A Giffen good is a good whose demand increases when its price increases (at some price) While it is clearly impossible for this to happen at all prices, it is theoretically possible if the good is suf- ficiently inferior. (Potatoes in the midst of the Irish potato famine is the most oft-cited example, but even this is debated.) (a) Illustrate diagrammatically a Giffen good, showing how the income effect dominates the substitution effect. Consider now Sheila who consumes leisure (h) and a consumption good (c), maximizing U(c, h) subject to the budget constraint c=w(T-h)+1, where T is the total time Sheila has available to either work or enjoy leisure (and I have normal- ized the price of consumption to 1).
(b) Observe that the budget constraint can be written as C+ wh=wT+1. Illustrate graphically the impace on the buget constraint of an increase in the price of leisure
(c) Under what conditions will leisure be a Giffen good (i. e., an increase in its price w leads to increase in in the consumption of leisure h)? For this part, it is enough to argue using diagrams.
(d) Suppose Sheila's utility function is Cobb Douglas, Utc, h]= ch. What Sheila's utility maximizing choice of leisure? Is it ever increasing in w?

Jamie lee is reviewing her finances one month later. she has provided the actual amounts paid below. use the cash budget table below to her identify the variances in her budget. each answer must have a value for the assignment to be complete. enter "0" for any unused categories. actual amounts income: monthly expenses: gross monthly salary $2,315 rent obligation $260 net monthly salary $1,740 utilities/electricity $130 savings allocation: utilities/water $10 regular savings $130 utilities/cable tv $155 rainy-day savings $20 food $160 entertainment: gas/maintenance $205 cake decorating class $90 credit card payment $25 movies with friends $50 car insurance $75 clothing $145 budgeted amounts assets: monthly expenses: checking account $1,850 rent obligation $225 emergency fund savings account $4,300 utilities/electricity $75 car $5,200 utilities/water $35 computer & ipad $1,100 utilities/cable tv $120 liabilities: food $115 student loan $6,600 gas/maintenance $95 credit card balance $1,000 credit card payment $45 income: car insurance $45 gross monthly salary $2,155 clothing $45 net monthly salary $1,580 entertainment: savings allocation: cake decorating class $90 regular savings $130 movies with friends $50 rainy day savings $20

Selected data for stick’s design are given as of december 31, year 1 and year 2 (rounded to the nearest hundredth). year 2 year 1 net credit sales $25,000 $30,000 cost of goods sold 16,000 18,000 net income 2,000 2,800 cash 5,000 900 accounts receivable 3,000 2,000 inventory 2,000 3,600 current liabilities 6,000 5,000 compute the following: 1. current ratio for year 2 2. acid-test ratio for year 2 3. accounts receivable turnover for year 2 4. average collection period for year 2 5. inventory turnover for year 2

Randall's, inc. has 20,000 shares of stock outstanding with a par value of $1.00 per share. the market value is $12 per share. the balance sheet shows $42,000 in the capital in excess of par account, $20,000 in the common stock account, and $50,500 in the retained earnings account. the firm just announced a 5 percent (small) stock dividend. what will the balance in the retained earnings account be after the dividend?