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Say that the price of good X is Px =$1 ,the price of good Y is Py =$2 and income I=$18 .The marginal rate of substitution between X and Y (MRSyx) is constant at 3. Show the budget constraint and some representative indifference curves on a graph (rough sketch) with good X on x axis . What is the optimal bundle under these conditions?
the government decides to tax cookbooks because they feel that they encourage overeating and can lead to health issues
a suppose the economy is initially in long run equilibrium and the u.s. stock market has a prolonged decrease in
Why does google care weather people think it is large or small? Do highway billboards actually provide competition for Google. Briefly explain. Please state wheather the actual demand were a)to the right or to the left the where the company thou..
the state of california recently considered passing a tax on the services of doctors in that state in order to raise
jason has been making equal annual payments of 7500 to repay a college loan. he has just made an annual payment and now
The economy takes a downturn
two firms a and b have complete control of the supply of mineral water and both have zero costs. their best reply
government action is based on majority rule, whereas market action is based on mutual consent. The market allows for proportional representation of minorities, but minorities must yield to the views of the majority when activities are undertaken t..
The clerk answered, "I can't do that." When the customer started to leave the store, the clerk hastily offered, "However, I am authorized to give you a 40 percent discount on any pair in the store.
Decide the effect of trade on the real returns on dry land and wetland (call nominal returns RD and RW). Hint: how do changes in LC and LR affect the marginal product of land?
The benefits of free trade are something that most economists are willing to recognize. And yet the question of optimal trade policy can be actually quite complicated. How do the readings in this group reveal this complexity.
Find the effective interest rate for a borrower with pi=0.9. Find the effective interest rate for a borrower withpi=0.7 - explain how group lending can overcome the adverse selection problem.
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