Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
You have $21 to spend on prawns and potatoes. Prawns cost $20 per kilo and potatoes cost $2 per kilo.
(a) Supposing you can buy as much or as little as you want of prawns and potatoes and you will spend the entire $21, then write down your budget constraint. You may simply write out the equation or draw the budget line. You don't need to do both.
(b) If you buy 2.5 kilos of potatoes, how many kilos of prawns can you afford?
(c) If your wants are to have twice as many (kilos) of prawns as (kilos) of potatoes, show that you would buy 0.5 kilo of potatoes and exactly 1 kilo of prawn. How much money will you spend on each? Remember you must spend exactly $21.
(d) If the price of potatoes rises to $3 per kilo and the price of prawns falls to $18 per kilo, then can you still purchase the quantity of prawns and potatoes you chose in (c)?
Based on your answer, argue that your welfare is likely to be greater in this new situation where the price of potatoes is higher, but the price of prawns is lower.
European Community (EC) An economic alliance, evaluated in 1957, designed to encourage trade and economic cooperation between its members. The EC is also called the European
What are a bank's primary reserves? When the Fed sets reserve requirements, what is its primary goal? Vault cash and deposits in the bank's account at the Fed are employed to s
Q. What is Adjusted Basis? Adjusted Basis - After a taxpayer's basis in property is determined, it should be adjusted upwardto include any additions of capital to the property
Explain the difference between performing the capital budgeting analysis from the parent firm’s perspective as opposed to the project perspective. The aim of the financial mana
Day count convention is a system used to determine the number of days between two coupon dates. It is important in calculating accrued interest and present value
#questAs an assistant vice president at a regional bank, your boss has tasked you to acquire $100 million of residential mortgages to be securitized in a pass-through MBS. There mu
Regional Banks Large banks like First Norwest, Chicago, Mellon and Crocker function regionally at the national level in a fashion same to money center banks. Regional banks ser
Q. Describes the Gordons dividend model? Gordon's Model: - Gordon's model is one more theory which contends that dividend policy is relevant for the value of the firm. Alternat
How do mergers affect consumers? A: The impacts mergers have on consumers vary widely. There may be a few inconvenience and anxiety when a customer's bank or branch is obtained
Treasury Inflation-Protected Securities (TIPS) are the inflation-indexed bonds, the US Treasury offers. The first offer was made in the year 1997. As the name sug
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd