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Q1. Use a hypothetical example to illustrate whether you agree or disagree with the following statement: "Unemployment will go up more if the demand for labor is elastic because the demand for labor will decrease more when you have elastic demand than if demand were inelastic." Elucidate why using hypothetical numbers to illustrate your case.
Q2. What suppose that you buy a bond for $100 that pays 4 percent interest per year. How much money will you have earned when the bonds reaches maturity in five years?
Why would we expect that the price elasticity of demand for the product of an individual firm would typically be greater than the price elasticity of demand for the product overall.
What is the deadweight loss in both markets if the price of a crate of fresh oranges is raised.
While the population variances are unknown, we will assume they are equal.
Calculate the cross-price elasticity of demand. Given the elasticity you calculated, did it make sense for supermarket to raise its price.
How large is the bias in the CPI due to not immediately incorporating new goods.
The problem is that even though you have assigned values of a,b,c, SN thinks that f is also a function of t, for which you have not assigned a value.
Bob as well as Nancy live in a new housing development as well as they would like to have fire hydrants installed to assist the fire department in case of a fire.
Do you think this particular budget cutting policy helpful to curb the growing budget deficit.
The equilibrium quantity increase or decrease depends on Demand
The cost curves of the firm. In terms of economies of scale, why would a firm sometimes want to expand output and sometimes not want to expand output.
Give an example of a government created monopoly. Is creating this monopoly necessarily bad public policy?
Starting with the situation in part d, suppose the government starts taxing the population $30 each year without spending anything.
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