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Q1. Jeremy derives all of his utility from consuming milk shakes; he devotes hi entire $20 allowance to milk shakes each week. Suppose the price of milk shakes rise from $2 to $4. Compute Jeremy's Compensating Variation and Equivalent Variation.
Q2. Sets out the aggregate demand and aggregate supply schedules in Japan. Potential GDP is 600 trillion yen. What is the short-run macroeconomic equilibrium? Does Japan have an inflationary gap or a recessionary gap and what is its magnitude?
Consider an economy in which taxes, planned investment, government spending on goods also services also net exports are autonomous
one laborer can only produce either 5 unots of necessity per month or 10 units of luxury per month. On a graph draw the ppf. where does the ppf intersect on thy axis and where does the ppf intersect on the x aaxis.
If the price falls to $2, how does quantity demanded change. How does Bert's consumer surplus change. Show these changes in your graph.
Illustrate what is the euro-denominated return on Dutch deposits for this investor. What is the (riskless) euro-denominated return on British deposits for this investor using forward cover.
Explain how was the second law and end-use analysis linked to socially constructed scarcity.
Hiro Nakamura is CEO of the Cola King Bottling Company, a small regional producer operating in the Pacific Northwest. Nakamura is considering two alternative expansion proposals
Assuming that your interest rate, i, is equal to 14% annually, what would be your maximum offer (purchase price) on this machine?
Show analytically that equilibrium price under Cournot is greater than price under perfect competition but lower than monopoly price.
Compute the (point) price elasticity of demand when price is $700. Is demand elastic or inelastic. Find the point at which point elasticity is equal to -1.
Illustrate what is the shape of an indifference curve if there are economic bads on both axies.
What value of y survives as a solution if all firms are competing for high ability workers.
When consumer is provided a $50 gift certificate that is good only at store X, she moves to a new equilibrium at point D. Prices of goods X and Y. Explain how many units of product Y could be purchased at point A.
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