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A reduction in the price of a “normal good” will result in
a. more of it being purchased due to the substitution effect, AND more being purchased due to the income effect.
b. more of it being purchased due to the substitution effect, BUT less being purchased due to the income effect.
c. less of it being purchased due to the substitution effect, BUT more being purchased due to the income effect.
d. less of it being purchased due to the substitution effect, AND less being purchased due to the income effect.
q1. suppose the market is initially in equilibrium. the initial demand course is p 90-q. the initial supply curve is
Distribution of costs and benefits of free trade. In other words, does everyone share in the gains and the costs equally? Competing with different labor restrictions (or lack of), such as slave or child labor. Differences in environmental standards.
What are the goals/objectives of judges (what do they maximize)? Filing fees: for the marginal case, the one that may or may not be filed the filing cost should equalt what?
A large induced-draft fan is needed for an upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8760 hours per year.
Not long ago an employee came into my office asking for a wage increase. I responded by asking what increase in productivity the employee brought to the University in order to merit such an increase.
find the quatanties of capital and labor that maximize output,while at the same time satisfy the firms budget constraint. what will happen to the firms output if the budget is raised by 100?
Moli Labs Inc. is developing medical research on anti-memory loss pill. The lifetime value of the patent would be V = $840 (in millions). The company can invest in many separate identical labs. Each lab costs $21 million to operate, and each has a pr..
There are two choices for replacing a punch press. The basic model has a useful life of 8 years while the deluxe model has a useful life of 12 years. Whats the most appropriate analysis period for this problem?
Explain why industry expansion in response to rising prices will put even more upward pressure on price in the cattle price cycle. What happens to finally cause the turnaround at the peak of the cattle price cycle?
Use Appendix A at the back of the text to show the compound annual rate of growth in earnings (n=4).
Builders of a hybrid car declared it would build a car that would get 180 miles per gallon of unleaded gas. They figured it would cost $40,000 each car to build.
Elucidate what happens to the official measure of GDP in each of the following situations.
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