question archive John is a rational consumer with whose indifference curves defined over various bundles of "petrol" and "everything else" have the standard smooth, convex shape
John is a rational consumer with whose indifference curves defined over various bundles of "petrol" and "everything else" have the standard smooth, convex shape
Subject:EconomicsPrice: Bought3
John is a rational consumer with whose indifference curves defined over various bundles of "petrol" and "everything else" have the standard smooth, convex shape. Currently, petrol costs $1.50/litre, and John consumes 1000 litres/year. One of two possibilities is about to occur, and you should evaluate the effect of each of these changes on John's welfare relative to the original status quo presented above: i. John is given an extra E1000/year by the government, but the price of petrol rises to $2.50/litre ii. John is forced to pay an extra f1000/year in tax to the government, but the price of petrol falls to 60.50/litre
A witness testifies that the taxicab that struck and injured Smith in a dark alley was green. There are three taxi companies in town: Green, Blue and White. On investigation. the attorney for Green Taxi Company discovers that a random sample of people can correctly distinguish Blue and Green taxis from one another 80% of the time (people can always correctly distinguish White taxis). Green operates 20% of all local taxis, while Blue and White each operate 40%. Based on the witness' testimony, what is the probability that the cab which struck Smith was actually green? (Round your answer to the nearest 10%.) A
