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Author Question: According to the Hotelling Principle, the price of a nonrenewable resource is expected to A) rise ... (Read 51 times)

gonzo233

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on: Jun 29, 2018
According to the Hotelling Principle, the price of a nonrenewable resource is expected to
 
  A) rise at a rate higher than the interest rate.
  B) rise at a rate lower than the interest rate.
  C) rise at a rate equal to the interest rate.
  D) fall at a rate equal to the interest rate.

Question 2

The above figure shows Jane's budget line and two of her indifference curves. Jane's marginal rate of substitution is
 
  A) the rate at which she would give up a lobster dinner for a steak dinner and consider herself just as well off.
  B) equal to the ratio of the price of a steak dinner to the price of a lobster dinner when she is at her best affordable point.
  C) equal to 2 lobster dinners per steak dinner at her best affordable point.
  D) Both answers A and B are correct.


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shayla

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

D


gonzo233

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Reply 2 on: Jun 29, 2018
:D TYSM

Joy Chen

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Reply 3 on: Yesterday
Excellent

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