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Explain why the price elasticity of demand is negative. What would the price elasticity of demand be for a “prestige good”, one for which quantity purchased increases as price increases? How do you reconcile these two statements?
A price floor reduces the amount of a product that consumers buy because it keeps the price above the competitive equilibrium of market.
Let US$4=MX$15. If inflation in the US goes up by 4%, and inflation in Mexico goes up by 6%, what do we expect the exchange rate to be in the next period? Assume purchasing power parity holds. Show all work.
The only change which happened between the previous and the current year is that while in the previous year all of the 100 million worth of imports were used for consumption, now all imports are directed exclusively to investment . Therefore this wil..
q.governments often complain about one anothers macroeconomic policies. this question asks you to analyze one example.a
Bill is thinking of investing in a Silicon Valley start-up. His von Neumann-Morgenstern utility-of money function is U(w) = 9+w-(w^2/100) where w denotes wealth measured in thousands of dollars (thus w = 1 means $1,000). Would a risk-neutral person m..
q.investment and monetary policya the economist on the 7th may 2011 printed the followingas vietnams government appears
For se shipment patterns, what would be better brewery location for minimizing annual transportation costs to warehouses.
There is nothing like reading a good book or watching a great movie for a little escapism and entertainment. With all of the television channels out there and access to the internet, you can watch just about anything you want at any time. When you he..
The plant has accumulated savings of $80,000 to acquire a new machine for the Manufacture Department. The new machine costs $80,000. The Straight line depreciation method is used buy this plant in all its equipments. Compute the present worth after t..
no government transfer payments, taxes of $210 million merits, a budget surplus of $60 billion merits, and investment of $100 billion merits. Illustrate what were its consumption and government expenditures on goods and services
Suppose a firm faces the following demand for its output q: q = 100 – 10p, where p represents the price it receives per unit sold. The level of output at which this firm maximizes its total revenues is [q]. (NOTE: write your answer in number format, ..
There are only 2 firms in a market facing same demand curve as follows: Q = 120 – 10P The marginal cost of each firm are, respectively, MC1 = 4 + 0.2 Q1 and MC2 = 4 + 0.2 Q2 a). Find the profit maximization level of output for both firms. b). which f..
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