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Assume that good x and y are substitutes.
a. Show graphically and explain the effect on the bundle selected that will maximize utility if the price of good x falls.
b. Draw and explain the demand curve for good x and the price-consumption curve for good y.
c. Show graphically and explain the income and substitution effects for the price change.
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Explain what would happen to equilibrium price and quantity in the market for Pepsi if the following occurred (be sure to indicate WHY it happens as well)
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The nation of Spendistan has a much higher marginal propensity to consume than does the nation of Savistan. A global financial crisis has caused both nations to fall into a recession and both nations have just enacted $30 Billion rise in Government S..
What is a one invention that had good impact on the international economy and why. What were the impacts of this invention were impact good or bad.
How much of Nm and Nw can you advise to use, how much M and W will be produced from the levels of nitrogen in (a) and determine the value marginal products of the two enterprises.
The rate of return on an investment in medical education
A firm making more than a normal profit may still be experiencing an economic loss. An inferior good is a good whose demand decreases as its prices decreases. As new firms enter a monopolistically competitive market, the demand faced by each competin..
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Does the lender gain or lose from this unexpectedly high inflation. Explain does borrower gain or lose.
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