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Bill Katz prefers more of good 1 to less and he prefers less of good 2 to more. Bill has convex preferences. Draw his indifference curve with good 1 on the horizontal axis and good 2 on the vertical axis. Is the curve positively or negative slopped? Why? Is the curve convex or concave? Why?
Social Responsibility: To include intercultural competence, knowledge of civic responsibility, and the ability to engage effectively in regional, national, and global communities. Why is active economic citizenship particularly important for a succes..
What is the present worth of $500.00 in month1, $510.00, in month 2, and amounts increasing by $10 a month through month 36, if the interest rate is 15% per year, compounded continuously? Please show work and use functional notation where needed: ex...
The current price floor in the agricultural lettuce market is $1 per head. The price floor makes it such that the price of lettuce is 25% higher than equilibrium price and 100 heads of lettuce are demanded at the price of $1. Assuming that the elasti..
According to the graphical method used in class, ?gure out how a decrease in taxes (T) shifts the IS curve. Is this policy an expansionary ?scal policy or a contractionary ?scal policy? Why?[Hint: Use the Keynesian Cross]
Other things equal, what effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram to show the expected effects of the equilibrium price level and the level of real output.
For 5 years you have owned and operated a small company, ABC Desks, that designs and manufactures high-end custom wooden desks. The business is incorporated and pays state and federal taxes separate from your personal income. Develop an Income Statem..
What happens to the profits of boat makers in the short run. What happens to the number of boat makers in the long run.
Illustrate what will be the short run effect of government imposition of a lump sum tax per firm equal to 170? If this tax remains
Find the equilibrium quantity and equilibrium price for the commodity whose supply and demand functions are given.
Suppose that the total revenue function of a firm is given by TR(q) = 120q - 2q^2, where q is the level of output. Find the level of output q that will maximize the firm’s total revenue. Also, compute the maximum amount of total revenue received by t..
Seller surplus is _________.
why do you think drug companies spend so much on advertising for drugs they have a patent on (essentially giving them monopoly power) but so little on drugs with an expired patent when generic alternatives are available
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