Pita is the CEO for Just Like Gems, which makes costume jewe…
Pita is the CEO for Just Like Gems, which makes costume jewelry designed by a Spanish artist named Alejandro. As a result, this jewelry has strong appeal in areas of the United States with a large Latino population. However, the U.S. market already has two companies that make high-quality costume jewelry that is popular with people who have a mid-to-high range income. Considering all of these elements, how could Pita use a focused low-cost strategy to ensure Just Like Gems gains market share and is profitable?
Read DetailsInformation for questions 10-15 The figure below shows indif…
Information for questions 10-15 The figure below shows indifference curves for a consumer who consumes good X (on the horizontal axis) and good Y (on the vertical axis). The utilities of the indifference curves are 100, 200, 300, 400, and 500 (it’s up to you to determine which indifference curve corresponds to which utility). Note: the answers to the questions in this group won’t be exact. To have exact answers, we’d need an exact utility function and take derivatives. Since all we have are graphs, the answers will necessarily be approximate. The point is to make the best approximations that you can, using the limited graphical information. To see the figure as clearly as you can, try to have it on a computer screen and enlarge it; also, use a ruler. Enter all answers as positive numbers. Your answer must be within the approximation specified in each question. If the answer cannot be obtained from the figure, even as an approximation, enter 0. Starting at the same point, X=4 and Y=15, how much is her marginal utility with respect to Y? Your answer must be within 5 units of the best approximation possible from the figure.
Read DetailsInformation for questions 7-9 The figure below shows supply…
Information for questions 7-9 The figure below shows supply and demand for a certain good. Note the axes’ scales: on the horizontal axis, the quantity Q has grid spacing of 5 units of the good; on the vertical axis, the price P has grid spacing of $0.25. Adhere to the following convention, which is necessary to get exact answers: if a line (the supply curve or the demand curve) seems to cross an intersection of the grid, then by convention assume that it does so exactly. For example, the tip of the supply line seems to be at P=3.5, Q=70, so we’ll assume that it crosses the grid at exactly that point, that is, that when the price P=3.5, then the supply is Q=70, exactly. All answers are positive numbers. Only exact answers are accepted, so please make sure to check and doublecheck your reasoning and your calculations. If the answer cannot be obtained with the information given, enter the number 0. The government imposes a sales tax on this good of $1.25 per unit sold. Calculate the consumer surplus, when the tax is in place.
Read DetailsInformation for questions 10-15 The figure below shows indif…
Information for questions 10-15 The figure below shows indifference curves for a consumer who consumes good X (on the horizontal axis) and good Y (on the vertical axis). The utilities of the indifference curves are 100, 200, 300, 400, and 500 (it’s up to you to determine which indifference curve corresponds to which utility). Note: the answers to the questions in this group won’t be exact. To have exact answers, we’d need an exact utility function and take derivatives. Since all we have are graphs, the answers will necessarily be approximate. The point is to make the best approximations that you can, using the limited graphical information. To see the figure as clearly as you can, try to have it on a computer screen and enlarge it; also, use a ruler. Enter all answers as positive numbers. Your answer must be within the approximation specified in each question. If the answer cannot be obtained from the figure, even as an approximation, enter 0. How much of the increase in Y calculated in the previous question can be attributed to the substitution effect only? To be right, your answer must be within 2 units of the best approximation possible from the figure.
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