If price consumption curve is positively sloped,   Question 16 options:   two goods are complements   both goods are normal goods   one good is normal and the other good is inferior   two goods are substitutes

Q: The following information relates to a project Year Cash flow Sh. 'Millions' (16) 8 10 1 2 3 114 16…

A: A project should abandoned in an year which provides higher rate of return over the cost of capital…

Q: If combine the accounting definition E= C+I and the consumption function C=co + cY to give an…

A: The marginal propensity to consume (MPC) is a measure of how much an individual or a household…

Q: 9. The causes of the European banking and sovereign debt crisis included     (a) The creation of…

A: The objective of the question is to identify the causes of the European banking and sovereign debt…

Q: Consider the often debated crowding-out and crowding-in concepts.  Also consider expansionary fiscal…

A: The relationships between expenditure in the public and private sectors can be analyzed using the…

Q: where: C= $100+ 0.75 (Y-T) G=$600 T= $600 1= $200 X = $ 50 The economy is in equilibrium at a level…

A: Gross Domestic Product is the amount of goods and services produced in an economy during an…

Q: iv. What is the value of price elasticity of demand in relation to the initial equilibrium (part i)…

A: Market equilibrium is the state at which market demand curve intersects the market supply curve. At…

Q: The central bank of st. vincent and the grenadines decides to pursue a contractionary monetary…

A: Aggregate demand refers to the total quantity of goods and services that households, businesses,…

Q: Consider a competitive firm that produces two specific goods. The firm's cost function for the two…

A: The cost function of a firm producing two commodities is given byThe price of first commodity is…

Q: Suppose that the demand curve for wheat is Q=140-10p and the supply curve is Q = 10p. The government…

A: To solve this problem, we first need to find the equilibrium price and quantity without the price…

Q: A typical family consumes 53 kg of good X per month, and the current price of X is $14/kg. Due to a…

A: Marginal benefit is the extra gain earned by the consumer when they purchase a good or product. The…

Q: 14.4. ADVERTISING AND BRAND SWITCHING. Empirical evidence suggests that the proba- bility of a…

A: Advertising is the practice of marketing or publicizing a good, service, or concept with the goal of…

Q: The Keynesian multiplier relationship Y = 1/ (1-c) is derived from two initial equations: Y = C + I…

A: The objective of the question is to understand the conditions under which the Keynesian multiplier…

Q: Please label the statements regarding child labor as true or false. You are currently in a labeling…

A: Child labor, in economic terms, refers to the engagement of children in work that deprives them of…

Q: Which of the following is true with regard to food security? Food security exists when government…

A: United Nations committee defines Food Security as all people, at all times, having physical, social…

Q: Show that the Cobb-Douglas production function Y = KOL, where 0 0 and L> 0 by constructing its…

A: Cobb-Douglas production function is a utility function describing the preferences of consumers. The…

Q: The inflation tax refers to a. the revenue a government creates by printing money. b. higher…

A: Inflation refers to a general increase in the prices of goods and services in an economy. It can be…

Q: The newspaper article from Barbados below where Interest rate increases by central banks constitute…

A: Monetary policy is the tool used by the central bank of the nation to control the money supply in…

Q: A1. Milk or meat production Y per day is best explained by the inputs: feed needed per day in kg,…

A: Revenue Function : R(X1,  X2 ) = p X1a X2bWhere , X1 = Feed , X2 = Cow or calves Constraint function…

Q: Which of the following statements is incorrect? A)MC curve passes through the minimum point of the…

A: Costs refer to the expenses incurred by a business or individual in the process of producing goods,…

Q: Let the utility function be given by u(x1, x2) = √ x1 + √ x2. Let m be the income of the consumer,…

A: Since you have posted a question with multiple sub-parts, we will provide the solution to only the…

Q: 1. Age: 12 responses 2 Gender: 12 responses 25% 8.3% 50% 16.7% 18-25 45 (41.7% 50% 8.3% 18-25 26-30…

A: Age Distribution Pie Chart:18-25 age: 41.7% - The largest segment, indicating a significant portion…

Q: What are the equilibrium effects of an increase in the depreciation rate? Explain using the two…

A: An analysis of individual decision-making that extend two separate time periods, taking into account…

Q: Suppose that the equilibrium real federal funds rate is 1 percent and the target.rate of inflation…

A: Taylor's Rule, coined by economist John Taylor, offers a systematic approach for central banks to…

Q: The fiscal multiplier measures the effect of government spending on a nation's price level. True…

A: The fiscal policy refers to the policy of taxes and expenditures of government. The change in…

