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Assume a two-good world in which the market basket is 10 units of good A and 2 units of good B. Good A costs $4 and good B costs $1 in year.
Furthermore, assume that in year 2 the prices rise to $5 and $2, respectively. Calculate the inflation rate in year 2. Will the choice of base year affect your answer?
for all questions complete this part first. draw a demand and supply graph. be sure to label the vertical y axes as
1. Is A an Evolutionary Stable Strategy (ESS)? Is B ESS? 2. What population mixes, if any, will this converge to? 3. For what mix of A to B will this converge to A? For what mix will it converge to B? For what mix will it converge to a mix?
Assume the economy is in long run full employment equilibrium with unemployment at the full employment rate of 6% and inflation of 4%. In this situation what would happen to aggregate demand and aggregate supply
Important information regarding Price Elasticity of Demand and Total Revenue
The demand function for Newton's Donuts has been estimated as follows:
(a) Describe the initial choice of heating by an elderly individual; (b) Analyse the effects of an increase in the cost of heating on the consumption of heating and the well-being of that individual before and after the implementation of governmen..
Describe three ways we can use macroeconomic analysis, with one original example for each way
Explain why should a government be concerned with the pricing of products that a company transfers.
A welding machine that costs £4,600,000 is expected to have a life of 5 years and a scrap value of approximately £300,000. Depreciation is first calculated on the basis of the equal installment method.
Which policy – the tax or the subsidy – would cause less pollution to be discharged into the river? Explain.
What factors affect how quickly U.S. businesses will actually increase their consumption of renewable fuels versus other energy sources?
analyze the internal environment of the Eaton Corporation to determine that company's strengths and weaknesses. Based on the strengths and weaknesses you discovered, determine what steps the company could take to positively impact the company's co..
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