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Given the prices of the two holidays, is the income elasticity of demand for exotic holidays positive or negative? Are exotic holidays a normal good or an inferior good? Are local holidays a normal good or an inferior good?
Two kilometers downstream from the paper mill, Maissahger Brewery produces beer using water from the river.
Given the following data, compute your combined income tax rate (CTR) assuming you deduct allowable expenses on yourincometax forms
The US government decides to reduce the government budget deficit by increasing taxes and keeping government expenditures at the existing level. What are the effects of increasing taxes in the short and medium run for the US economy? Is it possible t..
The public cash withdrawals from banks decrease the central bank liabilities and shrink the size of the banking system balance sheet. Do you agree or not? Explain your answer. Use the Fed and the banking balance sheet to support your answer.
The market price of pizza in College Town decreased recently. Some students in an economics class suggest that the price fell because several new pizza parlors opened for business in the area. If the equilibrium quantity of pizza increased, then the ..
The demand for apartments is P=1200-Q while the supply is given by P=Q units. What is the slope of the supply curve? What is the P-intercept of the supply curve? What is the slope of the demand curve? What is the P-intercept of the demand curve? What..
Calculate the substitution and income effect for the utility function: u(x,y) = x + lny and show that the Slutsky equation applies to those cases.
Thatcher Corporation's bonds will mature in 5 years. The bonds have a face value of $1,000 and an 9% coupon rate, paid semiannually.
Suppose the monopolist faces the following demand curve: P = 100 3Q. Marginal cost of production is constant and equal to $10, and there are no fixed costs. What is the monopolist’s profit maximizing level of output? What price will the profit maximi..
Setting up nurse practitioner clinics to serve 20,000 newborns in Georgia would cost $6 million. This program would increase life expectancy at birth from 75.1 years to 75.3 years. How many life years would be gained? What is the cost per life year? ..
Write a proposal letter of 1–2 pages to a respected community figure asking him or her to deliver a lecture and dinner speech at your annual festival. Follow the proposal letter guidelines explained in your assigned readings for this unit.
There are one hundred jobs and one hundred workers in a competitive job market. All the workers are equally productive. All employers dislike female workers but vary by the degree of their dislike. Job one's employer dislikes females by $100 a week. ..
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