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Peter's utility function is u(x, y) = x + 2y where x is the number of ounces of coffee and y is the quantity of sugar in grams. Let unit prices be given by Px = 6 cents, Py = 2 cents, and assume that Peter has $9 to spend on coffee and sugar. Find Peter's best choice, in terms of quantities of coffee and sugar. Illustrate it graphically.
Suppose that the aggregate demand curve in a particular year is given by the algebraic expression: Y = 3000 + 1000/P, where Y is the aggregate output and P is t
You have won a contest and are allowed to choose between two prizes. One option is to receive $200 now and another $200 a year from now. The second option is $150 now and $255 a
compare the price elasticity of demand on two parallel demand curves for a given price and for a given quantity
what are the causes,consequences and remedy of measurement error?
a) Explain what is calculated by a correlation coefficient. b) Why do economists commonly find regression a more useful tool than correlation? c) In a sample of 102 men the corre
Suppose you have a model of capital investment by a U.S. rm. Imagine that yt, x1t and x2t are annual measures of investment, lagged pro t, and lagged capital stock, all in real do
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A bottling company has determined the number of machine breakdowns per month and their respective probabilities as given below: Number of Breakdowns Probability
what is the source of heteroseedasticity
Given for a closed economy: C = $20 + 0.50Y D I = $40 G = $10 Y D = Y- T 0 T 0 = $5 Determine: (a) the equilibrium
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