Critical Thinking (Must contain 2+ sentences for full credit…

Critical Thinking (Must contain 2+ sentences for full credit)   Consider the demand for hamburgers. If the price of a substitute good (e.g., hot dogs) increases and the price of a complement good (e.g., hamburger buns) increases, can you tell for sure what will happen to the demand for hamburgers? Why or why not?

Short Answer/Calculation     The table below shows the cons…

Short Answer/Calculation     The table below shows the consumption choices between two goods: running shoes and running shorts. Assume that you have an income of $300, running shoes cost $150, and running shorts cost $30. Fill in the total utility columns, as well as the marginal utility per dollar (MU/$) columns. Then decide which is the optimal combination of goods based on maximizing your total utility.   In your answer, if the answer is a whole number, no decimal is needed. If the answer has (non-zero) decimals, round to two digits. Example answers:   Running Shoes TU MU MU/$ Running Shorts TU MU MU/$ 1 300 1 150 2 50 2 120 3 50 3 90 4 50 4 75 5 50 5 60

Critical Thinking (Must contain 2+ sentences for full credit…

Critical Thinking (Must contain 2+ sentences for full credit)   We know that a change in the price of a product causes a movement along the demand curve. Suppose consumers believe that prices will be rising in the future. How will that affect demand for the product in the present? How would you show this graphically?

Critical Thinking (Must contain 2+ sentences for full credit…

Critical Thinking (Must contain 2+ sentences for full credit)   Explain why point R on the production possibilities frontier below is an inefficient allocation of goods (assuming that the only choices are healthcare and education, and only considering a single period of time). Explain why a society might choose to produce at point R if we assume that there are more than two choices of production and/or multiple time periods are considered?

Suppose the countries of Xania and Plutia share the world su…

Suppose the countries of Xania and Plutia share the world supply of water. Suppose that the marginal cost of bottling water is a constant at $4 per gallon, and the demand for water is described by the following demand schedule: Price Quantity $9 100 $8 200 $7 300 $6 400 $5 500 $4 600 $3 700 $2 800 If there were many suppliers of bottled water like there would be in perfect competition, what would be the price and quantity?