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The optimal amount of x1, x2, P1, P2 and income are given by the following: x subscript 1 equal fraction numerator 3 I over denominator 5 P subscript 1 end fraction space space space space space space space space space space x subscript 2 equal fraction numerator 2 I over denominator 5 P subscript 2 end fraction The original prices are: P1=11 P2=22 The original income is: I =3,562 The new price of P1 is the following: P1'=44 Assume that the price of x1 has changed from P1 to P1'. What is the optimal quantity of x1 at the new income I' and the P1' ? (hint: this question is asking you obtain x1*C in the notes)
the lecture described how taxing income may change savings behavior. suppose instead that the government taxed
How does a price ceiling undermine the rationing function of market-determined prices How could rationing coupons insure that consumers with the highest values get the limited amount of a good supplied when government price ceilings create shorta..
Under the contract, they would ship to you 2,000 titanium bolts per month at a price of $1,000 per bolt. Your assistant has just brought you an article from a trade publication that indicates another company has developed a new technology that red..
during the countrys current economic malaise along with that of our local economy what can individuals and businesses
Bulldog Shipping, Inc. has purchased new cargo containers for $500,000. MACRS with a five-year recovery period and an estimated salvage value of $96,000 is to be utilized to write off the capital investment. The company expects to realize net revenue..
Economists often argue that wage rates reflect productivity. Yet, the wages of house painters have increased nearly as rapidly as the national average, even though these workers use approximately the same production methods as they did 50 years ago.
Compare the two countries with respect to the components of GDP and Have these percentages changed over the 10 years? If so find out why.
Two countries, Sportsland and Foodland, have similar total quantities of labor, capital, and natural resources. Both can produce two goods, figs and footballs. Sportsland’s resources are particularly well suited to the production
Singer Taylor Swift has a monopoly over a scarce resource: herself. She is the only person who can produce a Taylor Swift concert.
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a real estate brokerage firm is hired to sell condominium units of a government housing project. the government is not
According to the logic of backward induction what should be the equilibrium of the game? a) Firm 1 chooses a high price, Firm 2 chooses a high price. b) Firm 1 chooses a high price, Firm 2 chooses a low price.
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