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Suppose that a consumer's future income increases, and the real interest rate increases as well. In a diagram, determine how the consumer's optimal choice of current consumption and future consumption changes and how saving changes. Show how your results depend on income and substition effects and consider the cases where the consumer is initially a lender and where he or she is initially a borrower.
Assume a firm has just introduced a new line of ceramic insulators for which it has received patent protection, effectively granting the company monopoly status in the industry.
Is the economy of a big city more competitive than that in a small town or given neighborhood? How? Do you think your local grocer has monopoly power?
In this exercise, you will find actual points on the combined PPC of the two states. For each of the following values of one good, calculate the maximum amount of the other good that the two countries could produce working together.
Two principles of economics that help describe how wages are determined in a market economy, Think these principles when completing the project. Think of how they apply to labor market for nurses.
If consumer incomes rise to $30,000, illustrate what will be the new equilibrium price and the new equilibrium quantity.
Please detail the possibilities of using fiscal policy to stimulate economic activity in Denmark in a situation of economic stagnation among the most important trading partners.
Imagine a person's utility function over two goods, X and Y, where Y represents dollars. Specifically, assume a Cobb-Douglas utility function:
Please elucidate the likely effects on Savings (Gross Private Domestic) Investment, Long Term Real Interest Rates, The Capital Stock, Natural RGDP.
It may be borne in mind which demand plays a pivotal role so far the determination of equilibrium composition of output is concerned.
Discuss the necessary conditions to make price discrimination work and the best practices to use price discrimination to maximize profits while avoiding price wars. In your discussion make evident the challenges of the strategy
Elucidate as accurately as you can how each of the following individuals which would be affected by unanticipated inflation of 10 percent per year.
What is the share of Household A's income spent on education? Does this household consume more or less education if EF = 20 is provided by the government? What is the share of Household B's income spent on education?
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