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Suppose that you never carry cash. Your pay check of $1,000 per month is deposited directly into your checking account, and you spend your money at a constant rate so that at the end of each month your checking account balance is zero.
a. What is your average money balance during the day period?
b. how would each of the following changes affect your average monthly balance?
i. you are paid 4500 twice monthly rather than $1000 each month
ii. you are uncertain about your total spending each month.
iii. you spend a lot at the beginning of the month and little at the end of the month.
iv. your monthly income increases.
Trace a copy of this diagram. Graphically depict the substitution and income effects. 2.2. Which effect is strongest? How can you tell?
Determine the breakeven resale price 15 years from now of an apartment house that can be bought today for $549,000. Its annual net income is $64,000. The owner wants a 10% annual return on her investment.
Why might a company use an indirect cost discrimination scheme versus direct cost discrimination
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9.every year management and labour negotiate a new employment contract by sending their proposals to an arbitrator who
A firm faces two consumers with the following demand functions: p1(q1) = 400 − q1. p2(q2) = 300 − q2. The firm’s constant marginal cost of production is, c = 50. The firm may charge an access fee and per unit price (that the consumers can choose not ..
Assuming that factor markets are otherwise free and competitive, explain why the higher real wage would fail to increase the share of labor income in national income.
elucidate explain why the cost structure associated with many kinds of information goods also services might imply a
Elucidate why a currency depreciation leads to an improvement in a countries balance of trade.
Is the model heteroscedastic? Check the KB results to determine your answer.
qx 100 - 0.4pxqx 40 0.2pxa. at what price level would demand for good x equal zero?b. at what price level would
Tyrion, who likes beer and wine, lives in Westeros, where people buy things with Silver Stags (SS). The price of wine is 5SS per flagon and the price of beer is 2.5SS per jug. Tyrion’s daily income is 50SS.
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