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Over the past five years American consumers have decreased their frequency of taking vacations. It is believed that a few factors may have led to this decrease. The recession of 2009 effectively stalled income growth in the country while at the same time the prices of vacation travel steadily rose. Given this information show with indifference mapping the change in consumer optimization between vacations as good x and “other goods” as good y the impact of:
a. The reduction of income
b. The increase in prices
c. What if instead of any change to income or prices (you can assume they just stay constant), the true reason for the reduction was that past bad experiences on vacations just led consumers to want less of them.
The future of cities in the united states and in other countries will be determine by their abilities to benefit from the _____________ and to minimize or counterbalance the __________________.
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Sketch the isoquant corresponding to an output level of 100 units What is the MRTS for this production function? Does the isoquant exhibit a diminishing MRTS?
q1. what action can firms to take to ensure that they realize whatever economies of scale are created by their volume
What part of the business cycle is the U. S. economy currently in? Evaluate your answer using three economic indicators. Analyze the trends and forecast the direction of the business cycle in the next six months using your economic indicators.
Discuss economic forces (supply factors, demand factors, government policy) that affect the health care market.
Gains from trade will result if a country specializes.
According to the BLS, the CPI rose 3.8% in August of this year compared to a year earlier. Food prices rose 4.6% and clothing prices were up 4.2%, while new car prices rose 3.8%, and medical care was up 3.2%. What percentage change in the CPI up unti..
What economic example could be used to demonstrate incentives that were used to "nudge" buyers/sellers
To reduce her personal carbon footprint, Zooey is buying a new hybrid. She has negotiated a price of $21,900 and will trade in her old car for $2350. She will put another $850 with it and borrow the remainder at 6% interest compounded monthly for 4 y..
Which of the following recieves government subsidies that are in place to protect the population rather than the economic reason.
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