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Question: 1) Assume you have two goods: food and beverage with a monthly income of $100. The price of food (Y axis) is $20 and the price of beverage (X axis) is $10. Graph the model (i.e. set the intercept terms) and correctly label the graph. Now on the same graph illustrate a change in the price of beverage to $5 per unit.
2) Graphically illustrate a per unit tax imposed on the seller of a product. Identify the welfare loss and the portion of the tax paid by the buyer and the seller.
3) Beginning in a state of equilibrium in our consumer equilibrium model (food is situated on the Y-axis and beverage on the X-axis). Graphically illustrate the income and substitution effect from a fall in the price of beverage (ceteris paribus) when beverage is a normal good. Label clearly.
People often complain that conversations at cocktail parties (where there is no music) are so loud that they have trouble understanding the conversation.
choose a major publicly traded automotive producer such as general motors ford toyota or volkswagen. then research this
Why does the AS curve slope upward? If the AS curve were more steeply sloped, how would the economy respond differently to aggregate demand shocks (shocks to a)
You should demonstrate your critical skills of picking up the main economic ideas from these two articles. In this assignment, you should properly read Stern.
Select 6-10 indicators that are of particular relevance to your firm and explain why. Next, outline a strategy for how the firm should respond to the information provided by the economic indicators with the goal of maximizing revenues in the years..
Company M and N compete for market and decide independently how much to advertise. Every one can expend either $10 million or $20 million on advertising.
What, if any, are this bank's excess reserves? How much new amount of loan will this bank be able to create because of the excess reserves? Answer part a and b if the required reserve ratio is changed to 8%.
If 0 or 1 of the sampled parts are found to be defective, the shipment is accepted, otherwise the shipment is rejected. Find the probability that the shipment.
What does the Federal Reserve say about the current state of the economy?
We take the number of days truant during each of three time periods: (1) the month before they are placed in the home, (2) the month they live in the home, and (3) the month after they leave the home. Apply Friedman's test. What do you conclude?
At a meeting with the manager, the accountant suggested raising the price of the hamburgers to $4.00 to improve the profit margin (P – AC). The manager noted that this would lead to a decline in sales, which would increase average cost even further.
Joe is a thrill seeker and receives utility from working in a risky environment. Assume there are only two types of jobs, riskless and risky.
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