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Carmen's preferences are such that she is always indifferent between watching two movies or seeing one basketball game. Suppose that Carmen has an income of $90. If a movie costs $10, and a basketball game costs $18, what will Carmen's optimal consumption bundle be?
A.3 basketball games and 3 movies
B.2 basketball games and 5 movies
C. 9 movies
D.5 basketball games
Consider options on Microsoft stock. Suppose that there are call options with a strike price of $10 and put options with a strike price of $10, both with the expirations date of January 16th. Suppose that there is a 50% chance that the stock price wi..
If the cross-price elasticity between two goods is 1.5, the goods are ____________.
Illustrate what factor stores have in common behind their decline. Elucidate how would you conclude which were important also which were not.
Economists look at the differences between the short run and the long run in macroeconomics. Explain how might knowing this affect you as the manager of a large firm.
Why firms in artic nations are already developing specialized tanker ships and platforms for use in privately accessible artic areas? What are possible opportunity costs of opening Artic lands to private extraction of as-yet unavailable resource endo..
In the market for coffee, for many consumers:
Illustrate what does the term intellectual Property encompass also why are companies so concerned about protecting it
A young physician makes $180,000 per year with an annual salary increase of 2%.
Mr. Gonzalez wishes to sell a bond that has a face value of $1000. The bond bears an interest rate of 8%, with bond interest’s payable semi annually. Four years ago, $920 was paid for the bond. At least a 9% return (yield) on the investment is desire..
Consumers are not able to resell good 1. For p
Prove that inferior goods (goods with a negative income effect) have a backward bending income consumption curve. Prove that giffen goods have a positively sloped demand curve and a backward bending price consumption curve. Comment about substitution..
Assume to latest discoveries in biochemistry significantly lengthen our life expectancy. Illustrate what is the impact on the educational attainment of workers
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