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Suppose that, from an initial consumer equilibrium position, the price of good X rises while the price of good Y remains the same. Using indifference curve analysis, explain how and why the consumer's relative consumption of the two goods will change. Now suppose that the price of labour falls. Explain how producers would respond, using the isocost/isoquant framework. What would happen to the capital/labour ratio?
What is the definition of consumer surplus? Provide two examples of consumer surplus for a specific purchase made in the past, one example from each team member
Bank X would have to have a higher amount of capital on its balance sheet than Bank Y according to Federal banking Regulations.
Suppose, initially, the interest rate parity condition holds. Then at some point, U.S. interest rates are 4 percent more than rates in the EU. Would you expect the dollar to appreciate or depreciate against the euro, and by how much?
Share markets all over the world often increase or decrease together. What does a rise in the stock market indicate to you about the level of current and expected growth in the world economy?
A perpetual bond pays coupons of 6% every yr on a face value of $1,000. The rate of return on the bond is 8.9% every yr.
How does Locke and Rousseau agree or disagree with Adam Smiths concept of humans have the natural tendency to "truck, barter, and exchange,"?
Every few weeks now a petition pops up in Facebook newsfeeds urging the government to forgive all student debt. The comment from the person posting
Why is it important to consider the price of natural resources before starting a business?
Our company uses an after-tax MARR of 12% and MACRS depreciation, and falls in the 38% total income tax bracket (ITR). Select the most economical alternative
q. answer the following question using the keynesian model of a closed economy. suppose the federal government would
Suppose that the monthly demand for AIDS treatment is Pn = 100 − Qn in North America and Ps = 60 − Qs in Sub-Saharan Africa due to lower income. The marginal and average variable cost of producing a month’s treatment is $20. Calculate the implied pro..
(a) If the company uses the after-tax minimum attractive rate of return of 10%, should it lease or purchase the plant?
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