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Calculate the following elasticities and classify good x. The market situation is as follows: m=$100, Px=Py=$10
1. X*=(12/Px)-(Py/m)
a. elasticity of Px
b. elasticity of Py
c. elasticity of m
Consider a finite set of prizes X and probabilities P on them. Suppose that an expected utility maximizer's preferences > on P have an expected utility show with utility function on prizes u : X->R.
Using the following table, compute the 95% confidence intervals for the expected annual return of the four different investments.
The New Zealand dollar pushed toward U.S.55c yesterday as the greenback was dumped on a surprise U.S. Federal Reserve initiative to pump more money into a still-choked financial system.
Assume that you have a budget of $30 to spend on milk and cereal only. What is the most you can purchase of cereal? What is the opportunity cost of three units of cereal? If you purchase 5 units of cereal (Qc=5), then how many of milk can you purchas..
The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function under the new tax policy Qs = 4.171P - 110. Illustrate how much money would a typical consumer save each month as a result of the proposed le..
why the enrollment in colleges also universities increases at times of economic recession
Joe can make apple pie at a lower opportunity cost than Sandy but Sandy can make more apple pies per day than Joe.
when markets for goods as well as services gain access to the Internet, more consumers and more businesses participate in the market.
What are two ways that economists have tried to quantify the value of non-market work so that it can be added to GDP to produce a more inclusive measure of economic activity?
Annual savings due to energy efficiency thermo well have a most likely value of $30,000. The most optimistic value is $40,000 with a probability of 0.2 and a most pessimistic value of $20,000 at 0.3. The First Cost is $150,000, the interest rate 10%,..
MPC = 0.75. Calculate the spending multiplier and the tax multiplier. Spending multiplier = 2.5. Calculate the MPC and the tax multiplier. Tax multiplier = 4.0. Calculate the MPC and the spending multiplier
Do you think the U.S. Post Office should be protected from competition What about a pharmaceutical company that has just spent millions to develop a life-saving drug
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