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The demand function for DVD players has been estimated to be QPlayer = 134 - 1.07PDVD + 46Pm - 2.1PDVD - 5M, where QPlayer is the quantity of DVD players, PDVD is the price of a videocassette, Pm is the price of a movie, PPlayer is the price of a DVD player, and M is income. Based on this information, answer the following questions. a. Are DVD players normal or inferior goods? b. Are movies substitutes or complements for DVD players? c. What additional information is needed to calculate the price elasticity of demand for DVD players?
Our currencies value vis a vis other currencies. Explain why did the US abandon the standard in the first place.
Much has been made of the fact that people don't consistently act with scientific rationality. What is meant by rationality Consider the three "systematic mistakes" discussed in your text. What are the costs of making those "systematic mistakes".
Assuming that the farmer can dispose of $7 from the writer as she wishes, what range of payments will the beekeeper accept Assuming that the beekeeper gets that amount, what range of payments will the farmer accept
Suppose that China is pegging its exchange rate to the US dollar. What are the actions required on the part of the Chinese central bank in response to (a) a decrease in income in the US, (b) a decrease in income in China, and (c) contractionary (..
Microhard has issued a bond with the following characteristics:
If this analysis is correct, namely that a reduction in wages will reduce the aggregate demand for goods, what assumption must we make about the relative proportions of wages and profits that are spent (given that a reduction in real wage rates wi..
Consider a tropical island economy with 2-sectors, souvenir manufacturing and hospitality. Both sectors are perfectly competitive, and workers are equally able and willing to work in either industry.
During the 1980s and 1990s, a period of economic conservative governments in much of the West and Japan, a leading approach among development economists was
Transaction costs are inherent in the trade-off between risks and uncertainties. Propose how one can determine the efficient levels of information in an organization to justify taking risk over uncertainty.
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.) What fiscal policies and monetary policies would be appropriate at this time
What are the factors that would influence the Federal Reserve in adjusting the discount rate - how does the discount rate affect the decisions of banks in setting their specific interest rates?
What is the maximum allowed in checkable deposits? - What are the required reserves? - By how much can this bank expand the money supply in checkable deposits?
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