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Discuss the Security Market Line (What it depicts, what variable measures its slope and its intercept). Show a graphical example using the market portfolio.
Illustrate what is the marginal income for each 10,000 increase in the quantity sold. Illustrate what recording fee would you advise Johnny to demand from the record organization.
Find the demand for L and R. (Hint: Use your result from part 3 and the budget constraint.) Now assume that the price of right shoes increases. What will be the substitu- tion eect from this price change? Explain.
Illustrate what additional effects follow this initial effect. Illustrate what is total effect of tax cut on aggregate demand.
What do you think that Apple's ability to control the pricing of downloaded song is likely to change in the future.
Assume that apples are an inferior good. Draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. EXPLAIN what happens in the short-run if custo..
What determines price elasticity of demand for a product. key determinants of price elasticity of demand are as follows: i. Availability of close substitutes- gas stations across street, very elastic.
Suppose the demand curve for a product is represented by a typical downward-sloping curve. Now suppose that the demand for this product increases. Which of the following statements accurately predicts the resulting increase in price?
To pay for these paths, it then taxes Andrew, Beth, and Cathy the prices a+b+c=MC. If the taxes are set so that each resident shares the cost evenly (a=b=c), explain how many paths will get built.
A perfectly competitive painted necktie industry has a large number of potential entrants. Each firm has an identical cost structure such that long-run average cost is minimized at an output of 20 units (qi = 20). What is the industry's long-run supp..
Does NAFTA affect the automobile industry's decisions on what to do with labor and capital costs? If so, how? In your opinion, was this trade agreement good for the United States and Mexico from an economic standpoint?
What would happen to autonomous consumption if household debt fell and the interest rate rose over the same time period?
Who compiles data for the national accounting in US? How GDP is measured through income approach? How GDP is measured through expenditure approach? What are the differences between income and expenditure approaches in measuring GDP?
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