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1. Explain how a change in price affects total expenditure by filling in each cell with the resulting change in total expenditure.
Demand is ...
Increase in Price
Decrease in Price
Elastic
Unit-elastic
Inelastic
2. You buy only apples and bananas. Your budget is such that you can purchase 3 apples and 4 bananas or 9 apples and 2 bananas. Write down the equation for the budget line with bananas on the y-axis. Is that equation unique?
In article on the steel industry, The Wall Street Journal noted that as steel prices were falling, steelmakers were not cutting production
Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
Essay on Market imperfection associated with negative externalities.
Engineers at national research laboratory built a prototype automobile which could be driven 180 miles on single gallon of unleaded gasoline. They estimated that in the mass production the care would cost 40k for each unit to build.
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.
According to law of comparative advantage , who should produce wheat and who must produce Cd palyer? Evaluate all relevant opportunity cost.
A profit-maximizing monopolist never produces in the inelastic part of a linear demand curve. The short-run supply curve of a competitive firm is its MC curve.
Assume that Florida migrant workers are effectively unionized. What will be the impact of unionization on?
How income may change savings behavior
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
Question based on Laffer Curve : Tax Rate and Tax Revenue, Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?
Obtain the market clearing price and quantity. Under the assumption of profit and maximization , how much output should the representative firm produce?
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