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Q1. Suppose that Ike is loss averse. In the morning, Ike's stockbroker calls to tell him that he has gained $1000 on his stock portfolio. In the evening, his accountant calls to tell him that he owes an extra $1000 in taxes. At the end of the day, does Ike feel emotionally neutral since the dollar value of the gain in his stock portfolio exactly offsets the amount of extra taxes he has to pay? Explain.
Q2. Consider the CES utility function U (x, y) = (√x + √y)21. Find the expression for the indifference curve and plot an indifference curve forU = 64.2. Using the Lagrangian method, find the optimal quantities of X and Y consumed, given Px, Py and I (income).3. Find whether good X and good Y are inferior or normal.4. Can you say whether X & Y are substitutes or complements? Explain.
Each station's objective is to maximize its viewing audience, in order to maximize the station advertising revenue.
Make sure to make available examples of real world to strengthen your position of wherever this might be case
The People's Bank of China, the country's central bank, raised the reserve requirements of its top commercial banks to put a squeeze on the credit market
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The cause and effect on how and why there was a government shut down a month ago.
Use the 2007 numbers in the first column to compute, for each of the four countries, the percentage gap between the steady-state ratio.
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You read in a business magazine that computer firms are reaping high profits. Assume that the computer market is perfectly competitive.
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What can you determine about consumer demand for your product from this information.
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