A person who consumes wine and cheese gets a raise, so his income increases from $3,000 to $4,000. Show what happens if both wine and cheese are normal goods. Now show what happens if cheese is an inferior good.

Q: Define marginal product of labor and value of the marginal product oflabor. • Describe how a competi...

A: The marginal product of labor refers to an addition to the total product when one more unit of labor...

Q: Product Z is complementary to Product X. The price for Product Z goes up. A) The demand curve will s...

A: Complementary goods are those which are usually consumed in a fixed-proportion. When the price of a ...

Q: A large number of firms are capable of producing chocolate-covered cockroaches. The linear, upward s...

A: The linear, upward sloping supply curve starts on the price axis(y-axis) at $6 per box and is repres...

Q: Suposse a munufacture of widgets has a fixcost of $2500, a variable cost of $30 per widget ans sell ...

A: Costs are the expenses that a firm has to incur in its production activities. Revenue, on the other ...

Q: Economics Question

A: When the central bank purchases government securities on the open market, it increases the reserves ...

Q: 5 S- MSC 3 1 D- MSB 10 20 30 40 50 60 Quantity (units per day) In the above figure, at the equilibri...

A: Consumer surplus is the difference between what consumer is willing to pay for all the units consume...

Q: 2. Zulaikha and Ker Xin went to a shop to buy rice. Zulaikha wanted to buy 10kg of rice and Ker Xin ...

A: Price elasticity of demand is the responsiveness of quantity demanded when price changes. In other w...

Q: In which two market models would advertising be used most often? :        Pure competition and monop...

A: Option 1 is wrong because advertising is not used at all under pure competition. It is used under mo...

Q: how does the fiscal policy handle the major macroeconomic failures of inflation?

A: Fiscal policy refers to the alteration of government's revenues (primarily tax revenue) and expendit...

Q: If buyers pay more of a tax than do the sellers اختر أحد الخيارات a. demand is more elastic than sup...

A: Tax is a compulsory payment that is imposed by the government either directly or indirectly on the c...

Q: Three roommates, Jim, Saleem, and Ritesh, are thinking about buying a new speaker system for their a...

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for yo...

Q: Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output ...

A: A competitive firm is a price taker and can sell any quantity of output at the market determined pri...

Q: QUESTION 86 Table 25-1 Output Consumption Investment Net Exports 1,000 800 50...

A: Change in inventory can be calculated by using the following formula.

Q: 1. The manufacturers of printers are operating in a perfectly competitive market. Each printer sold ...

A: We are going to use profit maximisation method for perfectly competitive market to answer this quest...

Q: Quantity otTabor (workers) Total product (lawns mowed per hour) 0. 0. 3 4. 15 22 6. 26 28 table abov...

A: Marginal productivity of labor measures change in productivity after hiring an additional unit of la...

Q: Based on Aggregate Demand and Aggregate Supply Model, what is the effect on AD of each of the follow...

A: 14) AD equation in the AD-AS model is given as AD= C+I+G+NX  I) A decrease in individual taxes : Thi...

Q: why, according to some economists, should canada adopt the U.S dollar as its currency?

A: The economy of Canada: The economy of Canada is a profoundly evolved market economy. It is the tenth...

Q: For this problem, consider the five mutually exclusive investment alternatives, A through E, with in...

A: We are going to use incremental analysis to identify best alternative out of five independent altern...

Q: Consider the effects of Corona virus pandemic on the macro economy in Kenya. Suppose we assume that ...

A: Large negative aggregate demand shock due to the effects of Corona virus pandemic is causes to a red...

Q: ework (Ch 09) 4.0 Monopoly Outcome 35 3.0 25 2.0 MC 15 1.0 0.5 MR 50 100 150 200 250 300 350 400 450...

A: In a competitive market there are large number of firms producing identical products thus acting as ...

Q: 2. Fill in the blanks: Real GDP Nominal GDP GDP Deflator (base year (in 2000 dollars) (in current do...

A: Gross domestic product (GDP) refers to the total value of all the final goods and services that prod...

Q: Calculate growth in GDP under the following conditions (show calculations): Government spending de...

A: Gross domestic product (GDP) refers to the total value of all the finished goods and services that p...

Q: Draw diagrams illustrating the impact on the demand for money, the supply of money and the equilibri...

A: The central bank determines the nominal quantity of money (MS) in any economy. It is assumed that pr...

Q: Will Net exports (equals exports minus imports) rise or fall under each of these scenarios: S. price...

A: Net export = Export - Import Scenario A : if US price rises faster than foreign price level than it ...

Q: Please see the attached8

A: Profit maximising output will be the output at which the difference between the Total Revenue and To...

Q: Points on a firm's total product curve are اختر أحد الخيارات .a. both attainable and technologically...

A: The total product curve shows the maximum quantity of output that a firm can produce with a given qu...

Q: Decent Donuts Total product dozens of donuts per) Labor (workers) (day 12 1 26 44 64 4 86 110 122 7....

A: The average product (AP) of labor is calculated by dividing the total product (TP) by the number of ...

Q: A fixed capital investment of P 10,000,000 is required for a proposed manufacturing plant and an est...

A: Given information: Fixed capital investment = 10,000,000 Working capital = P 2,000,000.00 Annual pro...

Q: Q = 100 – 2 P + 7 Py,“ || here Pr = £20, where P, = £20 is the price of another product- a) Calculat...

A: Elasticity of demand depicts how much consumer responds with the change in price. 

Q: If goods X and Y are COMPLEMENTS, the which of the following could be the value of cross price elast...

A: Complementary goods are those goods that are demanded together. Without one good, the good is useles...

Q: As long as _________ exist, a monopolist can earn positive profits in the long run A.Entry barriers ...

A: In a monopoly there is a sole producer of a good in the market thus acting as a price maker. 

Q: The market determined price in a perfectly competitive industry is P = Rs. 10. Suppose that the tota...

A: A firm’s main objective is to maximize its profits which occurs when the marginal revenue and the ma...

Q: What effect will each of the following have on the supply of auto tires? The expectation that the eq...

A: Supply denotes the volume of goods and services that a producer is willing to sell at different pric...

Q: Table 36-2 ​ Domestic ​ ​ ​ GDP Expenditure ​ Exports Imports Total Expendit...

A: The expenditure approach is the most common method in calculating GDP. Under expenditure approach GD...

Q: Please see the attached4

A: The marginal revenue refers to the additional unit of revenue add to the total revenue by selling on...

Q: The following table lists several corporate bonds issued during the second quarter of 2015. Company ...

A: A corporate bond is a bond provided by an organization for a number of purposes, like operating acti...

Q: John consumes apples a where x is the number of apples and 5 bananas. W his? 25 apples, 25 bananas O...

A: If an individual has a set of alternatives that can be rank-ordered according to the preference of t...

Q: Economics Question

A: MNC  A corporate organization that owns and controls production of goods and services in countries o...