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Price of good X is $50.
(a) What is the consumer's income on budget line B1?
(b) What is the price of good Y on Budget line B1?
(c) What is the equation of the budget line B1, given the prices and income that you have determined?
(d) What is the consumer's marginal rate of substitution when she is at equilibrium at point A?
(e) What are the prices of X and Y on budget line B2? You may assume that the income is the same as budget line B1.
(f) What are the prices of X and Y on budget line B3. You may assume that the income is the same as budget line B1.
(g) Assume that the prices remain at the levels indicated by B1. However, income increases such that the budget line changes from B1 to B3. What is the income level at B3?
Human errors will always occur as discussed by Reason and there are two ways to view the problem of human error. Discuss the two ways.
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Polycorp wishes to issue a 90 day bank bill with a face value of $3,000,000. If the current 90 day rate is 9% how much will Polycorp issue the bill for. Calculate to the nearest dollar.
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