Crunk Times, My friend.....Crunk Times

[2kchevy06civic 5,000+ posts]

Tuna gets old real fast. //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

I've got chicken, pork, lean ground beef, salad, carrots, wheat bread, cheerio o's, skim milk and some other healthy stuff ;x.

 

[Tiger Bass 5,000+ posts]

3. (15) Suppose that there are two goods, housing and food. An individual has income I and faces prices for

housing and food of Ph and Pf , respectively. His or her demands for housing and food are given by:

q food = (1-a)C + (aI/Pf) + aB(Ph/Pf)

q housing = -aB + ((1-a)I/Ph) - (1-a)C(Pf/Ph)

where 0 0, B > 0, and suppose that each good is being consumed.

a. (5) Suppose that B > 0, and C > 0, but not too big. As income rises, what is the value of the

income elasticities of these two goods moving towards? Can you say which income elasticity is bigger than

1 for small values of I? (Hint, compare these demands with those when B = C = 0.)

b. (5) Suppose that B > 0, and C > 0, but not too big. As income rises, what is the value of the own

price elasticity for each of these goods moving towards? (Hint, compare these demands with those when B =

C = 0.)

c. (5) Since one of the goods has an income elasticity less than 1 and the other good has an income

elasticity greater than 1 one good is inferior and the other is a luxury. Consider two economies, each with the

same number of households and the same total income. In one economy all households have the same income.

In the other economy the rich have much more income than the poor. In fact assume that the poor have so little

income that their consumption of housing is practically 0. Which economy consumes more housing?

If you can understand that notation, then bravo to you, but I'll clean it up a bit after I get back from class.

 

[Tiger Bass 5,000+ posts]

I could answer part c once I was able to come up with parts a and b. I'm not sure what the difference between part a and b are though. Is part b asking for cross elasticity of demand?

Also, I am still clueless as what exactly to substitute for what. How would I go about determining change in income, change in price, change in Qd, income, and price? I assume I would use the given functions for just Qd.

 

[Tiger Bass 5,000+ posts]

I really lost a lot of respect for my professor after seeing the format of his exams. He's a real cool, funny guy, but the level of difficulty of his exams versus what he teaches in classes is astonishingly repulsive.

 

[Tiger Bass 5,000+ posts]

Am I substituting values in for the original Qd's or the Qd's when B=C=0? Or is there relevant info to be found by doing it for both?

 

[2kchevy06civic 5,000+ posts]

I really lost a lot of respect for my professor after seeing the format of his exams. He's a real cool, funny guy, but the level of difficulty of his exams versus what he teaches in classes is astonishingly repulsive.

that's how I feel about my psychology teacher. She's real funny, is way over-qualified for the position but her tests are just extremely difficult. All we do is take notes, listen to lectures and boom we have a 100 question test. Good game teacher, good game.

 

[Tiger Bass 5,000+ posts]

that's how I feel about my psychology teacher. She's real funny, is way over-qualified for the position but her tests are just extremely difficult. All we do is take notes, listen to lectures and boom we have a 100 question test. Good game teacher, good game.

Exactly, it's not like my teacher doesn't have the resources to help us understand better. He is either very lazy, or very cocky.

 

[IamDeMan 5,000+ posts]

Been a while since I been here so HI everyone!

 

[2kchevy06civic 5,000+ posts]

Exactly, it's not like my teacher doesn't have the resources to help us understand better. He is either very lazy, or very cocky.

for mine I'm going with very cocky. She seems to have the attitude of, "my god why can't you guys understand this just from what I am saying? A monkey could understand after hearing me speak."

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[2kchevy06civic 5,000+ posts]

Been a while since I been here so HI everyone!

afternoon. //content.invisioncic.com/y282845/emoticons/biggrin.gif.d71a5d36fcbab170f2364c9f2e3946cb.gif

 

[Tiger Bass 5,000+ posts]

Well, I'm off to work Flip. I'll try to figure all this stuff out when I get back around 10.

 

[bdawson72 5,000+ posts]

Hello

 

[bdawson72 5,000+ posts]

Did I miss anything important?

 

[bdawson72 5,000+ posts]

Laterz

 

[Chevillac 5,000+ posts]

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