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“We saved 17% of our disposable income during the recession, the highest rate since World War II. The level of savings has fallen off since then to less than 10% of disposable income.” a)Would the higher savings rate eased or exacerbated the recession? Explain how. b)Why would the savings rate increase during a recession?
Suppose that Mimi plays golf 5 times per month when the price is $40 and 4 times per month when the price is $50. What is the price elasticity of Mimi's demand curve? Use the Midpoint Method to answer this problem.
Suppose that the government imposed a $1 tax each time someone used an ATM.
You are the manager of a monopoly that faces a demand curve described by P = 85 - 5Q. Your costs are C = 20 + 5Q. The profit-maximizing price is
Whenever a determinant of supply other than ---------price changes, the supply curve shifts. Elasticity is. When the price of used cds is $4, Daphne buys five per month. When the ----- price is $3, she buys nine per month. If the price of milk ris..
What are two ways a seller of labour (that is, someone looking for a job) might reassure a possible employer who is faced with imperfect information? What are two ways that a farmer looking to rent ground might reassure a landowner that is faced with..
Competitive firms will always try to earn more than a normal profit by doing the following, except
In September 2012, the New York City Board of Health approved Mayor Michael Bloomberg's proposal to ban the sale of large sugary drinks in restaurants and other venues in an attempt to reduce obesity and promote more healthful living. How do you thin..
Sanford (1952) in his discussion of the follower in the leadership process suggested that we think about the follower’s “readiness for leadership.” Explain what Sanford meant by this concept
A physician's office expenses increase 10 percent so she decides to raise the price of office visits by that much. Assuming the demand curve for office visits does not shift, what will happen to the total number of office visits and practice reven..
Identify an instance where a price control is used in our markets. Why do you think this price control exists? Also discuss the possible negative effects it may have on the market
In the long run, there will be no unexploited scale economies (excess capacity) in
Galvanized Products is considering a new computer system for their enterprise data management system. The vendor has quoted a purchase price of $100,000. Galvanized Products is planning to borrow one-fourth of the purchase price from a bank at 15 per..
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