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Question about indirect utility function
Show that the indirect utility fuction v(p,y) = [x1(p,y))^rho + (x2(p,y))^rho]^1/rho is a quasi convex function of prices and income
Explain how does the availability of substitutes affect purchasing decisions.
Elucidate your answer using proper economic terms and analysis.
Illustrate what value for r is optimal for the seller, and what then is the seller's expected profit.
According to your estimate, elucidate what happens to the Transit Authorityas revenue when the fare increases.
Suppose the demand curve for a product is given by Q = 300-2P+4I where 'I' is average income measured in thousands of dollars. The supply curve is Q = 3P - 50.
Consider that demand elasticity is defined as the percentage change in quantity divided
Compute the price-cost margin for every firm and indicate which has more pricing power and why.
Sketch Sally's indifference curves and explain her consumption choices in term of marginal utility.
Provide a report to management of the firm as to whether or not it should continue to operate at a loss?
What are the needs of big companies presently. Do you think it is paying higher salary so people will be more motivated.
Assume that the Fed is needs to keep the inflation rate so provide an anchor for inflation expectations.
Illustrate what is more important for them to monitor and target, inflation or interest rates.
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