For questions regarding the mathematical analysis of economic models and problems. This includes questions about the formulation or solution of models from microeconomics or macroeconomics.
Questions tagged [economics]
1602 questions
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Total savings from monthly deposits
If I add $\$1000$ to a bank account each month with the yearly interest of $2\%$ how much will I have in one year?
Answer says $\$12 111 $
I don't know how to get to that answer, can someone help me?
user377761
- 41
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3 answers
Price mechanism question (economics)
There are two goods in the market $X1$ and $X2$ and both of their prices are positive. If an agent's utility function is given as: Q1 = amount of X1 agent buys, Q2 = amount of X2 agent buys, $u = Q1 + |Q2-5|$ Identify the demand of this agent.
Note:…
Xentius
- 1,151
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Econ: Given demand $x_1$, $x_2$ under locally non-satiated preferences find the demand for $x_3$
I have a sort of theoretical question that has an application to a problem I am doing. I have been asked the question in the title. Given a three good economy on $\mathbb{R}^3$ and a consumer's Marshallian demand for goods $x_1$, $x_2$ I need to…
student_t
- 1,309
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Why the set of choice rule is non-empty, if a set preference relation is finite
I want to prove that if there is preference relation, induced choice rule of the set is non-empty if the set is finite.
I tried to solve this problem by induction. First, I considered a set with only one element. Therefore, the choice rule of the…
XX13X882017
- 21
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Find the real exchange rate
If the nominal exchange rate increases by 5%, while domestic inflation is 2% and foreign inflation is 3% then the real exchange rate changed by?
Lee
- 11
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2 answers
Differentiate Min Function
I have no clue how to work with min functions, and am struggling! I have a question that has the constraint of Total Income $=150=I_x+I_y$, thus getting $I_y= 150-I_x$. My function is $W = min (U_x, U_y)$.
My functions are $U_x = 50 \sqrt(I_x)$ and…
Kyle Britto
- 13
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1 answer
Given a yearly interest rate of $5\%$, compounded monthly, what's the present value of £$1000$ in three years' time?
I'm helping out an economics student, and this is an exercise on one of her problem sheets.
I don't have a background in economics, but I would expect the answer to be
$$1000\left(1-\frac{.05}{12}\right)^{36}\approx 860.44,$$
as the initial amount…
man_in_green_shirt
- 2,598
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1 answer
How do I interpret $n^*$ and $n^{**}$ in this mathematical economics statement?
The statement I'm confused about says the following:
The best surplus we can get from trading $n$ objects equals $$\sum_{k=1}^n (v_k - c_k) = V(n) - C(n)$$
Any efficient trading volume thus maximizes $TS(n) = V(n) - C(n)$. The smallest such…
TheHopefulActuary
- 4,784
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First and second order stochastic dominance
Consider the two distributions $$F_y(w) = \begin{cases}
0 \ &\text{if} \ w < 1\\
w-1 \ &\text{if} \ 1\leq w < 2\\
1 \ &\text{if} \ 2\leq w
\end{cases}$$
and
$$F_z(w) = \begin{cases}
0 \ &\text{if} \ w < 0\\
\frac{1}{3}w \ &\text{if} \ 0\leq w <…
Wolfy
- 6,495
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2 answers
Question about regular saving compound interest formula
I have an exercise for my economics course in school where we have already the solution from our teacher received but we do not have the proof on how you actually solve this exercise.
I tried a lot of formulas and sites that I found, including this…
Filip
- 23
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0 answers
How to formulate that a factor may influence a variable or the changes in that variable?
I wonder how to formulate how multiple factors (for instance an announcement of Central Bank A, B and C) may influence a variable. For example, consider the following formula:
$$\Delta I^n_t = f (A_t, B_t, C_t)$$ where $I^n_t$ refers to the interest…
peter
- 11
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2 answers
money to pay the 1st semester bill on time and still have the remainder for the second semester?
John has savings account earning 3% simple interest. He has to pay 1300 for first-semester tuition by september 1st and 1300 for second semster tuition by january 1st. How much does he need to earn by september 1st to have enough money to pay the…
combo student
- 1,271
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3 answers
Inspiration for exam
To complete college (or what the equivalent in Denmark would be) I will have to write a text about a topic that I choose.
I have chosen to write about mathematics in business economics, and specifically, I want it to be about investment analysis and…
Martin Vestergaard
- 39
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Trading price of 2 consumers with the same utility function
Say that two consumers, A and B, have the same utility function, just $u(x) = (x_1)^2 + (x_2)^2$ for simplicity. If consumer A has endowment $x_A = (4, 3)$, and consumer B has endowment $x_B = (3, 4)$, and the price of good 2 is $p_2 = 1$. I think…
firtrees
- 13
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1 answer
economics: two fully substitutable products - demand curves?!
I hope that this is the right stackexchange-site for my question, if not, please move it! sorry!!! :)
So, I have a problem with a paper I've got to read for one of my classes, and I think you guys can help me!
Assume there are two countries, and two…
Marie. P.
- 1,723