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Problem
Sarah spends her monthly entertainment budget on books and movies. Sarah's initial utility-maximizing combination of books and movies is five movies and two books a month. Assume the price of books falls. Sarah's new utility-maximizing combination of books and movies is five movies and four books. Given this information, can we say whether movies are a normal good?
Does a strike for a raise of 5 cents an hour make any sense? What kinds of long-term benefits might a union gain from such a strike?
According to the IS-LM model, what happens to the interest rate, income, consumption, and investment under the following circumstances? Support your answer with suitable diagrams.
Prepare all journal entries, including December 31 adjusting entries, to record these transactions and the forward contract.
Each TV commercial takes 1 minute, and each radio commercial takes 0.5 minutes to air. The boss tells you that he doesn't want more than 25 TV commercials because he gets sick of watching the same thing over and over again. The objective is to fin..
Suppose the Council of Economic Advisors (CEA) hired you as an Economist (Economic consultant). The head of the council tells that she believes the current unemployment rate of 9% is too high. They would like to increase real aggregate output (RGDP).
Consider the market for pineapples in a small island nation. The domestic demand curve (in Island Dollars) is P = 60 - 3QD and the domestic supply curve is P = 10 + 2QS. What is the market equilibrium price and quantity
Two identical firms save money from polluting. A firm's marginal saving from emitting an amount e are given by 10-2e. The two firms differ in their impact on ambient pollution concentrations. Two units of emission from firm 1 result in one unit of am..
How might one define a composite commodity for ground transportation?
Coca-Cola cuts its price below that of Pepsi in an attempt to increase its market share.
Economic Darwinism (Thorstien Veblen). Need a 6 page (APA standard w/abstract & 4 references) explaining this term and a practical application with example.
Presume that during the past three years, equilibrium real GDP in a country rose steadily, from $450 billion to $500 billion, however even though the position of its aggregate demand curve remained unchanged, its equilibrium price level steadily decl..
At the profit-maximizing output level you reported in question 3, is the El Dorado Star making the greatest possible amount of TOTAL REVENUE? Is this what you expected? Explain BRIEFLY
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