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Explain how the quantity of used clothing bought changes. Describe the substitution effect and the income effect that occur.
If Pam changes how she spends her weekly income, will she buy more or fewer cookies and more or fewer granola bars?
For a normal good, does the income effect reinforce the substitution effect or does it partly offset the substitution effect?
Explain the conditions that are met when a consumer has found the best affordable combination of goods to buy.
If a household's money income changes and prices do not change, what happens to the household's real income and budget line?
If a household has an income of $40 and buys only bus rides at $2 each and magazines at $4 each, what is the equation of the household's budget line?
Calculate her real income in terms of popcorn. What is the relative price of smoothies in terms of popcorn? What is the opportunity cost of a smoothie?
Draw a graph of Sara's budget line with the quantity of smoothies on the x -axis. What is the slope of Sara's budget line? What determines its value?
What is the effect of the fall in Sara's income on her real income in terms of (a) smoothies and (b) popcorn?
What is the effect of the fall in Sara's income on the relative price of a smoothie in terms of popcorn? What is the slope of Sara's new budget line?
Sara's income falls from $12 to $9 a week, while the price of popcorn is unchanged. Explain how Sara's budget line changes with smoothies on the x -axis.
Draw figures that show your indifference curves for the Right gloves and left gloves, Coca-Cola and Pepsi and Desktop computers and laptop computers.
Will Pam be able to buy and want to buy 30 cookies and 5 granola bars next week?
Amy has $20 a week to spend on coffee and cake. Price of coffee is $4 a cup, and the price of cake is $2 a slice. Calculate the equation for Amy's budget line.
Will Jim now be able and want to buy 10 muffins and 20 coffees? Which situation does Jim prefer: muffins at $1 and coffee at $2 a cup, or muffins at $1.50.
Why does comparative advantage matter more than absolute advantage for trade? Please explain.
Describe how you might expand your capacity over time in the "long run".
Find the equilibrium allocation of traffic between the freeway and alternate routes.
Explain how the circular flow diagram relates to the current economic situation.
What factors are causing your county poverty rate to differ from (or equal) the national poverty rate?
Ong, L.L., 1997. Burgernomics: the economics of the Big Mac standard. Journal of International Money and Finance, 16(6), pp.865-878.
Analyze your chosen firm's current market share, and identify the firm's local/global competitors.
How does the price of eggs in Canada change? Do Canadians buy more or fewer eggs? Do Canadian egg farmers produce more or fewer eggs?
Why are U.S. soybean farmers subsidized? Explain how a subsidy paid to soybean farmers affects the price of soybean and the marginal cost of producing it.
On a graph of the market for low-skilled labour, show the effect of the minimum wage on the quantity of labour employed.