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Explain, using the isoquant-isocost diagram, why a rise in the rental rate of capital coupled with no change in the wage rate will lead to a rise in the price of the capital-intensive good relative to the price of the labor-intensive good.
Note: You do not need to draw a graph; just explain what happens on a isoquant-isocost framework.
Calculate the price elasticity of gasoline. Calculate the price elasticity of demand for gasoline. Calculate the elasticity of supply using the information provided. Calculate the changes in consumer and producer surplus.
Computer Colleagues, Inc. wants its name on the new computer engineering building planned for Somewhere University. For naming rights, the university requires that 60% of the first cost of the building and 20% of the maintenance costs be covered by a..
Suppose that the nominal rate of interest is holding steady at 8 percent even as the anticipated rate of inflation rises.
q1. suppose that the government chooses conscription i.e. government services the representative consumer to supply
Imagine working at the Trading Desk at the New York Fed. Explain whether you would conduct open market purchases or sales in response to each of the following events. Justify your recommendation.
Two power plants are currently emitting 8,000 tons of pollution each (for a total of 1,600 tons). Pollution reduction costs for Plant 1 are given by MCR(1)=.02Q and for Plant 2 by MCR(2)=.03Q, where Q represents the number of tons of pollution reduct..
Original owners must sell their used cars. Original owners know what their cars are worth, but buyers can't determine a cars quality until they buy it.
Using an Edge worth Box, graph the initial allocation and draw the indifference curve for each consumer that runs through the initial allocation.
Suppose that in addition to repairing your car, you can also spend money advertising. If you repair your car for hours and spend A dollars advertising, your benefit (the amount you revive when you sell your car) is B(H,A)=220H-H^2+2A. Both H and A ar..
Which has a higher Y.T.M. and why? What would be the real return on bond A and B if the actual inflation rate is 3%?
How would each of the subsequent affect Helena's hand basket supply of worker.
Describe the determinants of varying levels of income. What factors determine a wages of a person
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