CHAPTER 1 APPENDIX - LOWER MORTGAGE RATES THAN AT HIGHER...

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CHAPTER 1 APPENDIX 1. THE SLOPES ARE AS FOLLOWS: LINE 1: 5; LINE 2: –5; LINE 3: 1; LINE 4: –1; LINE 5: SLOPE IS 1 AS X GOES FROM 0 TO 20, AND –1 AS X GOES FROM 20 TO 40; LINE 6: –250. 2. ANSWERS WILL VARY. (A) NEGATIVE SLOPE. AS PRICE RISES, QUANTITY OF APPLES PURCHASED FALLS. (B) POSITIVE (AND DECLINING) SLOPE. AS INCOME RISES, TAXES RISE; BUT THE RISE IN TAXES IS LESS AT HIGHER INCOMES THAN AT LOWER INCOMES. (C) NEGATIVE (AND DECLINING) SLOPE. AS MORTGAGE RATES FALL, HOME SALES INCREASE; BUT THE INCREASE IN HOME SALES IS MORE AT
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Unformatted text preview: LOWER MORTGAGE RATES THAN AT HIGHER MORTGAGE RATES. (D) NEGATIVE, THEN POSITIVE SLOPE. AS YOUNG CHILDREN GET OLDER, THEY RUN FASTER; BUT AS ADULTS GET OLDER (BEYOND A CERTAIN AGE), THEY RUN SLOWER. (E) POSITIVE SLOPE. GREATER SUNSHINE LEADS TO GREATER CORN YIELD. (F) POSITIVE, THEN NEGATIVE SLOPE. UP TO A POINT, MORE FERTILIZER INCREASES CORN YIELD; BUT BEYOND A CERTAIN POINT, ADDING MORE FERTILIZER ACTUALLY DECREASES THE YIELD. 3....
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This note was uploaded on 04/01/2010 for the course ECONOMICS 1005 taught by Professor Chapman during the Spring '08 term at University of the West.

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CHAPTER 1 APPENDIX - LOWER MORTGAGE RATES THAN AT HIGHER...

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