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Let money income be $10 while the price of good 1 is $2 and the price of 2 is $1. Draw a budget line. Now draw the new budget lines according to each of the following changes in prices and income.
(i) The price of good 1 decreases from $2 to $1
(ii) The price of good 2 increases from $1 to $2 and income increases to $20
(iii) Both prices are doubled but income is tripled
Describe what will happen to supply or demand for the dollar and for the euro if more European tourists come to the US for vacations. Be sure to include whether each currency rises or falls in value.
Illustrate what are the equilibrium values of the interest rate, price level, consumption and investment. What are the new short-run equilibrium values of the interest rate, price level, consumption and investment.
assume an economy lasts for 2 periods. in period 1 only 1 agent is born this agent lives for 2 periods. in period 2 two
How many shares of common stock must be issued as well as at what price, to raise the required capital.
What are some of the other key roles in the Planning Process.
q.explain how do changes in demand affect prices?explain how do changes in supply in one market affect other
What is the firm's profit-maximizing (or loss minimizing) output (Q) level? What is the amount of its economic profits (or losses) at this output level? What would be the firm's decision at this price/output level?
An upward-sloping aggregated supply curve indicates that
Illustrate what impact on quantity demanded and supplied for new cars will be as a result. Used demand and supply diagram and clear explanation.
Cost-Curve Shifters The following graph shows the average total cost curve, average variable cost curve, and average fixed cost curve for Hilary's Pizza Parlor when the retail price Hilary pays for pepperoni, including sales tax, is $7 per pound.
When the price of gasoline increased from 3 to 4 dollars per gallon, the demand for gasoline decreased from 100,000 gallons to 90,000 daily. Also, the demand for a $50,000 SUV dropped from 3000 to 2500 cars per month. Estimate the change in the total..
Explain how does economists distinguish between the absolute and relative sizes of the public debt.
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