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Good 1 is a normal good and good 2 is an inferior good. Using 3 budget lines and 2 indifference curves, illustrate the effect of an increase in P2 on the consumption of both x1 and x2. Label income and substitution effects for both goods.
Is the apple pie market perfectly competitive? Why or why not? b. With this data, draw a graph of the linear demand curve for Granny's apple pies. c. Find the price elasticity of demand at each of of the three prices.
Honda uses flexible plants in manufacturing of its cars. Discuss where this method of production results in optimum output.
Why do points on a utility possibility curve represent efficient allocations of resources? Why must the utility possibility curve be downward sloping.
The setup cost is $100 per order up to 99. For orders of less than a pallet, the setup cost is $200. The setup cost for pallet loads is $1000. The holding cost is 1% of the purchasing cost per item per week.
Are the assumptions the same as under a simple linear regression. What does TSLS imply about the data if a strong F is found.
determine what sales price must be obtained at the end of that period in order for Amjay to break even, when the interest is 12 percent.
the last major conflict between the US army also Native Americans took place at
As per the rule of optimal input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the company.
Add a downward sloping demand curve, and show the profit maximizing quantity and price. Indicate the profit as an area on your diagram. Show the deadweight loss.
How do automatic stabilizers affect budget deficits and surpluses? How would automatic stabilizers be affected by an annually balanced budget rule? Why do automatic stabilizers minimize the lag problems with fiscal policy?
Apply the aggregate demand/aggregate supply framework to predict how the chained CPI could potentially impact the economy in the short-run. Evaluate the long-run impacts of the change.
Illustrate what is the reason the productivity also real incomes of workers in the industrially advanced economies have risen historically partly.
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