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Every demand curve must eventually hit the quantity axis because with limited incomes, there is always a price so high that there is no demand for the good. Do you agree or disagree? Why?
Zhichao currently has a job in a small city (S) with cheap housing but he has been offered a higher paying job in a big city (B) with expensive housing. His utility function over housing (good x) and all other goods (good y) is U(x,y)=.5*ln(x)+.5*ln(..
The CPI for 1960 was 29.6 and the CPI for 2015 was 237. What was the average annual rate of inflation for consumer goods between 1960 and 2015? A loaf of bread sold for about 20 cents in 1960. What did a loaf of bread cost then in terms of 2015 dolla..
The operator of the tunnel that links Britain and France, Eurotunnel, said that commercial and tourist traffic using its car and coach shuttle service had fallen sharply, leading to a drop in operating revenues of 4%. Eurotunnel's chief executive, bl..
Suppose that annualized interest rates on 3 month CD’s in the U. S. are .375 % while in the Australia annualized interest rates on 3 month deposits are 1.10%. What must currency traders expect to happen to the exchange rate of the US $ in terms of th..
Finding the required interest rate Your parents will retire in 15 years. They currently have $270,000, and they think they will need $850,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any ad..
A health insurance company knows that there are two types of customers (smokers and non-smokers), each facing different health risks. Explain the problem of “adverse selection” and the problem of “moral hazard.” Give one example of a market in which ..
Buckeye Industries has a bond issue with a face value of $1,000 that is coming due in one year. The value of Buckeye’s assets is currently $1,290. What is the value of Buckeye's equity? What is the value of the debt?
Home has absolute advantage both chocolate and wine, comparative in chocolate. Home has absolute and comparative advantage in wine.
Compare the consumption levels of workers in both countries. Explains the diversity between the countries.
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability: Taxes owed= (1/3 of income)-$15,000. A family earning $60,000 before taxes would have how much after-tax income?
Market demand for oranges is Q = 1000 − 2P , where Q = n ∗ Qf + Qd and Q is the total quantity, Qf is the quantity supplied by a single competitive fringe firm and Qd is the quantity supply by the dominant firms. Calculate the dominant firm’s residua..
q1. the demand for tulips in delft holland is estimated by the following linear regression asqd125-15p5ywhere y is
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