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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 + yP + zI (where I is income). Provide and explain any restrictions on the parameters x, y and z. (You may focus your analysis to restrictions on the parameters for the specific case when P=I=1 if helpful).
Q2. The craven behavior of the disgraced U.S. Bureau of Ocean Energy, Management, Regulation and Enforcement resulted in its replacement Discuss the capture of the regulatory agency and your prediction as to the capture of the replacement regulatory agency and the politicians in the future.
Use the two big questions of economics and the economic way of thinking to answer the following questions about the economic life of a homeless man.
Compare the consumption levels of workers in both countries. Explains the diversity between the countries.
Examine the following list of goods and services. Which goods and services should be included in Fredonia GDP in 2009, which should be excluded, and why.
Explain each of the following using supply and demand diagrams, With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.
The equilibrium quantity increase or decrease depends on Demand
Marginal rate of substitution between leisure as well as labor as well as the marginal product of labor in the Robinson Crusoe model.
Refer to the Real Estate data, which reports information of homes sold in the Goodyear, Arizona, area during the last year. Prepare a report on the selling prices of the homes.
What are the informing factors of global interdependence, including the economic factors, political dynamics and cultural differences.
George and John, stranded on an island, use clamshells for money. Last year George caught 300 fish and 5 wild boars. John grew 200 bunches of bananas.
Illustrate the expected total monetary loss under 4% of annual interest rate if this park is permanently closed this year.
If most businesses in an industry are earning a 13 percent rate of return on their assets, but your firm is earning 23 percent what is your rate of economic profit
Find the subgame perfect equilibria of the variant of the game in which the post-entry competition is a game in which each firm chooses a price, rather than an output.
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