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Problem 1. In this problem, assume that u (x1; x2) = (x1^a)(x2^1-a) . (1) Find the consumerís Hicksian demand for each of the goods; in other words, Find the functions h*1 (p1; p2; v) and h*2 (p1; p2; v) that solve min p1x1 + p2x2 subject to (x1^a)(x2^1-a) >v
q1. if the economy currently has a frictional unemployment rate of 2 percent structural unemployment of 2 seasonal
To raise the incomes of the worlds severely poor population to the official threshold of US poverty.
Tracy has utility given by U(F,H) = FH^2. Last week Tracy had an income of 6 and the price of food was 1, the price of housing was 1. This week Tracy has income of 12, the price of food is 1/2 and the price of housing is 4. Find Tracy's optimal it co..
The economy begins in long-run equilibrium. Then one day, the president appoints a new chairman of the Federal Reserve. This new chairman is well known for her view that inflation is not a major problem for an economy.
Explain how difficulty will it be for the owner to plan for this new competitive threat.
Non-enforcement of occupant loads have been at root of several large loss fires in past including Cocoanut Grove fire. Why is enforcement of this aspect of egress design so important. Examples from your own experience.
Regional economic integration and multinational agreements in place help companies in pursuing and developing a transnational strategy. Do you agree with this statement? Why? Why not?
Assume that Ms. Thompson is currently exhausting her money income by purchasing 10 unites of A and 8 unites of B at price $2 and $4 respectively. Elucidate what these data suggest about Ms. Thompson.
Barriers to entry are forces that inhibit firms from entering new markets. These forces may result from practical and legal constraints. How do you think barriers to entry and product homogeneity affect the competitive nature of industries? For examp..
he or she rents 63 movies per year at the same price per movie. What is the implied income elasticity of demand for movies? Are movies a normal good or an inferior good?
Illustrate what price should the firm charge to realize the targeted profit. Illustrate what would be its (cost-based) markup ratio.
A bond with 20 years remaining has a face value of $1000 and a coupon rate of 15%. Assume that the bond payments are annual and the coupon was just paid.(a) What is the yearly coupon payment?(b) What is the price of the bond if it has a 6% yield to m..
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