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Suppose that a consumer has $375 to spend in good X and good Y.The price of good Xis $25 and the price of good Y is $75. 1)write down the consumer`s budget constraint.What is the Maximum quantity of good X he can afford?What is the maximum quantity if good Y he can afford? 2)Draw a graph of the budget constraint. 3)Now suppose the price of good Y increase from $75 to $125 but the price of good X stays the same,write down the new budget constraint and graph it.
A firm sells its product in a perfectly competitive market where other firms charge a price of $70 per unit. The firm’s total costs are C(Q) = 50 + 10Q + 2Q2. How much output should the firm produce in the short run? units. What price should the firm..
The cost of capital is. To produce where marginal cost is equal to marginal revenue is called
This week, you have a car to sell. You want to purchase a new vehicle and the dealer is offering you, well, almost nothing for the car you have now. So you’re going to sell it outright. Describe the competitive positioning you face and are going to t..
Please describe the policy suggestions you might have for the Federal Open Market Committee if you were appointed adviser to the Federal Reserve Bank. Imagine the country is experiencing economic slump and the FOMC is not sure what monetary policy ac..
Explain the role of the Federal Reserve, who monitors it and is it effective in its job? Evaluate one of the strategies of the Federal Reserve.
Among which of the following receives government subsidies that are in place to protect the population rather than for economic reasons.
What are the effects of capital formation by comparing the ppf,at the present time and ten years in the future,for two economies,one with a high and the other with alow rateof capital formation.
The main drawback of the Herfindahl-Hirschman Index (HHI) is that:
Solve for aggregate expenditures (AE) as a function of Y, and compute the equilibrium level of national income. Elucidate your equilibrium in a diagram with AE.
explain why a $100 billion increase in govermant purchases of goods and services will lead to a large increase in aggregate deamnd than a $100 billion decrease in taxes?
People buy insurance. The highest incidence of those without health insurance occurs in which age category? One result of asymmetric information in health insurance markets is
What is the value of the covariance between the initial investment W0 and the investment value at the end of the month W1? Are those variables independent? Compute E[W1], Var(W1) and sd(W1).
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