Ch 1 - ECN101 Intermediate Macroeconomics Professor E.A.Frenkel Homework 1 Solutions Winter 2009(2 To better understand the role between exogenous

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ECN101 Intermediate Macroeconomics Winter 2009 Professor E.A.Frenkel Homework 1 – Solutions (2). To better understand the role between exogenous and endogenous variables in a typical economic theory diagram, please draw four graphs that show the influence of each of the the following variables on the quantity of Baskin-Robbins Jamoca Almond Fudge ice cream flavor demanded in the United States (place quantity of ice cream demanded on the "X" axis): SOLUTION : for the following relations, we assume a simply linear demand curve . The price of this ice cream flavor. The average income of the consumer of this ice cream flavor. The average price of frozen yogurt (an ice cream substitute). Q ice cream Income Q ice cream P ice cream Q ice cream P yogurt
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The price of green tea in Sydney, Australia. This exercise shows that there are different ways of trying to explain the same thing on the two-dimensional graph (the quantity of ice cream demanded). Each of your graphs will say something about the quantity demanded of ice cream and some other important (or less important) variable in the economy. For each of the four graphs, the two variables on the axes are the endogenous variables whose relationship is explained
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This note was uploaded on 01/16/2011 for the course ECN 101 taught by Professor Frenkel during the Winter '10 term at UC Davis.

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Ch 1 - ECN101 Intermediate Macroeconomics Professor E.A.Frenkel Homework 1 Solutions Winter 2009(2 To better understand the role between exogenous

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