EBK MICROECONOMICS: PRIVATE AND PUBLIC
EBK MICROECONOMICS: PRIVATE AND PUBLIC
16th Edition
ISBN: 8220103612142
Author: Gwartney
Publisher: Cengage Learning US
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Chapter 2, Problem 14CQ

(a)

To determine

Influence of work effort when there is a link between personal output and personal reward.

(b)

To determine

Influence of random grading in studies.

(c)

To determine

Impact on study habit when examination conducted on the basis of textbook questions.

(d)

To determine

Check whether the total output of a nation will be influenced when there is a link between productive contribution of individual and their personal reward.

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(d) Calculate the total change in qı. Total change: 007 (sp) S to vlijnsi (e) B₁ is our original budget constraint and B2 is our new budget constraint after the price of good 1 (p1) increased. Decompose the change in qı (that occurred from the increase in p₁) into the income and substitution effects. It is okay to estimate as needed via visual inspection. Add any necessary information to the graph to support your 03 answer. Substitution Effect: Income Effect:
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