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An agent has a utility function over goods 1 and 2 of the form U = xc1 x d2 where c is your 1- digit number and d is your minimum number. The agent's income is equal to your 2-digit number. Initially, the price of good 1 is your median number and the price of good 2 is your individual number. Let the price of good 1 change to your maximum number. For good 1, determine for this price change the
a) Total price effect
b) The substitution effect
c) The income effect
total outlay method as a measure of elasticity with application
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QUESTION (a) What are the main types of unemployment? (b) Mauritius has been facing an alarming rate of unemployment during the last 5 years (i) What reasons could explai
Describe the characteristics of Monopolistic Competition
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There are three industrial firms in a quaint town of South Orange where the municipal government wants to reduce pollution to 120 units from uncontrolled level of 210 units. Three
What are the factors of evaluating a policy or institution? Factors to consider during evaluating a policy or institution comprise: • Internal and external constraints onto
Why does a production possibilities frontier with increasing opportunity costs have a bowed-out shape?
don''t tell, demonstrate statements
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