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1. After the unexpected exceptional performance of a company, all of its employees were given a one-time bonus. This consequently led to a rightward shift of the demand curve for laptops manufactured by the company and a leftward shift of the demand curve for flash drives. (Please briefly explain your answer.) This shows that laptops are:
A. complementary goods
B. inferior goods
C. normal goods
D. substitutes
2. What actions should Bank of America take to retain its top investment advisors?
An economics professor of a monetary economics course assigns the following short-answer assignment: “Differences in nominal interest rates are due to differences in money supply growth rates. In recent years, Russia has had much different nominal in..
It is impossible for a price change to cause no substitution, income, or toal effects. If you believe the statement is false, sketch a graph demonstrating how a price change could cause no substitution, income, or total effects. A large pharmaceutica..
Suppose the demand for eggs is: Q=9,000-3,000P and the supply of eggs is: Q=-500+2,000P, where quantity is measured in millions (of eggs). Find the market-clearing price and quantity for eggs. Now suppose the cost of producing eggs increases such tha..
What are the economic constraints firms of different sizes encounter?
“Policy analysis is finding out what governments do, why they do it, and what difference, if any, it makes” Discuss your understanding of what policy analysis contains and what policy makers can learn from policy analysis. Provide at least two examp..
In 1975 and 2009, China's GDP per capita grew at an average rate of 7.9% per year whereas GDP per capita in United States grew at an average rate of 1.8%. In 2009, U.S. GDP per capita was $41, 099 and Chinese GDP per capita was $7, 634. Assuming that..
Price ceiling is the law that sets a maximum price below the equilibrium market price, but a price floor is the law that sets a maximum price above the market equilibrium price.
Find the marginal rate of techincal substitution and discuss how MRTSlk changes as the firm uses more L, holding output consta
Schaefer Organic Farms purchased a new tractor at a cost of $80,000. Annual operating cash inflows are expected to be $30,000 each year for four years. At the end of the tractor's useful life, the salvage value of the tractor is expected to be $5,000..
Consider the following HYPOTHETICAL scenario: Imagine an island economy that is periodically struck by an epidemic disease that affects only children. What would be the market solution to this problem if the island economy operated as a pure market e..
Find the upper and lower bounds on the prices of the European Call and the Put options and then find their ranges. (i.e. all possible values).
Assume there is a labor force of 16 workers at an isolated site. During boom the firm faces a demand curve of P=100-Q. During recession it faces a curve of 80-2Q. Like likelihoods of Boom and Recession are 60% and 40%, respectively. How many workers ..
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