THEORIES OF TRADE CYCLE

THEORIES OF TRADE CYCLE forward from time tu time. We shall say here a word about some well-known  conchs, Climatic Theory It is said that there are cycles of climate. For some years the climate is favourable and then comes an unfavourable turn. Changes in climate...

PROBLEMS AND APPLICATIONS

PROBLEMS AND APPLICATIONS 1. Brad spends his income on two goods: hair gel and toothpaste. Both goods are normal goods Suppose that the price of hair gel falls. a. Show the effect of this price decrease on Brad’s budget constraint. b. Show the effect of the...

QUESTIONS FOR REVIEW

QUESTIONS FOR REVIEW 1. A consumer has income of $3,000. Wine costs $3 a glass, and cheese costs $6 a pound. Draw the consumer’s budget constraint What is the slope of this budget constraint? 2. Draw a consumer’s indifference curves for wine and cheese....