Re: Daily question

Posted by Khushboo on Mar 07, 2009; 5:04pm
URL: http://discussion-forum.276.s1.nabble.com/Daily-question-tp2328964p2441238.html

Try to solve these questions
1- A consumer consumes electricity (Xe) and other goods (Xo). The price of other goods is unity, To consume electricity the consumer has to pay a rental charge R and a per unit price p. However, p increases with the quantity of electricity consumed according to the function p = 1/2 Xe. The utility function of the consumer is U = Xe + Xo and his income is I>R.
a) Draw the budget line of the consumer.
b) If R = 0 and I = 1, find the optimum consumption bundle.
c) Find the maximum R that the electricity company can extract from the consumer.



2- Experience shows that 20% of the ppl reserving tables at a certain restaurant never show up. If the restaurant has 50 tables and takes 52 reservations, then the probability that it will be able to accommodate everyone is what?