Q: A company that manufactures automatic blowdown control valves (for applications where boilers are…

A: Total revenue is equal to price times quantity. Total cost is the sum of total variable cost and…

Q: Why is tourism to important to the economies of Latin America and even more especially in the…

A: The tourism sector is a significant contributor to the global economy. The tourist business has been…

Q: 2) Current Real GDP = $21.5T Potential Real GDP = $20T MPS = .2 How much would be necessary to close…

A: Recessionary gap refers to the gap between potential output and actual output where actual output is…

Q: 4. Use the Mundell-Fleming model to predict what would happen to real GDP, the exchange rate, and…

A: MFM states that a small economy is open to international trade in goods and financial assets and…

Q: When they act as a profit-maximizing cartel, each company will produce information, each firm earns…

A: Oligopoly is a form of market organization in which there are few sellers of a homogenous or…

Q: Suppose that a firm's production function is: Its marginal product functions are: MPL = 5K0.5/L0.5 =…

A: Production function: The marginal product of labor: The marginal product of capital: Cost of labor…

Q: What causes the economy to move from its short-run equilibrium to its long-run equilibrium? The…

A: The aggregate demand (AD) shows the total demand for goods and services in the economy. The AD…

Q: An industry consists of three firms with sales of $225,000, $45,000, and $315,000. a. Calculate the…

A: The HHI is a statistic that's employed in some industries to evaluate market concentration. It is…

Q: Consider two hypothetical countries. In Country A, 18 percent of the labour force is unemployed for…

A: This can be defined as a situation In which the person is actively finding a job and has have…

Q: 1. What is one advantage and one disadvantage of increasing the minimum wage? 2. What is the impact…

A: This can be described as a form of market in which no single producer or consumer has the power to…

Q: A majority of economists believe that in the long run, real economic variables and nominal economic…

A: The aggregate demand curve shows the quantity of output that households, firms, the government, and…

Q: company has a choice to invest in one of two different things, A and B. A, has a $ 150 000 first…

A: The first cost of investment A is $150,000. Annual savings or revenue from A is $50,000.The first…

Q: Can you answer part d, e and f of the original question?

A: The rate of inflation is a measure that quantifies the percentage change in the general price level…

Q: Popcorn Soda Quantity Total Utility Marginal Utility Marginal Utility Per Dollar Spent Quantity…

A: The total utility from the consumer of popcorn and soda is given asPopcornSodaQuantity Total Utility…

Q: According to the national income identity, a. the trade balance is equal to the net capital outflow.…

A: Macroeconomic analysis provides a comprehensive picture of the financial status of an economy. It…

Q: The city of St. John's is intalling a new swimming pool in the east end recreation centre. One…

A: Present worth, also known as present value, is a financial concept used in the field of time value…

Q: On the following graph, use the orange points (square symbol) to plot points along the portion of…

A: Supply is the total amount of goods and services offered to the consumers for sale. Supply holds a…

Q: A monopolist faces the following market demand, total cost, and marginal cost: Market Demand: P =…

A: Monopoly is a form of imperfect competition. There is one firm. The number of consumers is high.…

Q: Income level $10,000 $50,000 $100,000 Refer to the table above. Abraham faces a a) progressive…

A: Defining a tax system involves establishing a framework for collecting revenue from individuals and…

Q: 16) The following figure shows the downward sloping demand and marginal revenue [MR] curves and the…

A: A perfectly price-discriminating monopolist is a theoretical concept in economics where a…

Q: Interest Rate 8765432 11 0 Sm Dm 100 200 300 400 500 600 Quantity of Money ($ billions) If the…

A: Bond is a debt instrument issued by government or corporation to raise money in financial…

Q: You and one of your classmates are considering setting up a prescription delivery service for local…

A: Equivalent Annual Cost refers to the cost per year incurred in operating and maintaining a certain…

Q: The Contractionary Monetary Policy used in the article is Taxation. (ii) Carefully explain, in as…

A: Monetary policy is done to control and manage the amount of money in circulation and interest rates…

Q: If the aggregate supply (AS) curve is very steep, will expansionary fiscal or monetary policy have a…

A: Expansionary fiscal policy happens when Congress acts to cut tax rates or raise government spending,…

Q: in-11.3% PW-P14,539.69 You are considering the purchase, for P15,000, of an annuity that pays 2,500…

A: When evaluating various projects or decisions involving significant investments, capital budgeting…

Q: Refer to Figure 8-5. Which area represents consumer surplus before the tax was levied? O a. A +B O…

A: The consumer surplus is the gap between the maximum price a consumer wants to pay and actual price a…