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Suppose a person with an income of $60,000 per year rents 52 movies per year at a price of $1 per movie. When the person's income rises to $65,000, he or she rents 63 movies per year at the same price per movie. What is the implied income elasticity of demand for movies? Are movies a normal good or an inferior good?
Sketch a supply-demand diagram of the US Treasury bond market to illustrate the effects on it of the developments cited in part A. Label your diagram clearly.
Analyze the current macroeconomic situation and its impact on Walmart and Starbucks. Explore in particular explain how the two companies' respond to the macroeconomic conditions in terms of their.
Using your answers above, why does the growth rate of real GDP differ depending on the base year? Explain how the technique of Chain-Weighted Real GDP alleviates this problem.
Assume you are looking at data for an economy that uses only two inputs, physical capital and labour. Table shows output for different combinations of labour and capital.
Illustrate what do you think would happen to sale and price of DVDs after this.
our company values the three tons of channel steel at $12,000. Illustrate what is your optimal bid. Elucidate how all step by step calculations to arrive at solution.
The subsequent tables Explain how the trade-offs you face in allocating the time you will spend in studying each subject.
Johnny has allocated $30 toward coffee and tea and feels that coffee and tea are perfect substitutes. Due to differences in caffeine levels, his MRS of tea for coffee equals 2.
Compute the change in the level of real GDP demanded for each of the following values of the MPC. Then, calculate the change if the government, instead of reducing its purchases, increased autonomous net taxes by $10 billion.
One could argue that a long commute to work is an undesirable characteristic of any job. If most people live in the suburbs.
Illustrate what price should the owners of blue skies set for engines in order to avoid this problem and maximize overall profits.
f P falls below AC, what is result for firm? Firm loses money 16. In late-19th century, both firms and markets expanded. How did this impact competition in many markets.
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