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A factory that employs more than 70% of the workforce in the community of Green Island has closed, because of foreign imports. john who operates a convenient store within the community noticed a sudden increase in the demand for his products since the close, explain
Add a downward sloping demand curve, and show the profit maximizing quantity and price. Indicate the profit as an area on your diagram. Show the deadweight loss.
Why do Senior citizens pay less than everyone else for admission to a movie, but pay the same as everyone else for movie-popcorn?
Suppose a consumer’s preferences over goods 1 and 2 are represented by the utility function u(x, y) = (x+ y)^3. Draw an indifference curve for this consumer and indicate its slope.
q1. lets think about two countries frugal and smart. in frugal people devote 50 percent of gdp to making new investment
Which of the following must be true in an economy with a government but with no foreign trade?
A bank has issued a six-month, $2 million negotiable CD with a 0.52 percent quoted annual interest rate. Calculate the bond equivalent yield and the EAR on the CD. How much will the negotiable CD holder receive a maturity?
why would china want its own currency to be undervalued relative to the u.s. dollar? how does china maintain an
Suppose when Russia opens to trade, it imports cars, a capital intensive good. (Consider the following Heckscher-Ohlin model.) According to the Heckscher-Ohlin model, is Russia capital-abundant or labor-abundant? Why? What is the impact of opening tr..
What does price elasticity of demand tell us about the impact of a price increase on total revenue? What are some goods with highly inelastic price elasticity of demand and how does governmental taxing policy take advantage of that?
Which of the following is one of the differences between the Articles of Confederation and the new Constitution created during the Constitutional Convention in 1787?
Bill gets utility from consuming food (F) and clothing (C) represented by the following utility function: U(F,C) = FC + F. The price of food is $1 per unit and the price of clothing is $2 per unit. Bill’s income is $22. Graph Bill’s budget constraint..
Draw the inter temporal budget constraint. Be sure to label the axes, endowment point and the absolute value of the slope. Suppose that the individual’s interest income is taxed at 25% in both periods, and that interest payments are deductible at 25%..
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