiving it, and inspecting it. Initially, buyers estimate that the proportion of mint records on the market is 75%, so if they buy a record, they estimate the probability of getting a mint one at 75%. Sellers, of course, are able to tell which type of record they are selling. Since consumers (the buyers) cannot distinguish among the two types of record, there will be a single price in the market, P (there is no reason to offer different prices for records that are indistinguishable). At any price P, mint record owners will want to sell quantity: QM = – 40 + 5 P of records, and scratched record owners will want to sell quantity QS = – 60 + 20 P of records. In other words, these are their supply curves. Consumers, even though they cannot distinguish between the two types of records, know these supply curves. Only the exact answers are accepted, please make sure of your reasoning and your work before submitting your answer. Suppose that a potential buyer finds a seller who has a no-cost, no-questions-asked return policy. The policy states that if the buyer doesn’t like the record for any reason, the buyer can return the record for a full refund of the price paid and with any postage (or other) expenses paid for by the seller. The buyer believes in this guarantee. What is the maximum price that the buyer is willing to pay for a record, given this guarantee?