function is QD = 20 – 4P and the government imposes a tax of $2 on consumers. What is the new demand curve? 3. What does the supply curve look like when there is a max quantity that can be supplied? 4. In the market for pizza what will happen if a. Worker’s wages increase. b. Income increases c. The price of cheese decreases. 5. The inverse demand for movies is P = 8 – (1/2)Q. Graph the demand curve. Show what happens when the price for movies declines from $6 to $3. 6. In the market for OJ what
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What does the slope of the budget line equal? d) What is an indifference curve? e) Why do consumers prefer higher indifference curves (farther to the right) to lower indifference curves? f) In an indifference curve/budget line framework‚ how does a consumer decide which of all possible combinations of goods to purchase? g) Describe the consumer equilibrium in the indifference curve/budget line model. h) In a budget line/indifference curve figure‚ how do you identify the best affordable combination
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To what extent is a counsellor more than just a good listener? In your discussion we would like you to draw on key elements that form the practise of counselling. In addition we would like you to consider your own qualities and skills and identify what you need to do to progress in the profession. This century has seen a rise in counselling services. We have counsellors for specific diseases‚ addictions‚ depression‚ divorce‚ name the problem and we seem to have a ‘therapist’ for it. So what
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‘It is often suggested that the source for many of William Wordsworth’s poems lies in the pages of Dorothy Wordsworth’s journal. Quite frequently‚ Dorothy describes an incident in her journal‚ and William writes a poem about the same incident‚ often around two years later.’ It is a common observation that whilst Dorothy is a recorder – ‘her face was excessively brown’ – William is a transformer – ‘Her skin was of Egyptian brown’ . The intertextuality between The Grasmere and Alfoxden Journals and
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Teaching Notes Now we step back from supply and demand analysis to gain a deeper understanding of what lies behind the supply and demand curves. It will help students understand where the course is heading if you explain that this chapter builds the foundation for deriving demand curves in Chapter 4‚ and that you will do the same for supply curves later in the course (beginning in Chapter 6). It is important to explain that economists approach behavior somewhat differently than‚ say‚ psychologists
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For Monash University Students: If you have studied intermediate level microeconomics this will be easy reading. Please assist fellow students. Financial Markets bring together borrowers and lenders of funds. They bring aggregate saving into equality with aggregate investment. Consumers have different time preferences for their consumption. Producers use capital until its marginal revenue productivity equals its opportunity cost in interest charges. These are Paretian optimal solutions for welfare
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the average variable cost b) Marginal cost is smaller than the average variable cost c) Marginal cost equals the average variable cost d) None of the above 6. The difference between the average total cost curve and the average variable cost curve gets smaller at higher quantity of output because a) The average variable cost is a constant b) The average total cost is decreasing for all output levels c) The average fixed cost is decreasing as output increases
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show that‚ if a consumer prefers more to less then his indifference curves cannot cross. 2) Suppose that current and future consumption are perfect substitutes. The indifference curves will consist of parallel lines with the negative slope m‚ where m > 0. a) How does the marginal rate of substitution between current and future consumption relate to the geometry (i.e. the slope and the intercept) of the consumer’s indifference curves? b) Given perfect substitutes‚ is more preferred to less
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weighted portfolio investing in all three assets and the return of an equally weighted portfolio investing only in assets 1 and 3? 4) Consider investors with preferences represented by the utility function U = E(r) − 1 Aσ 2 . 2 (a) Draw the indifference curve representing a utility level
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Chapter 1 NAME The Market Introduction. The problems in this chapter examine some variations on the apartment market described in the text. In most of the problems we work with the true demand curve constructed from the reservation prices of the consumers rather than the “smoothed” demand curve that we used in the text. Remember that the reservation price of a consumer is that price where he is just indifferent between renting or not renting the apartment. At any price below the reservation
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