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Andy’s decision to increase his purchase of a particular good by 150 units from its previous level of 50 units was brought about by the fact that another good was on sale at 50% off the initial price. Explain, with correct numerical calculations, whether these two goods are complement or substitute goods.
Calculate how the hurricane affects the income of each worker and of each remaining orchard owner. What happens to the income of Ectenia as a whole?
Zelda Industries is the only firm of its kind in the world. Due largely to historical accident, it began producing streganomas in 1985 in a vacant warehouse. This rate is comparable to the average interest rate that large banks paid on deposits over ..
The annual additional energy requirement is 350,000,000 kilowatt-hours. The cost of energy from Canada is 1.48 cents per kilowatt-hour for the first year. The price will be escalated at 4 percent annually for the 20-year contract period.
Suppose that currency in circulation is $600 billion, the amount of checkable deposits is $900 billion, traveler’s checks are $0, excess reserves are $15 billion, and the required reserve ratio is .15. a. Calculate the M1 money supply, the currency-d..
Assume that a consumer purchases a combination of product A and product B such that the MUa/Pa=8 and MUb/Pb=6. To maximize utility without spending more money, the consumer should:
Graphically show the income and substitution effect using indifference curves and budget constraints and discuss why it is important to look at this when the price of a good changes.
The vehicle of choice most often for a U.S. investor who wishes to exercise a measure of control over its foreign investment is a(n): a. interlocking directorate. b. investment trust. c. joint venture. d. all of the above.
Shalimar Jubal has determined that demand for her phone cases is given by Q = 250 - 4P and a cost equation given by C = 50 + .5Q. Determine the optimal price and quantity for the firm. Determine the new optimal price and quantity.
q.suppose there is a business firm that holds a global monopoly on a particular product but is currently selling the
The expected return to a U.S. resident from putting funds into a Mexico peso deposit yielding a simple annual nominal return of 12% while the U.S. dollar is expected to depreciate at a simple rate of 20% over the year would be a simple rate of ______..
Consider a competitive market in long run equilibrium (all firms are identical with a U-shaped cost structure, there is free entry/exit in the market, and there are no other external price effects). Suppose the government imposes a fixed fee per year..
A firm sells a product in a purely competitive market. Illustrate what would the price of wheat be in the absence of trade.
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