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A consumer must divide $600 between the consumption of product X and product Y. The relevant market prices are Px = $10 and Py = $40. a. Write the equation for the consumer's budget line. b. Illustrate the consumer's opportunity set in a carefully labeled diagram. c. Show how the consumer's opportunity set changes when the price of good X increases to $20. How does this change alter the market rate of substitution between goods X and Y?
Elucidate the equilibrium price and equilibrium quantity. Suppose the price is currently $2. What problem exists in the economy? What would you expect to happen to price.
Assuming that the perpetual inventory record is kept in dollars and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?
The great 18th century economist Adam Smith wrote, "Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice: all the rest being brought abo..
Some, like Santander, have quietly expanded into or business lines; its consumer-credit division is Europe's biggest car financier. What is next.
Interest rate if no one else will give me a loan? Will I be better or worse off as a result of taking out this loan. How can you make a case for legalizing loan-sharking.
The Economic impact of the Baby Boomers on the US economy? prepare a paper and present it in the class by a powerpoint. Please use scholarly references and statistical data to support your argument
Consider a large country importing good X in the international market. The country is large enough to influence the international price for good X. Let the initial international price of good X be $100, where the country imports 100 units and produce..
A driver faces a 5% probability that his car will be in an accident and will be worth nothing. Consider three drivers with cars that have value $30,000. Abdulla's utility function over the value of his car W is u(W) = ln(1 + W). Bedriya's utility ..
Discuss possible hold-up problems, importance of long term contracts, and possibility of underinvestment in labor that might occur under such compensation schemes.
q1. a luxury good is a good for which the income elasticity exceeds one. the demand for a luxury good is given by qd x
What does the Taylor rule imply that policymakers should do to the fed funds rate under the following scenarios?
You have been the Chief Financial Officer (CFO) for a large manufacturing company for 15 years. The Company’s yearend is March 31 and you are finishing the year end accounts. You have recently been advised by the Chief Operating Officer (COO) of a si..
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