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if you were a manager in a tobacco company, analyze the elasticity of demand for tobacco products. Evaluate the factors involved in making decisions about pricing tobacco products indicating which would be the most influential.
Using the same scenario above, discuss how the elasticity influence the short-term and long-term decisions of the company and the impact to the decision made related to profitability.
It is often suggested that the Bank of Canada try to reduce the inflation rate to zero. If we assume that velocity is constant, does this zero-inflation goal require that the rate of money growth equal zero.
Illustrate what happens to bicycle supply. What happens to bicycle demand.
Draw a graph of the UK labour market that shows the demand for labour, the supply of labour, and the real wage rate in 1973 and 2003. Draw a graph of the UK production function in 1973 and 2003. Make sure your graph shows potential GDP in both year..
According to Jeffrey Sachs, Illustrate kinds of development assistance can make a difference in Africa, and what role does he anticipate for the developed world.
Suppose Shaqueena is currently earning income of $23,000 (I =23) and can earn that income next year with certainty.
Nominal GDP in a country was $8,759.9 billion in 2003 & $9,254.6 billion in 2004. The price index was 102.86 for 2003 & 104.37 for 2004.
Explain the difference between fixed production technology and variable technology. Should the government set a goal of reducing the marginal social cost of pollution to zero in industries with fixed-production technology.
As the Federal Reserve utilize its special powers to buy and sell government bonds, how does buying and selling government bonds affect the supply of money in the economy.
Assume that a given set of resources can be used to make either handbags or wallets. The MC of a handbag is $19 and MC of a wallet is $10.
The Occupational Safety and Health Administration (OSHA) promulgates safety and health standards. These standards typically apply to machinery (capital), which is required to be equipped with guards, shields, and the like.
Show whether change causes a shift in supply curve, a shift in demand curve, a movement along the supply curve, and/or a movement along the demand curve.
What fiscal policy would you implement and why? Graph and explain the whole situation from start to finish, make up your own numbers. Make up your own MPC from that you will be able to derive the multiplier.
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