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Firm A faces a price elasticity of demand of -2.5 and a cross-price elasticity of demand with Firm B's product of 0.75. If Firm B lowers its price by 10% and Firm A leaves its price unchanged, then the change in Firm A's quantity sold will be
If the market capitalization rate is 16 percent, calculate the current stock price and the stock price for each of the next three years.
Draw the opportunity set of a consumer with an income of $1200 who faces prices of Px = 10 and Py = 5. What is the market rate of substitution between the two goods?
Assume that velocity and aggregate output are constant. If the money supply increases from $1.10 trillion to $1.18 trillion:
Using both market and firm graphs for a perfectly competitive industry, show the effect of an increase in consumers’ income taxes. Assume the representative firm and market begin in long run equilibrium. Illustrate the short run effect on price, outp..
the student has decided to save money in equal monthly amounts for 48 months and then pay cash. If the student earns 0.75% per month interest on the money she saves, how much money is the monthly savings?
What might be the factors that might drive some individuals to decide to quit their jobs and go and start their own business rather than wait for salaries every
The rule of choosing the final proposal is simple. First, Z is the person to determine who (either X or Y) is the proposal raiser. Then the proposal raiser chooses a particular proposal. Finally, the last person has the right to pass it or reject it...
The marginal damage averted from poolution cleanup is MD=200-5Q. The marginal cost associated with pollution cleanup is MC=25+2Q. What is the optimal level of pollution reduction? Show that this level of pollution reduction could be accomplished thro..
In determining the best variables to choose for a linear regression model scatter plots can be used. What is an indicator of a good independent variable candidate for regression analysis?
Discuss a real world example that could, or has already, caused a shift in either the AD (aggregate demand) or SRAS (short run aggregate supply) curves for the US economy, or some other country.
There were 13,249 weddings in Springs City last year. According to state records, notaries public performed 17% of the weddings. How many weddings were not performed by notaries public?
Recall from Exercise Ul the population of animals fighting over a food source worth 200 calories. Assume that, as in part (b) of that exercise, the cost of a fight is 150 calories per fighter. Assume also that a third phenotype exists in the populati..
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