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How can the three basic assumptions of human behavior ( people are rational, people respond to incenititives and optimal decisions are made on the margin) be called the backbone of supply and demand?
He has an endowment of w1 = 100 and w2 = 0 and faces relative prices p1/p2 = 2. If the relative price decreases to 1, what are the Slutzky substitution and income effects on the consumption of good 1?
Analysts have estimated the present values of the following effects over the expected useful life of the pool: PV (million dollars) State grant: 2.2 Construction and maintenance costs: 12.5 Personnel costs: 8.2 Revenue from county residents: 8.6 Reve..
Discuss the types of situations where you would expect to see non-constant variance in the data. Provide examples to support your response. Describe a specific instance where heteroscedasticity would be a problem and the remedial measures that could ..
"Anyone who tells you that markets left to their own devices always lead to socially beneficial outcomes is talking utter nonsense." Do you agree with this statement? Defend your position.
Could you please explain why long run supply curve can be downward sloping and implication for behaviours of price as demand increases over long run.
the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500. What is the average total cost.
Suppose the Federal Reserve decided to purchase $10 billion worth of government securities in the open market. How will the lending capacity of the banking system be affected if the reserve requirement is 20 percent? How will banks induce investors t..
Although firm expects the order to be of 6 units, determine the minimum average cost of the firm with these different order sizes.
draw the indifference curve for someone deciding how to allocate time between work and leisure. suppose the wage increases. is it possible that the person's consumption would fall? is this plausible?
Assume that in a private closed economy consumption is $240 billion and investment is $50 billion, both at the $280 billion level of domestic output.
The equation for the original demand curve is Q=50-6.25P. Find the new demand equation when demand increases by 20% (Round to one decimal place). Q=___ - ___P. Find the new equilibrium price and quantity after demand increases 20%. P= ___ Q=___ (Roun..
A 20 year coupon bond with face value $100,000 and a 4% coupon rate has a yield to maturity i = 0.08. What is the value of the annual coupon payment? What is the price of this coupon bond?
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