Refer to the below figure: the saving function can be given as: Aggregate consumption (C) 270 200 130 60 450 100 S = -60 -0.3Y OS=-60+ 0.3Y O S = 60+ 0.7Y O S = -60 -0.7Y O S = -60 +0.7Y 200 300 Aggregate income (Y)

Refer to the below figure: the saving function can be given as: Aggregate consumption (C) 270 200 130 60 450 100 S = -60 -0.3Y OS=-60+ 0.3Y O S = 60+ 0.7Y O S = -60 -0.7Y O S = -60 +0.7Y 200 300 Aggregate income (Y)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please help me!! Qx=1.0-2.0Px+1.5I+0.8Py-3.0Pm+1.0A Where Qx= sales of CFC cornflakes, in millions of 10-ounce boxex per year Px= the price of CFC cornflakes, in dollars per 10-ounce box I= personal disposable income, in trillions of dollars per year Py= price of competitive brand of cornflakes, in dollars per 10-ounce box Pm= price of milk, in dollars per quart A= adveritising expenditures of CFC cornflakes,in hundreds of thousands of dollars per year This year, Px=$2, I=$4, Py=$2.50 , Pm=$1, A=$2 Questions c) Estimate the level of sales next year if CFC reduces Px by 10 percent and increases advertising by 20 percent, Income rises by 5 percent, Py is reduced by 10 percent, and Pm remains unchanged. (d) By how much should CFC change its adveritsing if it wants its sales to be 30 percent higher than this year?
n a simple frugal economy the consumption function is C = 200 + 0.8Y, and exogenous desired investment is 100. Equilibrium aggregate output/income (Y*) for this economy is A) $1,000. B) $1,500. C) $800. D) $300.
1,000 900 800 700 600 500 400 Consumption ($ billions per year) 300 200 100 45° 0 100 200 300 400 500 600 70000 1,100 900 1,000 Disposable Income ($ billions per year) The autonomous consumption represented by the consumption function (green line) is: O $600 billion $700 billion O $300 billion
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