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Graphing the BC. Suppose that an individual has a weekly income of $180 to spend on goods X and Y, which have prices of $2 and $6, respectively. In the space below, using a straight edge and proper scaling, graph the budget constraint. Suppose that the price of X increases to 6. On the same graph, draw the new budget constraint. Compute the slopes of the old and new budget constraints and label them on the graph.
In what industry will a given percentage increase in production workers result in the largest percentage increase in output.
Indian GDP in 2010 was 78.9 trillion rupees, while U.S. GDP was $14.5 trillion. The exchange rate in 2010 was 45.7 rupees per dollar. India turns out to have lower prices than the United States (this is true more generally for poor countries): What i..
If R and F both have 12 hours of labor that they can give to catching fish or goats, and R requires 1 hour to catch a fish and 2 hours to catch a goat, F requires 6 hours to catch a fish and 3 hours to catch a goat. They are able to trade at Pf=Pg..
American Girl doll has an inverse demand curve of P = 150 – 0.25Q, where Q measures the quantity of dolls per day and P is the price per doll. The marginal cost is given by MC = 10 + 0.50Q. What is the total surplus at the profit-maximizing output le..
Elucidate how each of the following people would talk about scarcity and trade offs.
The law of demand states that, other things equal, an increase in
What is happening to the US real exchange rate in each of the following situations? Explain.
Which of the following Fed actions will increase bank lending?
Miller and Coors who together produce 85% of all beer consumed in the US, each spend well over $250 million a year on television advertising campaigns, promoting their beer brands.
Explain how does monetary policy work to close an inflationary and recessionary gap using the keynesians model and what is the link.
What would happen to the demand curve in each of the following cases:
how would you describe balance between costs of automation, or fixed costs and costs of labour, or variable costs. How has Internet changed balance between automation and labou.
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