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Suppose the price of housing increases to 3, but the price of food stays at 10.Rewrite Jane's budget constraint and draw it on a graph.Now suppose the price of housing decreases to 1.Rewrite her budget constraint again.When the price of housing increases does her budget constraint become steeper or flatter?When the price of housing decreases does her budget constraint become steeper or flatter?What happens when the price of food increases or decreases, but the price of housing stays at 2?
Assuming paper is sold in a competitive market, what is the market price? how many tons of paper will be produced per year at that price? what is the efficient annual output of paper? how can a corrective tax achieve efficiency?
Illustrtae what is the difference among cost-push and demand-pull inflation.
Describe the law of diminishing returns. Then discuss why you agree or disagree with following statements.
Fed Chairman Ben Bernanke finally confess that the Fed has been printing more new currency over last some months to help stimulate the economy and more recently noted economy may not yet be out of woods,
Assume that you're a member of the Board of Governors of Federal Reserve System. The economy is experiencing a sharp decline into a recessionary phase of the business cycle.
Ricardo believed that the target of economic analysis was to understand the distribution of income between three major classes: capitalists, workers, and landowners.
Illustrate what is the price elasticity of demand. From the price elasticity elucidate the new rates be for 2009 if the demand increases at the same rate.
Let's say you live in Montana and you like to ride mechanical bulls in bars on Friday nights. You estimate that over the next year there's a 4% probability you will incur medical bills of $20,000
Find out two articles that discuss the local, state, or federal taxation of a good. Describe the effects of taxation and price controls on the economy.
Discuss the criticisms leveled by so called "classical" economists at the Keynesian model described above, from the initial simplistic responses
A new taco-making machinery which is similar in size and cost to hog dog carts has encouraged more street vendors to begin selling tacos.
Describe events that might lead to a disequilibrium in the market for gasoline.
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