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An individual has a budget constraint of $28. The price of healthcare is $2 and the price of all other goods is $4. (a) Graph their budget constraint. (b) Label the axes. In other words, indicate whether the X axis is healthcare or all other goods. (c) Draw the highest indifference curve they would choose. (Draw a curve tangent to the line.)
About 32% of all the laptop computers sold in an electronics store have hard disks made by Western Digital, i.e., equation. In a specific shipment, a total of equation laptop computers are received. Treat these 15 laptop computers as a random sample ..
The marginal social benefit of a good that exhibits positive externalities is ( Greater or Less than ) the private social benefit of that good. Why?
Social Security Do you think the federal government should increase spending on Social Security and Medicare for the elderly? If not, how should the elderly fund retirement and medical costs? Provide research support for your positions.
What would you say are the advantages and disadvantages of electronic communication? For example, hardly anyone faxes any more, we email. Do you feel texting is the next evolution for business communication? Or, is there something else? How do you ta..
Here's a story economists tell one another: A Nobel Price-winning economist flew to New York City for a conference. He got into a cab, and started talking with the cab driver. The cab driver said, "Oh, you're an economist? Let me tell you, this econo..
When the price of wheat rises from $2.34 to $2.46, some farmers switch crops, and the amount of barley offered on the market falls from 101 million bushels to 99 million. What is the cross elasticity of supply? When the wage rate rose from $6.25 per ..
What macro policy tools would you use or favor in order to improve economic growth, reduce unemployment, and avoid price inflation right now in 2015 in the US?
the total quantity of monthly account across all internet providers increases from 90,000 to 190,000. What is the value price elasticity of demand? Is the demand elastic or inelastic?
Kelson Electronics, a manufacturer of VCRs, estimates the following relation between its marginal cost of production and monthly output: MC = $150 + 0.005Q. What does this function imply about the effect of the law of diminishing returns on Kelson's ..
If the price elasticity of demand for a product is 1 in absolute value, and the price elasticity of supply of the same product is 1, what is the predicted percent change in price from a 1 percent increase in demand?
At what stage of the consumer decision process can a marketer focus on creating primary demand for a new product?
The implication of the prisoners’ dilemma for a long-run strategy is for firms to a. Both b and c b. Figure a way to lower their costs c. Do nothing d. Differentiate your product that competitors cannot imitate. To improve your own bargaining positio..
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