One reason the demand for laptop computers might increase is a

A) decrease in income if laptops are a normal good.
B) change in preferences as laptops have become more portable, with faster processors and larger hard drives.
C) fall in the price of a laptop computers.
D) poor quality performance record for laptop computers.
E) fall in price of desktop computers.

B

Economics

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Find the Marginal Rate of Technical Substitution for the following production functions:

a. q = L0.5 K0.5 b. q = L0.5 + K0.5 c. q = min{K,L} d. q = L + K

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In the IS-LM-PC model, LM curve is

A) flat. B) upward sloping. C) downward sloping. D) vertical.

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