Malachi only consumes 2 goods: dvd rentals and coffee. his utility function is = ..25, where r is the number of rentals and c is cups of coffee. malachi has $16 in his pocket right now, and he plans to spend all of the $16 on dvd rentals and coffee today. a. the price of one rental is $4 and the price of coffee is $2 per cup. solve for malachi’s optimal bundle. b. suppose that malachi signs up for a membership that reduces the price of a rental to $2, while leaving his income unchanged. find the substitution effect, the income effect, and the total effect of the decrease in the price of video rentals on malachi’s consumption of rentals and coffee. c. from your answer to part (b), are dvd rentals and coffee normal or inferior goods for malachi? explain.

You and your new australian bride matilda, are applying for a loan and are required to submit a balance sheet with your net worth. you own a 2008 toyota camry that you bought last month for $9,995. the kelly blue book value for this car is $13,995. you owe $8,150 on the car loan for the camry. you pay off your visa credit card every month and have not paid any credit card interest this year. the current visa credit card balance is $3,522, and the next statement is due in 15 days. you have a student loan balance of $6,500. you presently have $425 in your checking account and $1,540 in your savings account. you own 100 shares of ibm stock that you purchased for $85.50 per share. one share of ibm is now selling for $158.42. you own computers and other electronics that you purchased for $4,100 but could probably sell today on e-bay for $1,800. your gross income is $80,000 per year. what is your current net worth? (see wb ch. 2 example 2.3)

Acorporation a. can use different depreciation methods for tax and financial reporting purposes b. must use the straight - line depreciation method for tax purposes and double declining depreciation method financial reporting purposes c. must use different depreciation method for tax purposes, but strictly mandated depreciation methods for financial reporting purposes d. can use straight- line depreciation method for tax purposes and macrs depreciation method financial reporting purposes

One of the benefits of a well designed ergonomic work environment is low operating costs is true or false