Consider a person who consumes water and bread, deriving utility by xy if x is the amount of water consumed and y is the amount of bread consumed. Suppose this person’s income is Rs. 10, the unit price of bread is Rs. 3 and the unit price of water facing this person is Re. 1. The price of water incorporates a per unit subsidy of Re. 1, i.e., for every unit of water consumed by this person, she pays Re. 1 to the water supplier and the government pays Re. 1 to the water supplier. Suppose this person’s demand is (x0, y0). ,If the government provides this person a lump-sum income subsidy that exactly offsets her utility loss on account of removal of the water subsidy, then the required lump-sum subsidy is

/in /by

Consider a person who consumes water and bread, deriving utility by xy if x is the amount of
water consumed and y is the amount of bread consumed. Suppose this person’s income is Rs.
10, the unit price of bread is Rs. 3 and the unit price of water facing this person
is Re. 1. The price of water incorporates a per unit subsidy of Re. 1, i.e., for every unit
of water consumed by this person, she pays Re. 1 to the water supplier and the government
pays Re. 1 to the water supplier. Suppose this person’s demand is (x0, y0). ,If the
government provides this person a lump-sum income subsidy that exactly
offsets her utility loss on account of removal of the water subsidy, then the
required lump-sum subsidy is

You might also like
Which list contains only things that would make people want to hold more money? a. Interest rates decrease, the price level increases. b. Interest rates decrease, the price level decreases. c. Interest rates increase, the price level increases. d. Interest rates increase, the price level decreases.
Who was the most famous scholastic?
A proforma cost sheet of a company provides the following particulars Elements of cost Material - 40% Direct labour - 20% Overheads - 20% The following further particulars are available a) It is proposed to maintain a level of activity of 2, 00,000 units b) Selling price is Rs 12 per unit c) Raw materials are expected to remain in stores for an average period of one month d) Material will be in process, on average half a months and is assumed to be consisting of 100% raw material, wages and overheads e) Finished goods are required to be in stock for an average period of one month f) Credit allowed to debtors is two months g) Credit allowed by suppliers is one month You may follow that sales and production follow a consistent pattern, You are required to prepare a statement of working capital requirements a forecast profit and loss account and balance sheet of company assuming that Share capital -Rs 15, 00,000 8% debentures -Rs 2, 00,000 Fixed Assets -Rs 13, 00, 000
Suppose you are taking a multiple-choice test with c choices for each question. In answering a question on this test, the probability that you know the answer is p. If you don’t know the answer, you choose one at random. What is the probability that you knew the answer to a question, given that you answered it correctly?
Consider an economy with two individuals A and B, with utility functions UA = min[x^A, 2y^A] for A and UB= min[2x^B, y^B] for B and initial endowments given by WA= (1,0) and WB=(0,1). Check if goods are gross substitute and using this information comment whether the Walrasian equilibrium will be unique in this context.
An estate agent suspects that there is a linear relationship between the number of houses sold and the monthly loan payments. She analyses the following data over the past six months. Number of houses Monthly loan sold payments (in R1 000’s) x y 160 3,7 250 5,6 800 7,5 450 11,3 120 18,9 50 28,4 The regression line equation is [1] y = 480,89x − 13,99. [2] y = −0,016x + 17,45. [3] y = 17,45x − 0,016. [4] y = −13,99x + 480,89. [5] none of the above.
Unable to bear up the opposition of his enemies, prophet Muhammad fled from Mecca to Medina. What is this event known as?
The periodic and the perpetual inventory systems are two methods that companies use to account for inventories. Briefly describe the major features of each system and explain why a physical inventory is necessary under both systems.