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Q. Describe Consumer Price Index?
Consumer Price Index:Consumer price index (CPI) is a measure of overall price level paid by consumers for various services and goods they purchase. Retail price information is gathered on each type of product and then weighted according to its significance in overall consumer spending, to construct CPI. Annual or monthly changes in CPI provide a good measure of the rate of consumer price inflation.
Suppose that nominal interest income is taxed at a rate of 30%. Calculate the before-tax real interest rate and the after-tax real interest rate if the nominal interest rate is 6%
how does the charging the monoply a specific tax per unit affect the monopoly optmum and 5the welfare of consumer
"Take a monopolist with a constant average cost. The higher is the elasticity of demand at the chosen monopoly price, the higher is the monopolist's profit-to-revenue ratio." Expla
a) Describe and derive the equilibrium contract offered to high risk individuals. b) Describe and derive the equilibrium contract offe
explain the marginal produtivity theory
2ALBr3+3K2so4--->6KBr+1Al2(so4)3
Qdx=-30p+0.10+4pr+4t
"price is becoming cheaper,yet the demand for car is not rising".does it mean law of demand is not operative?
If a minimum wage were imposed below the competitive equilibrium what would we expect to observe in the effected labor markets?
1. Suppose the wage rate is w = 1. An agent is working 6 hours per day and consumes 5 units of goods per day. Suppose that the agent claims to be indifferent between his current
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