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For chapter 3 question one, they want us to graph a typical indifference curve for the following utility function and determing whether they have convex indifferences curve. For A - E the answers give an arbitrary answer. How do you do A - E generally (ie, NOT using numbers like 60 or 100).
Using the simple household model C=[C(0)]+[C(1)]*(Y-t), assume that C(0) is $1000, taxes are $100, and C(1) is .5. What would be the impact on consumption spending if household incomes were to rise by $500? (Ignore the multiplier effects here.) What ..
illustrate what type of unemployment will then occur. What is the natural rate of unemployment.
In 2012, the price of corn was $8 a bushel. In 2014, a huge harvest caused the price to drop to about $4 a bushel because quantity demanded for the corn was less than the quantity supplied. If quantity demanded for corn is much less than quantity sup..
A system which was established with a cost of $1000000 five years ago has a market value of $ 5000 with a salvage value of $30000 after 1 year and $25000 after 2 year and $ 15000 after 3 year the annual worth of the challenger will be $ 65000 perform..
You are an investment analyst. The retail market that you have been investing in, tobacco, has been hit by an increase in sales taxes that are levied on tobacco sellers. Assume that the price elasticity of demand for tobacco is close to zero, whil..
Compute the new equilibrium wage and the new number of jobs. Will the number of jobs increase or decrease.
The demand functions faced by a firm in two different markets are: Q1 = 600 – 10 p1 and Q2 = 800 – 10 p2. The firm has constant marginal costs of production equal to $20. Find the optimal prices and output if the firm price discriminate in the third ..
What element(s) would you give as the cause(s) of Colbert’s failure to achieve his master plan for France?
Consider a situation in which the Brazilian inflation rate is expected to significantly increase. Assess the impact on the nominal interest rate in Brazil and the value of its currency. If the International Fisher Effect holds, how will higher inflat..
Suppose the federal budget deficit for the year was $100 billion and the economy was in a recession. If the economy had been at potential GDP, it is estimated that tax revenues would have been $60 billion higher and government spending on transfer pa..
What were the major areas of disagreement between John Maynard Keynes and the classical economists?
Suppose consumer 1 has the demand function given by D1(p) = 15−p and consumer 2 has the demand function given by D2(p) = (20 − p)/3. At what price the total quantity demanded by the two consumers is 7?
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