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My cousin Alyssa works at a gas station. Initially she was paid $10 per hour and requested to only work 25 hours per week. After 1 year on the job she got a pay raise to $12 per hour and requested to work 35 hours per week. After 2 years on the job, she got a pay raise to $20 per hour and requested to work 30 hours per week.
a. Why does Alyssa want to work more hours when she receives a raise from $10 per hour to $12 per hour?
b. Why does Alyssa want to work less hours when she receives a raise from $12 per hour to $20 per hour?
What is the impact of the trade surplus or trade deficit upon the interest rates and currency exchange rates.
Find the marginal rate of techincal substitution and discuss how MRTSlk changes as the firm uses more L, holding output consta
The risk-free rate of return is 3.5 percent. Illustrate what is the current value of one call option on this stock if the exercise price is $40.
Siva Nathaniel owns various plots of land in Fulton County, Georgia. He acquired the land at various times during the last 20 years. About every fourth year, Siva subdivides into lots one of the property he owns. He then has water, sewer, natural gas..
Suppose a perfectly competitive industry whose demand and supply are characterized by the following demand and supply functions: Qd = 180 − 2P and Qs = 10P. How many units will the representative firm produce? Taking this quantity as the average per ..
From a long-run production function (e.g., Q = 4K + 2L or Q = K0.5L0.5), which of the following may be determined? the quantity of output resulting from all combinations of inputs (e.g., capital and labor). the combination of inputs (e.g., capital a..
Next, suppose that the government establishes a price floor of $4.60 for wheat. What will be the main effects of this price floor? Demonstrate your answer graphically.
You are the owner of a fast-food restaurant. Given a new item that you recently advertised, you experience additional demand for your business that you do not want to ignore. Identify your fixed and variable costs at your fast-food restaurant, and ex..
A consumer is deciding how many cups of coffee and how many bus tickets to purchase. The price of a bus ticket is $1.50 and the price of a cup of coffee is $2. The following table describes the total utility derived from the two goods. Calculate the ..
The Solow growth model predicts that the GDP per capita of countries with similar technology and savings behaviour will converge over time. To test this theory a researcher examines the growth of G7 countries, fails to reject convergence, and conclud..
A June 10,1996, Wall Street Journal article titled “Americans Eat Up Vitamin E Supplies” discusses the shortage that existed for vitamin E at this time. According to the article, the shortage was created by two changes in the marketplace. First, the ..
Suppose the price of coffee beans increases by $0.20 per pound. What is the effect of this raw material priceincrease on the demand for roasted coffee? If one pound produces 50 cups of coffee, would the price of a cup of coffee rise by $0.01? Explain..
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