households will shift toward purchasing raisins from purchasing relatively more expensive goods. This is the substitution effect. Both effects imply that the quantity of raisins demanded will rise as the price of raisins falls. 4. Using indifference curves and budget constraints‚ explain how a consumer maximizes utility. Show how
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Micro-Economics Report of Microeconomics Submitted by: Sultan Lashari 10 2629 Submitted To: SIR MICHAEL SIMON Program: BACHELORS OF BUSINESS ADMINISTRATION FALL 2010 ------------------------------------------------- National University of Computer & Emerging Science Management
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10 3.8 Plant Room Locations 10 3.9 Universal Access 10 4.0 Heating Services 11 4.1 Fuel Assessment and Selection 11 4.1.1 Oil Fuel Services 11 4.1.2 Natural Gas Services 12 4.1.3 Bulk Gas Services 12 4.2 Heating Centre 12 4.3 Boiler Plant 12 4.4 Flues and Chimneys 14 4.5 Space Heating and Distribution 14 4.6 Heating Controls 16 4.7 Insulation 17 5.0 Water Services 18 5.1
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labour supply. These effects are the same as would be under an increase in the wage rate‚ shown diagrammatically in Figure 2. {draw:frame} Figure 2: Diagram showing the effects of a wage increase The movement around the original indifference curve from A to C is the substitution effect; this arises due the change in price of leisure relative to hours of work‚ holding utility as constant. As the wage rate has increased the opportunity cost of leisure opposed to work has risen. The substitution
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FINAL EXAM MATERIAL Lecture notes: see Blackboard Tutorial problem sets: see Blackboard Book chapters: Varian‚ 8th ed. 1 The market 2 Budget constraint 3 Preferences 4 Utility 5 Choice 6 Demand 8 Slutsky equation (no algebra required) 14 Consumer’s surplus (no algebra required) 15 Market demand 18 Technology 19 Profits maximisation 20 Cost minimisation 16 Equilibrium 31 Exchange and Welfare Theorems (no algebra required)
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summary statistic that measures how equitably income is distributed in a population. It is derived from the Lorenz curve which plots the cumulative percentages of the income and the population against which it is distributed. The line at 45 degrees thus represents perfect equality of incomes. The Gini coefficient is the ratio of the area that lies between the line of equality and the Lorenz curve divided by the total area under the line of equality. A Gini coefficient of 0 represents perfect equality‚
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Arab Open University Tutor Marked Assignment (TMA) Academic Year 20 12 - 2013 | Semester | Branch: | Program: | Course Title: | Course Code: | Student Name: | Student ID: | Section Number: | Tutor Name: | Total Mark: | Awarded Mark: | Mark details | Allocated Marks | Questions | Q1 | Q2 | Q3 | Q4 | Q5 | | Total80 | | Weight | 20 | 20 | 10 | 15 | 15 | | | | Marks | | | | | | | | | Allocated Marks | Criteria | Presentation5 | Referencing5
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date t in the future‚ let Z(t; T ) be the value of $1 to be delivered at a later date T : (1.1b) Z(t; T ) = zero coupon bond‚ maturity T ‚ as seen at t. These discount factors and zero coupon bonds are the ones obtained from the currency’s swap curve. Clearly D(T ) = Z(0; T ). We use distinct notation for discount factors and zero coupon bonds to remind ourselves that discount factors D(T ) are not random; we can always obtain the current discount factors from the stripper. Zero coupon bonds Z(t;
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FIN 501 Test 2 138 terms by Mila_Sambunjak Ready to study? ! Start with Flashcards Which of the following statements is CORRECT? a. You hold two bonds. One is a 10-year‚ zero coupon‚ issue and the other is a 10-year bond that pays a 6% annual coupon. The same market rate‚ 6%‚ applies to both bonds. If the market rate rises from the current level‚ the zero coupon bond will experience the larger percentage decline. b. The time to maturity does not affect the change in the value of a bond in response
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Hence 1=1; [pic][pic]………………………………….ix [pic]…………………………………….x The ordinal utility theory uses the indifference curves(IC) to analyze the equilibrium condition of the consumer. Y IC X The consumer aims at consuming at the highest indifference curve. The furthest IC from the origin presents the highest satisfaction of two commodities‚ but is constrained by her fixed
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