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Suppose the initial price of apples is $1 per lb. and the price of orange is $2 per lb. A typical consumer has income $10 and spends all his income on the two goods. The consumer buys 4 lbs of apples at the initial price levels. Later the price of apples increases to $2 per lb and the price of orange remains unchanged, and the consumer buys 3 lbs apples. Based on indifference/budget constraint knowledge, derive the demand curve for apples. Make sure you label all the prices and quantities carefully. (Hint: calculate the quantities demanded for oranges in the 2 circumstances first.)
In multiple regression analysis, explain why the typical hypothesis that analysts want to test is whether a particular regression coefficient ( B) is equal to zero ( H0: B 0) versus whether that coefficient is not equal to zero ( H1: B 0).
Which of the following types of technological change in healthcare are likely to be cost increasing:
Which of the following is explained by the price elasticity of demand?
What are the four stages of team performance? How does effective management of each stage ensure team success? How can managers and team leaders ensure success in situations when physicians are involved? Name the two situations in which most organiz..
Consider the following distribution of income in a 12 person economy, with the modern urban wage=3, the traditional rural income=1 and the informal urban wage = 2: (1,2,3,1,2,3,1,2,31,2,1). the poverty line is at 1.3. What is the level of absolute po..
Under which circumstances do you think an employee should be monitored? Based on the circumstances you have identified, how often should the employee be monitored?
Suppose a new tax is placed on the firms selling sugary drinks. What is the likely impact on prices of sugary drin
Explain the role of the following factors in the upswing in the financial cycle that preceded the global financial crisis:
Life has become yet more complicated. Government spending works with a distributed lag. Now when $1 billion is spent today, GDP increases by $1 billion this period and $1.5 billion next period.
A manufacturing firm has received a contract to assemble 1000 units of test equipment in the next year. The firm must decide how to organize its assembly operation. Skilled workers, at $33 per hour each, can individually assemble the test equipment i..
Suppose Wendy's Coffee Factory produces and sells in a perfectly competitive market. At Wendy's current level of production, she is producing the profit-maximizing level of coffee. At this quantity the average total cost of a pound of coffee is $5 an..
Two individuals, Andy and Beth, work on a joint project. If Andy chooses effort level x ≥ 0 and Beth chooses effort level y ≥ 0, then the total output equals 10x+10y+2xy. Maximize each player’s payoff function to find his or her best response functi..
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