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A price discriminating firm has two groups of customers. If the elasticity of demand for group 1 is -2, the elasticity of demand for group 2 is -4, and the price paid by group 1 is $15, the price for group 2 is _____.
Toward the end of the recent recession, the economy was characterized by a "jobless recovery" - output and hours worked were rising, but employment was not. Explain what may have been happening.
An economy begins in the long run equilibrium, and credit card companies start offering cash back on every purchase. How does this change affect the demand for money? What happens to the velocity of money?
A public private initiative in Texas will significantly expand the wind generated energy throughout the state. The cash flow for one phase of the project involving Centrals point Energy, a transmission utility company, is shown. How many number of RO..
Suppose you only consume X(axis) and lemons (Y axis) If coconuts are normal good.Graphically illustrate how to derive an Engel curve utilizing consumer choice theory.
If MC was $10 per unit, how much would the firm chose to produce? If FC was $200, how much does the firm earn in profits?
How does a decrease in the global price of an input (such as oil) effect the SRAS curve? Explain and illustrate why also include what effect would we expect this shift in SRAS to have on equilibrium GDP and economic growth?
Distinguish between use and nonuse values in the specific case of preserving the quality of water in an underground aquifer. How might you measure the different types of benefits in this case?
Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 4.50% per year. What is the real risk-free rate of return, r*? Disregard any cross-product terms, i.e., if averaging is required, use the arithme..
A farmer uses three inputs to produce vegetables: land, labor, and capital. The production function for the farm exhibits diminishing marginal rate of technical substitution. What Happens when labor and capital increases by 5% and land remains fixed?
To many upscale homeowners, no other flooring offers the warmth, beauty, and value of wood. New technology in stains and finishes call for regular cleaning that takes little more than sweeping and/or vacuuming, with occasional use of a professional w..
Botswana is one of the few economic success stories in Africa. While still plagued with many problems (e.g. one of the highest rates of AIDS infection in the world), it has managed to transform itself among the poorest countries to a middle income co..
Monetary policy can be used for contractionary or expansionary purposes just as we learned that fiscal policy could. Can you help me figure out when/how we would want to use expansionary monetary policy and when/how we would want to use contractionar..
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