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Henry initially consumes the quantity of pens and pencils shown as B in figure 2. After the prices of both goods change, he buys combination A. From figure 2 and these facts, it must be true that . . .
A) Henry prefers A to B.
B) Henry prefers B to A.
C) Henry is indifferent between A and B.
D) Henry considers pens and pencils to be perfect substitutes.
E) Henry preferences cannot be determined from the information given.
Currently there is a debate about whether high employment rates in the US are the result of cyclical factors or structural factors. Describe this debate? What impact might immigration have on the different types of unemployment?
Compared with perfect competition, quantity produced in monopolistic competition is inefficient as price is higher than marginal cost (i.e. allocative inefficiency). Why do some economists argue that even if price is higher than marginal cost, it doe..
Construct a Capital Allocation Line for a portfolio consisting of the T-bills and the risky portfolio. Draw the line and indicate the y-intercept and the point where the portfolio is entirely made up of risky assets. What is the slope of this line?
In 2020, Ahmed decides to invest in a wind turbine that would produce and sell electricity to the local electric utility. He decides to buy a smaller, used turbine.
Using lists (bullets and numbers) in documents
clearly show on youre graph the old equlibrium price and quantity. Can you tell for certain whether the new equlibrium price will be higher or lower than the old equilibrium price?briefly explain.
Illustrate what is the opportunity cost of a potholder for Martha. What is the opportunity cost of a potholder for Stewart.
Determine the conditions that may exist for a manager of this good or service may decide to move forward with operations even with the initial costs of operations is more than the potential revenue.
Suppose that an investor has a choice between buying this security or purchasing a different security that also costs $ 3,000 today but pays off $3,300 with security in one year. Explain in words, how an investor’s choice of which security to purchas..
A manufacturer has been selling 1600 television sets a week at 370 dollars each. A market survey indicates that for each 36 dollars rebate offered to the buyer, the number of sets sold will increase by 60 per week. Find out the demand function.
Suppose that the only input used in the generation of solar energy is sunlight
Suppose that a small nation produces mushrooms for domestic consumption also possible export.
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