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Boris budgets $40 week for his morning coffee with milk. He likes it only if it is prepared with 3 parts coffee, 2 part milk U= min {3/2M,C}. Coffee costs $2/oz, milk $1/ oz. (For the questions below, show your work briefly)
A. How much coffee and how much milk Boris buy per week?
B. How much coffee and how much milk Boris per week if the price of coffee rises ro $6 / oz?
C. Graph the two budget constraints and the two optimal bundles with coffee on the x-axis. On the graph, show how much of the total change is due to the income effect? How much to the substitution effect?
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Client agencies are the agencies that exist principally to serve the needs of certain interest groups or clients. The first group to be created was:
Consider an economy where, consumer’s utility function is given as U(C,L)=C-(1/2)L2 . where C is consumption and L is labor. The production technology is Y=(1.6)L-(1/2)L2 . The turnover cost per labor is (0.36)/(w/p). What happens to t as real wage i..
How would you elucidate the impact of each of the following events on a production possibilities curve for factory and farm goods (you don't need to draw a graph, just describe what would change).
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q1. prepare five-year revenue and return on sales objectives. justify your objectives. you should be able to derive an
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