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Erin has $120 to spend on games (X) and all other goods (Y). Games cost $12 each, and all other goods (AOG) have a composite price of $1 each. Assume that Erin's preferences are represented by convex indifference curves. Erin's cousin wants to give her either 3 games or $36 for her birthday. a. Assume that Erin has preferences such that she is indifferent between the two gifts. Using an indifference map and budget line analysis, show Erin's optimal choice before and after the gift. b. Assume that Erin now has preferences such that she prefers the cash gift. Using a separate graph from part (a), graph Erin's optimal choice before and after gift.
Discuss how government intervention to address a market failure might worsen the situation. Provide an example of where government intervention does work and why that is so.
Elucidate how do the firms decide how much to charge. Use the Cyberlibrary or internet search engines to pick your own example of price discrimination.
Illustrate if the company has the cash necessary for the installation would you recommend the change. Illustrate if the company has to float 5,000,000php worth of noncallable bonds at 15%.
An engineering company requested that $500000 be spent on software and hardware to improve the efficiency of some control systems.
If the potential recipient decides to work, she will receive a wage of $8 per hour. Show the budget line for the potential recipient using the above information.
Assume in this country they save 20% of their income, population grows at 3% every year also depreciation of capital occurs at 10% every year.
Find equilibrium price and equilibrium quantity by solving equations mathematically. Suppose a Research study is published showing that koby beef increases risk for a heart attack resulting in a reduction of 150 pounds of koby beef consumption per..
What is the value of the economic's MPC. Data applies to an economy with only two sectors-households and firms no government or export.
Explain why does the profit motive does not automatically avoid air pollution in the production of steel and other products.
Describe of the amount of deposit money and the size of the money multiplier. Explain these relationships.
Explain is there a relationship among the age of an unemployed individual and the number of weeks of unemployment.
Explain why do changes in bank reserves resulting from open-market operations by the fed produce multiple changes in checkable deposits in the economy.
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