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Assume that all the factors affecting demand in this model remain the same, but that the price has changed. Further assume that the price changes are 100, 200, 300, 400, 500, 600 dollars. a) Plot the demand curve for the firm.
Which slope is greater when there is a corner solution? Slope of the indifference curve or slop of the budget constraint? Explain. Suppose a teenager is interested in buying a car that has a very good look. Draw the indifference curve for safety and ..
A drawback to using the high-low methods is that this method is based on:
q.assume that company abc is replacing workers on the manufacturing floor with robots and other machines. company xyz
If investors thought that a reduction in the Fed's Federal Funds market interest rate target would cause inflation rates to increase in the future, what would happen to the shape of the treasury yield curve? Draw a diagram to illustrate your answer.
What is the economic costs of an undergraduate degree in economics? What is the major difference between economic profit and accounting profit? Briefly explain decreasing returns to variable inputs?
Elucidate in which country is an expansionary monetary policy likely to have a larger effect on aggregate output. Explain your answer using aggregate supply and aggregate demand curves.
Considering a machine which will have an estimated service life of 10 years with a salvage value of 10% of the investment cost. Its expected saving from annual operating and maintenance costs are estimated to be $60,000.To expect a 15% rate of return..
Suppose the government decides to raise the gasoline tax as a way of reducing air pollution and traffic congestion to their optimal levels. Which of the following describes why Pigovian taxes, such as gasoline tax, are unlike most other taxes?
The required reserve ratio is 10 percent, a bank has checkable deposits of $200 million and excess reserves of $100 million. Assuming the bank is meeting its reserve requirement, what amount is the bank holding in reserves?
Discuss the progression of the Markowitz portfolio model into the capital market theory. Describe what is meant by the security market line being the graphic representation of the capital asset pricing model. Contrast the differences between option w..
Use supply and demand analysis to explain price reduction of computers. What effect did price reduction have on quantity of computers demanded.
Suppose the marginal costs of pollution reduction are unknown and the government is choosing between regulating the quantity of pollution directly or taxing pollution. “If the marginal benefit from pollution reduction is elastic (flat), it is better ..
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