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For most normal goods the income effect and the substitution effect work in the same direction; so when the price of a good falls,both the income and substitute effects lead to a higher quantity demanded. how would this change if the good is an inferior good?
A small start-up company invested in a new plant with an initial cost of $10 million. Operating costs for the plant were $3 million per year for 7 years. There was a special one-time charge of $1 million in year 2 to correct unexpected equipment prob..
q.a computer manufacturer developed the following demand curve.q - 700p 80i - 500s 0.01awhere p is the price of a
Why profits encourage entry into purely competitive industries and explain how losses encourage exit from purely competitive industries.
With respect to tariffs and quotas, it can generally be said that:
An increase in the price of a good leads to. The consumption bundle that maximizes utility for a consumer is the bundle that. When the price of a good changes, ______ influence(s) the change in consumption. The ______ is the change in consumption cau..
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $2,700 per year, paid at the beginning of each year, in which case maintenance is provide. Alternatively, she can buy a use..
FastWash is a new service that allows businesses, such as restaurants and hotels, to send out linens to be washed, dryed, and folded. They are new to the market and the first business of their kind to enter. After some initial research, FastWash has ..
q1. assume a small nation has following statistics its consumption expenditure is 15 million investment is 2 million
A fleet manager must choose between two trucks to purchase for a company's fleet. The company will keep either truck for 4 years. Truck A costs $29,000 and has a market value of $16,000 after 4 years. Truck B costs $33,000 and has a market value of $..
Two firms, A and B, have complete control of the supply of mineral water and both have zero costs. The market (inverse) demand function is given by: P = 200 – 10Q, where Q = qA (output of seller A) + qB (output of seller B). Their best reply function..
Social Security and Medicare are in financial trouble. The money will run out for the future generations if something is not done shortly. In detail, explain how you would save both systems for the future generation.
In a certain building construction project , 6500 feet of ductwork is required. Today's price of a 24-inch diameter duct is 127.50$ per foot. If the cost of the ductwork is expected to increase 7% per year into the foreseeable future. How many laptop..
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