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1. Assume that you were ready to buy a custom tailored dress (or men’s suit) and you are prepared to pay up to $200 for it. Also assume that the tailor is prepared to sell that item of clothing for as little as $100.
When you arrive at the tailor shop, the posted price for the item is $150. Discuss how this scenario relates to producer and consumer surplus and how such surpluses, if any, affect buying and manufacturing decisions
2. Discuss any recent purchases you have made and for which you feel that a similar rational seemed to be at work.
Price will increase; quantity cannot be determined. (Assume CD players are normal goods.) Which of following will happen to equilibrium price and equilibrium quantity for CD players
Compute the percentage that alter in quantity demanded of plane rides and train rides.
Over the past year the inflation has been 10%. The price of a used Ford SUV has fallen from $6,000 to $5,000, or 16.6%. By what percentage has the real price fallen?
Elucidate what happens to the official measure of GDP in each of the following situations.
How large is the bias in the CPI due to not immediately incorporating new goods.
Why has the application of the World Bank's standard Structural Adjustment Policies been counter-productive in many developing countries?
In your opinion, are the resources you devote to your education a form of consumption or a form of investment.
Discussion on game theory concept, basic application for planning also how game theory is used to model behavior; types of games and how they are played.
Elucidate however, you do not have to start making payments until you graduate from college 2 years from now.
An average yearly rate of 10 to 11 percent in the late 1980s. Illustrate what effect did this decline have on.
as government subsidizes investment likely with an investment tax credit the subsidy often applies to only various
Illustrate the monopoly solution and perfectly competitive solution in a clearly drawn graph. Calculate the deadweight loss due to monopoly.
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