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Suppose a linear demand function is estimated for good x as, Qd = 100 – 4*Px + 6*Py + M. where Px = $4, Py = $2, and M =10. M is the average income of consumers, measured in thousands of dollars. What is the price elasticity of good x? (choose the nearest number)
Firm 1 and Firm 2 compete in an industry and must decide whether to introduce an upgrade to their existing products. The nature of the strategic interaction is described by the game box, where (Y) means “upgrade” and (N) means “do not upgrade”. Draw ..
q1. if a monopolist has an own-price demand elasticity of -.8 is it maximizing profits? explainq2. what are some
Two goods are complements when a decrease in the price of one good
What are the four market types? Give an illustration of each. From a social standpoint, what is the problem with monopoly? Discuss this using an example for illustration.
The country of Alcazar has been growing at an impressive pace for the last five years. With improvements in technology, many industries have recorded remarkable growth in productivity
Define economic growth, and explain what it means in terms of standards of living. Explain how a technological advance can contribute to economic growth. Why do institutions such as private property rights promote economic growth?
Lifecycle models base on the assumption that households want to maximize their consumption and at the same time insure themselves against income shocks. Are there other arguments that can reconcile the empirical observation of consumption dispersion ..
The economy is made up of C and I and is currently at full employment. If consumption is $5 trillion while savings is $1 trillion, what is present investment according to classical economists.
Calculate national income form the following figure-consumption: 200 billion. if there were 80 million people in this country, what would the GDP per-capita be? if all prices were to double overnight, what would happen to the values of real and nomin..
Hollow just paid a dividend of $1.68.They expect dividends to grow at 10% for the next 3 years. After year 3, the growth rate will fall to the industry average of 3%.If the required return is 8%, find the current price.
Illustrate what is the efficient price of water. Illustrate what are the quantities of water allocated to agricultural also industrial use
In the same context of Q6 above, briefly explain why the prices of Short Term US treasury securities are still high enough to keep the interest low enough despite the fact that the US Bond rating has been downgraded from AAA status to AA+ by S&P in J..
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