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Refer to the graphs shown. The market is computers. Which graph best represents the impact of cheaper memory chips on the computer market?
Using carefully labelled demand and supply diagrams, show the impacts on equilibrium price and quantity in the following situations: New cars are normal goods. What will happen to the equilibrium price and quantity of new cars if the price of gasolin..
Recall the following equations which describe an ISLM economy: C(YT)= C1+b*(YT) I(r) = I1 d*r G = G1 , T = T 1 Md= L1+e*Yf*r r e a l M s = MP Suppose the economy is described by the following equations: C(Y −T)=40+0.7*(Y −T) I(r) = 300 − 30r G ..
The manager of a canned food processing plant is trying to decide between two labelingmachines. Determine which should be selected on the basis of rate of return with a MARR of 20%per year.
Children are the age group most likely to live in poverty. In any given month, about 20% of children are living in households subsisting below the poverty line. Children make up about 25% of the U.S. population as a whole, but they make up more than ..
One common criticism in the optimal taxation literature is the specification of the social welfare function. The optimal taxation literature (I have the Mirrlees framework in mind) relies on first specifying a social welfare function. what kind of po..
The demand curve for product X is given by QD x = 220 − PX + 3PY + 0.001I where PY is the price of a related good Y, and I is income. The supply curve for good X is given by QS X = 10 + 3PX. What is the marginal effect of an increase in PY on the equ..
According to the Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. Suppose that as part of the restructuring plan Mitsubishi conducts an analysis of how labor and cap..
Suppose that you are indifferent in between se designations, save for differential risk of death, and illustrate what does your willingness to pay for these vacation tells you about Explain how much you value your life.
We do, however, have free trade in corn, which is fermented and distilled to make ethanol, and accounts for approximately 55% of the cost. Elucidate the effective rate of protection on the process of turning corn into ethanol.
the average price level is $4 per unit also the quantity of money. Illustrate what happens to velocity if the average price level falls to $2 per unit, the money delivery is $2000 also real GDP is 4,000 units.
Calculate a function M(α), which shows the maximized value of f that can be achieved, given any real number α. Is this function continuous? Assume that a consumer has the utility function U(x,y) = 3x+y, where x and y represent the quantities of two g..
What is the cost function associated with producing y units of output? Assume now that input prices are (w1,w2). What is the cost function associated with producing y units of output?
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