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Draw the budget constraints, indifference curves, and the income consumption curve for a good (bagels) that has an income elasticity that is perfectly inelastic on horizontal axis, and another normal good on (salads) on the vertical axis.
If homeowners purchased a $250,000 home with a zero-down, interest-only mortgage, and the value of the home subsequently fell to $200,000, in order to sell the house and move to another city, the homeowners would be required at closing to pay (in add..
Suppose a politician promises a program that will give Amanda and Britney 70 units of utility for each.
Eggebeen et al. (2010) found that men who at some point in their lives as fathers are more likely to have altruistic social relationships and be involved in community service organizations. The result was reported in the popular press (Jacobs 2009) a..
q. a pharmaceutical firm faces the following monthly demands in the u.s. and mexican markets for one of its patented
Assuming that all of each firm's $16 fixed cost is sunk, what is a firm's short-run supply curve?. What is the short-run market supply curve? c. Determine the short-run equilibrium price and quantity in this industry.
Suppose each monopolist is allowed to sell both domestically and export the good. At what price will the good be traded? What quantity will each firm sell domestically and what quantity will it export?
American Girl doll has an inverse demand curve of P = 150 – 0.25Q, where Q measures the quantity of dolls per day and P is the price per doll. The marginal cost is given by MC = 10 + 0.50Q. What is the total surplus at the profit-maximizing output le..
An adiitional feature is that the computer shop will give her 500 for her old computer on a trade in. What is the equivilent annual cost for keeping her computer? What is the equivilent annual cost for swithcing to the new system?
Suppose the velocity of money is constant at 5 transactions per year, the price level for this year is $1, and real GDP this year is $8,000,000. Suppose the economy's output of goods and services rises by 5% each year. What will nominal GDP be equal ..
Using graphs, show how you would establish the following proposition: " In a small open economy operating a fixed exchange rate, in which domestic and foreign bonds are imperfect substitutes, in the absence of sterilization the effect/ of an increase..
Explain how a price increase could be better for society than not raising the price of a product or service. Why does central planning not work efficiently?
American rice producers have extremely high production costs, due to some structural problems. Therefore, if not supported by the government, they will not be able to compete with foreign producers. Analyze two supportive policies intended to maintai..
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