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There are two types of consumers of potatoes: 10 are rich and 50 are poor. Every rich consumer has a demand of 0 for a price of $500/ton; and his/her demand decreases by 1 ton each time the price increases by $1/ton. Every poor consumer has a demand of 0 for a price of $280/ton; and his/her demand decreases by 2 tons each time the price increases by $1/ton.
Interpret the differences between the demand of the rich and the demand of the poor.
What is the total market demand for potatoes?
Give the equation of the demand curve Q = D(P)?
The Dade Corporation is borrowing $300,000 for one year and paying $27,000 in interest to Miami National Bank. The Bank Requires a 20% compensating balance.
Justify that the objective of a benevolent government should be to maximize TPB(Q)-TSC(Q), by choosing the right level of Q. Then, write, interpret, and solve the resulting first order necessary condition for an optimum (remember the first order c..
Bridget has limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese.
If the elasticity of US exports with respect to the real exchange rate is very low, will this increase in private saving have a large or small effect on the U.S. real exchange rate
Over the past fifteen years the Heritage Foundation and Wall Street Journal have joined forces to make an annual Index of Economic Freedom.
Karen earns $75,000 in the current period and will earn $75,000 in the future. Assuming that these are the only two periods, and that banks in her country borrow and lend at an interest rate r = 0, draw her inter-temporal budget constraint.
Determine which is true of leakages and injections in the circular flow, the consumer price index measures changes in
Discuss the role of social diversity and business ethics as it relates to globalization? Consider how different cultures around world perform such business activities.
Philips Industries produces a certain product that can be sold directly to retail outlets or to the Superior firm for further processing and eventual sale as a completely different product.
Determine how can federal government spending crowd out private sector investment and consumption and does the exent of crowding out depend on whether or not government spending is financed by taxes.
Elucidate the one thing, regarding the role of the government that separates classical economic theories and Keynesian economic theory.
When the demand line is perfectly elastic, there is no deadweight loss after taxation and firms must not operate if the market price is less than ‘break-even' price.
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