The marginal propensity to consume is:      the amount of consumption at a specific level of income.            the fraction of a change in income that is consumed or spent.            a change in saving divided by a change in consumption.

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A: Cross price elasticity of demand measures the how much percentage change in quantity demanded of one…

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A: Economies of scale or increasing returns to scale is when the increase in output is more than the…

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A: Given information: With 10 workers, you produce 90 units With 11 workers, you produce 110 units With…

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A: Consumer theory is referred to the study of how an individual decides on spending their wealth on…

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A: Consumer surplus is the difference between maximum price willing to pay and the market price.

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A: The difference between the money collected from the sale of an output and the expenses of all inputs…

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A: Slope of the demand curve is when their price increase from P1 to P2 and the resulting change in…

Q: Q1. Explain the different types of Elasticity of supply giving one example each.

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A: Cost of production is incurred in the production of goods and services in the economy, these costs…

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A: Given that, Borrowed amount = 200,000 Rate of interest = 5% (Compounded Semi-Annually) Semi-Annual…

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A: Intertemporal Consumption choice decision: This is an example of the Intertemporal consumption…

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Q: Given the following income, spending, and savings data, please answer parts a-g below : Disposable…

A: Disposable income is the sum of consumption and savings Marginal propensity to consume measures the…

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A: Variance refers to the statistical measurement used to calculate how far each number is from the…

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A: Industries are defined as the accumulation of business entities that are engaged in the production…

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A: Profit: The difference between an economic entity's revenue from its outputs and the opportunity…

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A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

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A: Externality refers to the side effects of economic activity. There are negative externalities…

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A: Small and the mid sized enterprises or SMEs are referred to the businesses which can maintain…

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A: Willingness to Pay is defined as the maximum price that consumer is willing to pay for a specific…

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A: Introduction  LRAS- long run aggregate supply  SRAS- short run aggregate supply

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A: The time value of money refers to the concept that a sum of money is worth more now than the same…

Q: In the space below, insert the names for X and Y axis, graph LRAS and SRAS and AD line, and…

A: The aggregate demand and aggregate supply model helps us to determine the national income and also…

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A: A consumer is a rational person who wants to gain the maximum satisfaction level from paying the…

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A: Abatement Cost is defined as the cost or expenditure that tends to reduce pressure on the natural…

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Q: There are four axioms that underpin Expected Utility Theory. Match the names of these axioms to the…

A: Expected Utility Theory: When payoff is uncertain we use a very popular economic hypothesis called…

Q: Q2. Suppose a consumer seeks to maximize the utility function U (x, y) = (x + 2) (y + 1), where and…

A: U(x,y) = (x+2)(y+1) Budget Constraint = Px*x + Py*y = I

Q: 5. Say’s Law _____________ because ___________.  The Law of demand is _____ true because:   Always…

A: Say’s Law defines the relationship between income and production by stating that, in order to earn…