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Suppose air travel is a normal good. Also, jet fuel used in commerical airplanes is an input in the production of air travel. If consumers' incomes go up and the price of jet fuel falls, which of the following can we predict about the quantity and price (airfares) in the market for air travel?
A.) Quantity will go up; change in price is ambiguous
B.) Quantity will fall; price will go up
C.) Quantity will go up; price will fall
D.) Quantity will fall; change in price is ambiguous
q1. are there any hiring standards that should be avoided? identify them also explain why they should be avoided?q2.
Use the supply and demand analysis of the market for reserves to explain how primary credit facility puts a ceiling on the federal funds rate and how interest on excess reserves puts a floor on the federal funds rate. (Use Graph)
What is the present value of the following future receipt: $16,000 63 years from now at 10.5% compounded annually? What is the accumulated value of series of payment of $ 250 at the end of each year for 25 years at 12.5% compounded annually?
Between Medicare and Medicaid, which program is doing a better job at balancing costs, quality, and access to medical care and why?
What is meant by the locational effect of varying prices in the Weber Model? How does it impact a firm’s ultimate locational decision?
Consider a beach that is one mile long and populated by 2,000 people (uniformly distributed). A particular location on this beach is identified by the number x , where 0 \leq x \leq 1 . There are two concession facilities that sell ice cream, Store 1..
Consider an income support program (similar to AFDC after 1967) in which a family with no income would receive $1500 in cash benefits per month, and if the family receives income from working Y, At what income Y would benefits be eliminated? Suppose ..
Think of another good that you have purchased recently (or you could continue with the good you selected in TDA I). Be specific (e.g. is it breakfast cereal in general or Cheerios cereal specifically). If the price of this item increases, how would t..
A monopolist firm serves 6 consumers. Each of the consumers only buy one unit of the good. Two consumers buy one unit if the price is lower or equal than $100 and the other four consumers buy one unit if the price is lower or equal than $10. The firm..
Consider two countries (Home and Foreign) that produce goods 1 (with labor and capital) and 2 (with labor and land) according to the production functions described in problems 2 and 3. Initially, both countries have the same supply of labor (100 unit..
Derive the indirect cost and the indirect profit function associated with the two factor Cobb-Douglas Production function. Explain the role of Lemmas in your derivation and why are they needed in modeling work.
Describe atleast 4 ways in which a firm can limit a worker's shirking. Ground your answer in an explicit theoretical framework(that you clearly state) that explains worker shirking behaviour.
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