Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Suppose Mike’s utility consists of consuming two ordinary goods: Hotdogs (normal good) and beer (inferior good). Quantity and price for hotdogs and beer are Xh, Xb, Ph and Pb and his income is I. Drawing a clean and clear graph, answer the following questions. Show the answer to all the parts on one graph.
Note: Put beer on the horizontal axes and hotdogs on the vertical axes.
a. Draw Mike’s indifference curve, budget line and show the optimal point on the graph.
b. Suppose government decreases excise tax on beer. Draw the new budget line and show the new optimal point. (Hint: pay attention to the type of the two goods.) (2 marks)
c. Show the income effect, substitution effect and total effect.
d. Refer to your graph, are these two goods substitutes, complements or unrelated?
Consider the following multiplicative demand function where QD = quantity demanded, P = selling price, and Y = disposable income:
The Federal Reserve Bank of St. Louis maintains a Web page devoted to international economic trends.
Illustrate what an identification and discussion of economic issues of special concern at the present time or in the future.
(note: for this problem assume that all cash flows are stated in actual dollars and interest is market rate) Nike is considering three mutually exclusive alternatives for an inventory tracking and control system at one of its major assembly plants.
Explain why a person starting up a small business probably stands a better chance of raising money by applying for a bank loan than by issuing bonds. Banks now control only about half as much of the total financial intermediary assets as they did abo..
Joint Distribution of Weather Conditions and Commuting Times
How will the Fed's relatively recent authorization to pay interest
XSU is located in the middle of a residential neighborhood. The residents of the surrounding 4 blocks notice that street parking is a problem while classes are in session. Explain under what conditions (if any) the building of additional parking lots..
A produce distributor uses 1,200 packing crates a month, and each crate is purchased at a cost of $16. The manager has assigned an annual carrying cost of 20 percent of the purchase price per crate. What would the net change (with its direction) in t..
It is likely that a pro trade production growth effect will lead to an expansion of trade since the presence of inferior goods is relatively rare. Explain.
The Washington Consensus, corporate personhood, the IMF, World Bank and etc. have created a global economic and political framework. Specifically using the book, “Bad Samaritans”, discuss the current socio-political and economic world order within th..
The Australian dollar continued to rise by another 20 percent against the U.S. dollar in between 2010 and 2012. How would this have affected Billabong? Is there anything that Billabong might have done to limit its long-term economic expo- sure to cha..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd