John works for a government agency in California making $70,000 per year. He is being transferred to a branch office in Tennessee. The salary reduction associated with transfer is 11%. The Cost of Living Index (similar to consumer price index or equipment price index) in California is 132 whereas the Cost of Living Index in Tennessee is 95. a. How much extra income does John made as a result of the reduced Cost of Living? b. What is the adjusted salary of John based on the Cost of Living?

Q: Economic efficiency in a market requires that the market be allocatively and technically efficient.…

A: The change in utility from consuming an additional unit of a commodity is called marginal utility.…

Q: The Phillips curve represents the relationship between unemployment and inflation. You are required…

A: In the short run, the Phillips curve slopes downward, which indicates that there is a negative…

Q: 2nd attempt Greg has the following utility function: u = x0.55x0.45. He has an income of $96.00, and…

A:

Q: Suppose that the United States adopts a policy of deporting illegal immigrat workers. Before this…

A: Labour market : labour market is a market where the firms and households interacts. The firms…

Q: Given the utility function U= 0.4* X₁, 0.25 * X2, 0.35 * X3 and income M = 300, how much will the…

A: Optimal consumption bundle: The optimal consumption bundle is such that at that bundle the…

Q: Assume that the unit cost for a pair of levi jeans is $10 and that levi's desired markup on cost is…

A: The total amount of expenditure occurred on the production of services and goods is known as  TC(…

Q: T or F Everything we do has its opportunity cost. Why?

A: In economics, it is necessary to choose between several products because resources are limited in…

Q: According to a corporate customer, "hourly charging shifts economic incentives in the incorrect…

A: Given : "Hourly Charging shifts economic incentives in the incorrect direction" Economic incentives…

Q: what type of fiscal policy or monetary policy that is currently being implemented

A: The fluctuation in the economic activity is tracked by the business cycle. In an economy, the fall…

Q: If the law of one price holds for all goods in the long run, Select an answer and submit. For…

A: The real exchange rate tells us the price of a domestic basket of goods relative to the price of a…

Q: 13. A monopolist faces a constant marginal cost of $1 per unit and has no fixed costs. If the price…

A: Lerner index measures the monopoly power. Following is the formula of the Lerner index (P-MC) / P =…

Q: 3. Price taker model a. Graph the market (not the firm) for cotton in the very long run, assuming…

A: Price-taking firms are those that produce and sell a very small portion of the total market supply,…

Q: Briefly discuss what measuring inequality involves, and provide two examples for doing so.

A: Inequality means biasness that may incur in the society.

Q: Which of the following correctly predicts the Equilibrium Price and the Equilibrium Quantity in the…

A: A good's supply is the quantity produced and made available for sale by producers at various prices…

Q: EXERCISE 7 Aisha is considering how to allocate the next 6 hours of her free time. She could choose…

A: Budget Line: given the price of 2 goods and consumer’s income. The budget line shows different…

Q: In a college town, students choose between two providers of wireless internet access. All student…

A: Under a perfectly competitive market: A large number of buyers and sellers operate. All firms…

Q: a. What price will the monopolist charge for group O? What price will the monopolist charge for…

A: Q 2. Under third-degree price discrimination, a monopolist charges different prices from different…

Q: After a 2018 cyber-attack on Pegasystems, the Census Bureau decided to utilize cloud computing…

A: Given,  A Cyber Attack on Pegasystems Census Bureau is referred to as an agency which conducts the…

Q: Which of the following is true if a Price Ceiling of $5 is imposed on this market? O A. An Economic…

A: Price ceilings are established upper limits on what a seller is usually allowed to charge for a…

Q: Your business buys a delivery van for $28,000.  You figure the van will be useful for 5 years and…

A: Given  Cost of delivery van =$28,000 This van is useful for 5 years and its value at the end of 5…

Q: A fund is to be donated by wealthy man to provide scholarships to deserving students. The fund will…

A: In this case, compound interest is actually calculated here i.e. compound interest is actually the…

Q: 12. Over the last decade, robotic-drone a research and development company has researched in new…

A: Given information $90M sales annually with 20% probability. $76M sales annually with 45%…

Q: P Price E C D I B A Quantity Which of the following portrays the original Consumer Surplus before…

A: Consumer surplus is the difference between the price that the consumer is willing to pay and the…

Q: Using the information below, what is the Gross Value Added at Market Price? Output Sold Price per…

A: Gross value added at market price is calculated by subtracting the Intermediate cost from the value…

Q: If you were to make an analogy between the national accounts and the income statement of a…

A: GDP refers to the money value of all final goods and services that are produced within the…

Q: A monopolist who is able to practice perfect price discrimination    Question 10 options:   a)…

A: In case of monopolist ,  Under perfect price discrimination  The firm will charge the consumer's…

Q: evelop all of the mutually exclusive bundles from independent projects identified as A, B, and C.…

A: There are three projects, namely, A, B, and C that are independent of one another.

Q: Write  function for the average cost to produce x items. Then describe what happens to the average…

A:

Q: K For products A and B, the joint-cost function for a manufacturer is c The level of production that…

A:

Q: Definition The stock of money people hold to take advantage of future changes in the prices of…

A: Demand for money means that money is demanded as physical cash, current account and savings account…

Q: 17. A firm in a perfectly competitive industry faces the following long run total cost schedule: 2 4…

A: A perfectly competitive firm produces at P=MC=ATC in long run.  MC cuts ATC at its minimum point.…

Q: A company extracts minerals from a mine. The price per unit of extracted mineral is 10 while the…

A: Given that; Marginal cost of extraction in the first period MC0​=1/2q0 Marginal cost of extraction…

Q: Instructions: Use the tools provided 'AD2' and 'AS2' to plot AD and AS after the increase in…

A: In the new classical economics, there is self correcting tendency in the economy. The equilibrium…

Q: 18) An appliance company determines that in order to sell x dishwashers, the price per dishwasher…

A: The cost of producing an extra unit of services and goods is called MC(marginal cost). The extra…

Q: Given equation and questions I need answered are attached. Below are the answers to previous…

A: Given information: Q = 220 - P ---------> Demand equation STC = 1000 + 80Q - 3Q2 + (1/3)Q3…

Q: Desk purchased July 12 for $2,000; 8-year useful life; $600 salvage value.  Calculate MACRS…

A: The modified accelerated cost recovery system refers to the depreciation system used for tax…

Q: Considered the following data for an economy. Currency in circulation held by the public: CU = 400…

A: Monetary base is the sum of currency in circulation and the reserve.  Money multiplier is given by…

Q: In the long run, some firms will respond by Shift the demand curve, the supply curve, or both on the…

A: An efficient consumption level provides maximum satisfaction from economic activities. At this…

Q: A competitive firm produces output given by the production function Q = L0.25 K0.25, whereL and K…

A: Given:Q = L0.25K0.25C = 2L + 4KPrice = 4PHP

Q: The CARES Act of 2020 increased disposable income by $600 billion. If consumers spent $430 billion…

A: The Marginal Propensity to Consume (MPC) formula is given by: (Change in consumption)/(Change in…

Q: Consider three inputs of production: labour, physical capital and natural resources, and an economy…

A: Decreasing return to scale is when the increase in input will increase the output but the increase…

Q: If the krone was strengthening, did it take more kroner to exchange for a euro or fewer kroner?…

A: An exchange rate refers to a rate at which domestic currency is exchanged for foreign currencies.…

Q: Allegiant Airlines is considering an overbooking policy for one of its flights. The airplane has 50…

A: To find the average net profit of provided limits we need to find the expected level of reservations…

Q: 1. A monopolist is a of the product it sells. a seller that has the ability to control, to some…

A: A monopoly seller means one seller where mono means one and poly means to sell. So a monopolist is a…

Q: Quantity of kilowatt hours supplied: [ nstructions: Enter your response rounded to two decimal…

A: In a competitive market, a firm produces higher output than under a monopoly. The price charged by a…

Q: Use matrices to solve the following pairs of simultaneous equations: 3x + 4y = -1 and 5x - y = 6

A: Using a coefficient matrix, a variable matrix, and a constant matrix, a system of linear equations…

Q: At a bowling alley, the cost of shoe rental is $2.25 and the cost per game is $4.25. Iff (n)…

A: Total cost means to the total expense incurred in reaching a specific level of output; if such total…

Q: Suppose that bicycles are produced by a perfectly competitive, constant-cost industryWhich of the…

A: In case of Constant Cost Industry, supply curve is flat. The long run supply curve is horizontal. It…

Q: P3 PA Ps QA QB Qс What would be the Equilibrium Price and the Equilibrium Quantity if the Demand for…

A: Equilibrium is where demand curve intersects supply curve  The increase in demand means the…

Q: (Cooperation in ER systems) Suppose Latvia and Denmark both peg their exchange rates to the Euro.…

A: A currency peg is a strategy used to stabilize currency exchange rates between nations by having a…