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Matt spends $40 per month on peanut butter (good x, measured in jars) and bread (good y, measured in loaves). He wishes to consume the goods according to the following utility function: u(x,y) = min(2x,y). Last month, the price of a jar of peanut butter was $5 while each loaf of bread was priced at $2.50. This month, the price of bread rose to $4 per loaf while Matt’s preferences, income and the price of peanut butter remained the same. Identify the compensatory income that corresponds to this price change.
What is the maximum amount you would pay for an asset that generates an income of $250,000 at the end of each of 5 years if the opportunity cost (interest rate) of using funds is 8 %?
Suppose that a system of unemployment compensation isinstituted in the country, and the average duration of unemploymentrises for two months: a )What will be the unemployment rate for this economy now
explain how the answer would change if effectiveness of drip and flood irrigation depended on land quality. the answer
question 1your boss who is the general manager of the pontiac rangers an adequate aa baseball team has heard that you
Prepare a 2 page paper using APA format discussing Airline Ticket Prices.Explain the rationale behind equal prices for unequal distances in air travel using supply, demand, and cost curves.
Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car deal..
Networks are subject to negative externalities. How might such externalities affect a network carrier’s decision to add another spoke city to its network? Describe. (You might wish to use marginal benefit/cost analysis)
The U.S. imposes a quota of 45 million units per month on this good and what will be the price U.S. consumers will pay for the good now?
consider a market of mp3 players. list one or two events related with this market which will cause the following
a. suppose your local congress representative suggests that the federal government should not intervene in the
when a company goes from a private corporation to a public corporation it does an ipo. what does ipo stand for? what
Analyze the current market conditions of the Home Depot. Include the history of the Home Depot, the market in which it operates role of government regulations of firm and any issues that the Home Depot faces.
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