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Trevor consumes two goods: fruit (good x) and vegetables (good y). His demand for fruit is given by x(px,m)=.04m-4.24px. His income is $322, the price of fruit is $2, the price of vegetables is $1. If the price of vegetables rises to $3, calculate total change in quantity demanded, the substitution effect, and the income effect. Is fruit a normal or inferior good?
The discussion centered on Barnett’s pending grievance concerning her recently completed layoff. Green, a nonunion employee, asked Barnett if she had said that Green had not been laid off because she was providing sexual favors to a supervisor. What ..
Assume that after the exchange of one permit, the marginal cost of abatement is for the firm that sold the permit for $170 also the marginal cost of the firm
You are attempting to construct an optimal portfolio consisting of T-bills and a risky portfolio. The expected return on the risky portfolio is 19% and the standard deviation is 25%. The T-bill rate is 5.3%. (a) If you put 45% of your funds in T-bill..
Illustrate what would be the most optimal number of spaces, and Illustrate what are these corresponding prices.
Find the equilibrium level of real GDP. What is the multiplier in this model? Assume investment increases by $10,000, what is the new equilibrium? Use a "Keynesian Cross" (45 degree line) graph to show the equilibrium level of real GDP in parts ‘a’ a..
Explain how would you test the hypothesis that the two population means are the same.
Prove utilizing a graph, that a diagonal line through the original would intersect each indifference curve once.
Picture Assume the market is in equilibrium in the graph shown at demand D and supply S1. If the supply curve shifts to S2, and a new equilibrium is reached. Equilibrium quantity increase from 4 to 4.5 units.
List the service that most likely to have network effects within 5 years. Google Fiber (providing GBit Internet access to homes) Purchase of Nest (maker of home thermostats and smoke detectors) Purchase of several robotics companies (Boston Dynamics,..
Explore how firms in monopolistic competition differentiate their products or services to generate a market niche and gain more control over their pricing. To what extent can product differentiation create barriers to entry?
A firm is considering whether the following project should be undertaken if its life is 10 years and it has no salvage value. The firm uses an interest rate of 10% to evaluate engineering projects. The Net Revenue below is dollars per year for the li..
You are in a class with one other student. It is the end of the semester and final exams are in one week. Your teacher has said the final exam will be graded so that anyone who scores the class average on the final exam will receive a B in the class.
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