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Suppose the price of x1 is $5 and the price of x2 is $1 and Toni's income is $20.
Suppose Toni gets a $5 gift card that can only be used for the purchase of x1 and there is no resale value of the gift card. With the gift card, the commodity bundle (1,20) is on Toni's budget constraint.
True
False
An important way to reduce water pollution from farms is to plant a buffer zone of bushes between crops and the water. Economists estimate that for each bush planted there is a $20 gain in reduced pollution. Market supply and demand curve for the bus..
Which of the following is not a valid generalization concerning the relationship between price and costs for a purely competitive seller in the short run?
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A Technology Management graduate student bought a motorcycle for $30,000, paying a down payment of $10,000. The dealership agrees to take the bike back for $8,000 at the end of 4 years. The student’s uncle owns the dealership. If the monthly payment ..
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