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1. If 800 units are sold at a price of $120 and 240 units are sold at a price of $180, what is the absolute value of the price elasticity of demand? Use the midpoint formula.
2. Which of the following pairs of items will have a negative cross-price elasticity, which will have a positive cross-price elasticity, and which will have zero cross-price elasticity?
a. Beef and pork
b. Air travel and weed killer
c. Shampoo and conditioner
Consider a 2 × 2 two-player zero-sum game in which the possible outcomes for Player 1 are win (payoff = 1) or lose (payoff = -1). The win probabilities corresponding to each of the four action pairs are UL : 1/3 UR : 2/3 DL : 3/4 DR : 1/4 a) (2 point..
Choose what you consider the most significant difference between B2B E-Commerce and B2C E-Commerce: Explain the difference using an example, and why you think it is the most significant.
The federal reserve has power to adjust the nominal federal funds rate of interest. How do they do this? How is this different from quantitative easing? How does affecting the nominal federal funds interest rate address recessionary gaps in the econo..
Consumer Surplus, Producer Surplus—Discuss with appropriate diagrams. Graphically demonstrate consumer surplus in the market for Butterfinger candy bars.
Let’s now take a look at the question of whether or not cash is dead. View the presentation “Cash Is Dead! Long Live Cash! (Links to an external site.)”. Briefly explain this paradox: Why have people’s cash-holdings continued to rise, despite the man..
Craig’s Red Sea Restaurant is the only restaurant in Columbia, South Carolina, that sells Ethiopian food. The demand for Ethiopian food is given by Q = 10,000 - 20P. Craig’s costs are given by TC = 1,000 + 10Q + .05Q2. (A). If Craig behaves like a mo..
On June 5, 2003, the European Central Bank acted to decrease the short-term interest rate in Europe by half a percentage point, to 2 percent. The bank’s president at the time,Willem Duisenberg, suggested that, in the future, the bank could reduce rat..
With respect to three goods- ice cream, green tea, and digital cameras, what does it mean when your preference for, and satisfaction. What is the difference between a “shift in demand” (an increase or decrease in demand) and a “change in the quantity..
Discuss one (1) recent price change that you have noticed while visiting your local supermarket. Speculate on whether or not the price change that you identified was a result of a change in either supply or demand. Provide a rationale for your respon..
Explain how higher utilization of assets such as aircraft, gates, and pilots lowers the cost per available seat mile (CASM) or cost per available seat kilometer (CASK).
Calculate the cost elasticity of demand as well as for paint as well as show your calculations.
Make a list of businesses that provide goods and services that you or your family members use in a typical week.
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