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Q1. Most restaurant customers tip according to a percentage rule between 15 and 25 percent of the bill. Diners who have dinner and a $20 bottle of wine usually pay the same percentage of the bottle price as diners who order a $100 bottle. Why, when the same efforts must be made to uncork and pour both bottles?
Q2. Starting with the estimated demand function for Chevrolets given in problem suppose the average value of the independent variables changes to N=225 million, I= 12,000, PF=10,000, Pg=100 cents, A=250,000, and p1=0(ie. The incentives are phased out)
(a) Find the equation of the new demand curve for Chevrolets.
(b) if Pc is 10,000, find the value of Qc?
Elicidate the Consumption and Government Spending equal to what. Would you expect to find out a few relatively large firms or many relatively small company.
Draw the production possibility frontiers for the 2 countries. Draw the world relative supply curve for manufactures.
what happen if Marlowe obtains 9 units of utility per dollar spent on apples and 6 units of utility per dollar spent on oranges, then Marlowe.
Evalute the shape of the indifference curves of the following utility functions and find MRS for each function.
Assuming that there are no direct expenditure offsets to fiscal policy, how much should the government increase taxes?
Graphical demand and supply analysis, explain the impact on price and quantity in the market for petrol if oil production is disrupted.
The Acme Paper Company lowers its price of envelopes (1,000 count) from $6 to $5.40. If its sales increase by 20 percent following the price decrease, what is the elasticity coefficient?
A consumer buys only two goods, X & Y. a) If the MRS between X and Y is 2 and the marginal utility of X is 20, what is the marginal utility of Y?
Assume that marginal utility of good A is 4 times the marginal utility of good b. The firm can compute all points on its total cost curve if it knows.
Explain why is the usa called a democratic federal republic and how is our organization of government different than the canadian, israeli, japanese or french democracies.
When looking at a cheaper dollar, you will find that this will affect our economy. We are able to export more goods and services given the cheaper dollar. How do you think the US can support a cheaper dollar?
A series of quarterly payments of $750 for 20 years is economically equivalent to what present sum, if the quarterly payments are invested at an annual rate of 12% compounded quarterly?
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