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A. Show diagrammatically and algebraically cases of unitary elasticity, as discussed in class. Connect these with pertinent examples involving products and services.
B. Identify business cases/situations/products with elasticity values:
Compute the price elasticity when the price changes from $6 to $5(use the arc elasticity formula). What is the change in total revenue from this price change?
Assume the United States government determines that the cigarette smoking creates social expenses not reflected in current price of cigarettes in the market.
Joan is deciding where to spend her spring break. If she goes to Cancun, Mexico, the trip will give her 9,000 utils of satisfaction and will cost her $300. If, instead, she travels to Florida, the trip will give her 5,000 utils of pleasure and w..
Estimate the own price-elasticity of demand.
Our currencies value vis a vis other currencies. Explain why did the US abandon the standard in the first place.
Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one more worker, the firm’s total monthly revenue will increase from $50,000 to $58,000. If he adds one more tractor.
What is your average total cost? Suppose you could produce one more (the fifth) widget at a marginal cost of $5. If you do produce that fifth widget, what will your average total cost be? Has your average total cost increased or decreased? Why
Consider the market for ABC Company's stock. What should happen to the stock for this company if there is a rumor that the company is set to merge with another very profitable company?
Discuss what has occurred to change the demand for, or the supply of, the good or service, and market prices of those products or services.
With a falling price level, what happens to the actual real interest rate? Does your answer depend on what happens to the nominal interest rate? Briefly explain.
Industries used to make capacity, production, inventory and staffing decisions based on long-range forecasts.
Illustrate what were some of the major contributing factors and how did they combine to cause the recession. How were you affected by it.
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