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Suppose a consumer spends her income on lobster and frozen pizza. Assume that the consumer has an income of $600, the price of lobster is $50, and the price of frozen pizza is $6. Using indifference curves and budget constraints show the income and substitution effects associated with an increase in the price of frozen pizza. Put frozen pizza, a Giffen good, on the horizontal axis and lobster, a normal good, on the vertical axis.
jane works part-time and earns 12000 per year. because she is below the poverty line she also earns 4000 in various
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q1. clarify how immigration between two countries could be an equalizer of wages as well as economical for both sending
What are the characteristics of perfect competition? Why does this type of fast-food restaurant tend to display characteristics of perfect competition? Imagine you are running a firm with the characteristics of a perfectly competitive firm. Describe ..
f the money supply is Ms1 and the goal of the monetary authorities is full-employment output Qf, they should:
A risk-neutral individual would:
Suppose the production function for coffee (C) is C = min(B,W) where B = beans in pounds and W = water in gallons and the price of water is $.10 per gallon and the price of beans is $10 per pound. The expansion path is
What would you expect to be the effect on interest rates if the Fed held the money supply constant.
Acme originally issued 15-year bonds at par. The bonds currently have 10 years remaining until they mature. The bonds have a coupon rate of 7.6% with coupons paid semi-annually. They currently trade at 1151.50 per bond. Find the yield to maturity on ..
they have the same demand curve for computer services. Use a graph to illustrate the overall value of computing services to the consumer. What does this imply about the profit maximizing price HAL can charge for the computer hardware.
Government encourage a decision to expand? How would it affect the reputation of the business?
A consumer spends more time searching for a good when her reservation price is:
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