Suppose we have 2 goods, x1 and x2, with respective prices p1 and p2. sam has income m. sam’s demand function for good x1 is given by: x1(p1,p2,m) = p2m - p21 (a) given the above demand function, graphically depict how we would derive sam’s engel curve from the income consumption curve (just give a rough sketch like the ones done in the lecture notes). (b) are goods x1 and x2 substitute goods? explain. (c) now suppose p2 = 5 and m = 10. there are 20 consumers in the market and all consumer’s have identical demand functions. what is the market demand function. (d) find the price elasticity of market demand if p1 = 3. (e) given the price elasticity of demand you calculated in part d), is good 1 an ordinary good or a giffen good? explain.

Which of the following statements regarding the learning curve and economies of scale is accurate? answers: just as diseconomies of scale are presumed to exist if a firm gets too large, there is a corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.where diseconomies of scale are presumed to exist if a firm gets too large, there is no corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.where diseconomies of scale are presumed to exist if a firm gets too small, there is no corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.just as diseconomies of scale are presumed to exist if a firm gets too small, there is a corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.

What type of budget is stated? a budget is a type of financial report that scrutinizes the inflow and outflow of money in a given financial year.

Why is following an unrelated diversification strategy especially advantageous in an emerging economy? a. it allows the conglomerate to overcome institutional weaknesses in emerging economies. b. it allows the conglomerate to form a monopoly in emerging economies. c. it allows the conglomerate to use well-defined legal systems in emerging economies. d. it allows the conglomerate to take advantage of strong capital markets in emerging economies.