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Suppose the price of housing increases to 3, but the price of food stays at 10.Rewrite Jane's budget constraint and draw it on a graph.Now suppose the price of housing decreases to 1.Rewrite her budget constraint again.When the price of housing increases does her budget constraint become steeper or flatter?When the price of housing decreases does her budget constraint become steeper or flatter?What happens when the price of food increases or decreases, but the price of housing stays at 2?
Consider the following two good pure exchange economy: Alfred's utility function is U A (x, y) = min{x, y} and Bob's utility function is U B (x, y) = max{x, y}.
Is the economy of a big city more competitive than that in a small town or given neighborhood? How? Do you think your local grocer has monopoly power?
An open economy has the following pattern of income and domestic expenditure: For each of the three years, evaluate the balance of trade facing the economy.
Provider B does not have a fixed service fee but instead chaarges $1 per minute for calls. Your friend's monthly demand for minutes of calling is given by the equation Qd= 150-50P is the price of the minute?
The subsequent table gives total output or total product as a function of labor units used. Does the table indicate a situation of diminishing returns.
Assume a indiidual has $8 to spend only on apples and bananas.
Suppose that the money market is initially in equilibrium for an economy. Explain with the aid of a diagram how the market adjusts to.
After the past five years respectively. Elucidate what is the average dividend growth rate.
Compute the price of the stock. A stock has a P/Sales ratio of 3. Sales per share is $16. Find the price of the stock.
Which of these methods of encouraging growth would you suggest to a newly industrialized economy,
Is it not ethical to use employee as a puppet to make money with out their consent? What are your thoughts on Adam Smith's principle of the Invisible Hand?
Compute the optimal bundles of consumption. The total use of each good is independent of the rate of consumption of the other good.
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