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Suppose disposable income increases by $2,000. As a result, consumption increases by $1,500. Answer the following questions based on this information. Where appropriate, enter your answer as a decimal rather than as a percentage. The increase in savings resulting directly from this change in income is: 500$ The marginal propensity to save (MPS) is: 0.25
What is the marginal propensity to consume?
The city council of a small college town decides to regulate rents in order to reduce student living expenses. Suppose the annual market clearing rent for a two bedroom apartment has been $700 per month and that rents were expected to increase to $90..
Further assume that the marginal cost of producing a pack of cigarettes is $6, and that the market for cigarettes is perfectly competitive. Assume that each pack of cigarettes smokes does $6 worth of health damage to the smoker in the form of incr..
Your software development company has been contracted to build a tool that will manage user accounts and rights in an Active Directory environment. One of your developers tells you that he wants the tool to make use of direct manipulation.
q. the zinger company fabricates as well as sells a line of sewing machines. demand per period q for a scrupulous model
What would happen to GDP if the government hired unemployed workers, who had been amount $TR ain unemployment benefits, as government employees and now paid them $TR to do nothing? Explain.
In perfect competition, if one firm raises its price,
Determine whether or not government regulation to ensure fairness in the low-calorie, frozen microwavable food industry is needed. Cite the major reasons for government involvement in a market economy.
Illustrate what are the net benefits of this program. What would the net benefits be at a discount reate of 2 percent.
Explain the differences between the Federal Reserve and the U.S. Treasury? Be specific. Do they complement or compete against each other? Could one of then do the others job? Should one be allowed to do the others job? Why?
Explain what the political motives are behind more third world countries joining the international market. What is/are the motivational factors?
Suppose that the inverse demand curve is: p(q) = a − bq, and the cost function is: c(q) = cq. How much consumer surplus is generated when the price is p*? How much producer surplus is generated at p* If the monopolist can only set a linear price (tha..
Red Valve Co. of Carnegie, Pennsylvania, makes a control pinch valve that provides accurate, repeatable control of abrasive and corrosive slurries, outlasting gate, plug, ball, and even satellite coated valves. How much can the company afford to spen..
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